Aker BioMarine (AKBM) Q3 2024 earnings summary

Executive summary

• Completed sale of Feed Ingredients segment for USD 624 million, resulting in a net gain of USD 214.2 million and an extraordinary dividend of USD 373 million (NOK 45/share).

• Revenue from continuing operations in Q3 2024 was USD 49.3 million, down 7% year-over-year due to internal sales eliminations and a strong prior-year quarter.

• Adjusted EBITDA from continuing operations rose 10% year-over-year to USD 8.4 million, mainly from Emerging Business nearing breakeven.

• Focus now shifts to Human Health Ingredients, Consumer Health Products, and Emerging Business segments, with divestment of Understory protein business underway.

• Refinanced debt with NOK 1,600 million bond and USD 30 million bank facility.

Financial highlights

• Net profit for the quarter was USD 207.5 million, driven by the Feed Ingredients sale.

• Human Health Ingredients EBITDA reached USD 10 million, up 8% year-over-year; Consumer Health Products EBITDA down 5% year-over-year.

• Net interest-bearing debt at quarter-end was USD 135 million, leverage at 5.4x EBITDA, and equity ratio at 46%.

• Cash and cash equivalents at quarter-end were USD 14.9 million; total available liquidity USD 45 million.

• Net cash flow for the quarter was negative USD 4.8 million after dividend and debt repayment.

Outlook and guidance

• Solid demand for krill oil expected to support pricing improvements via product/customer mix and inflation adjustments.

• Consumer Health Products positioned for growth as retailer inventory normalizes and private label innovation continues.

• Emerging Business to focus on scaling and divesting Understory protein business, with cost optimization underway.

• Human Health Ingredients expected to see long-term growth, especially in Asia, with margin improvements from 2025.

• Maintenance capex for 2024 projected at USD 5-8 million; development capex for Understory plant at USD 5-7 million.