BioMar’s Strategic Overview Towards 2026
As the horizon of growth widens, BioMar is preparing for a significant transformation under its parent company, Schouw & Co. The decision made by the Board of Directors signals a potential shift that could enhance the company’s market presence and unlock greater value for its shareholders. This comes with the aim of evaluating a separate listing of BioMar, with plans possibly materializing in the early half of 2026.
Financial Evaluation and Guidance
The ongoing evaluation involves a detailed analysis conducted with the support of a prominent group of financial institutions. This team includes DNB Carnegie and Morgan Stanley, taking on key roles as Lead Joint Global Coordinators, alongside Danske Bank and Nordea, who will serve as Joint Global Coordinators. Independent financial advisory services have been entrusted to FIH Partners, ensuring a comprehensive approach to this strategic initiative.
Projected Growth Metrics
As part of the preparations for this potential IPO on Nasdaq Copenhagen, Schouw & Co. has released initial expectations relating to BioMar's financial performance. The projections for 2026 illustrate a promising growth trajectory, expecting volumes to reach between 1,600 and 1,670 thousand tonnes, with an anticipated growth rate of 2-7% compared to 2025.
Revenue and EBIT Forecasts
Projected revenue for BioMar in 2026 is estimated to be between DKK 16,000 and 17,000 million, assuming foreign exchange rates remain stable and raw material prices remain at current levels. Furthermore, EBIT (Earnings Before Interest and Taxes) is anticipated to range between DKK 1,100 and 1,200 million, accounting for depreciation and amortization approximating DKK 400 million. This forecast aligns closely with the company's historical performance and market positioning.
Investment and Capital Expenditure Plans
In terms of capital expenditures, BioMar is projected to allocate between DKK 300 and 500 million. This level of investment is notably higher than historical averages, primarily due to a prospective expansion in Ecuador, which is expected to require an investment of around DKK 250 million. This planned investment underscores BioMar's commitment to enhancing its operational capability and market reach.
Long-Term Goals Through 2030
Looking further ahead, BioMar has set ambitious long-term growth targets. By 2030, the company aims to achieve an average volume growth of 4-6% annually. Additionally, it has set a target for EBIT growth at an annual average of 8-10%. These targets are indicative of BioMar's dedication to driving efficiency and profitability while ensuring a return on invested capital (ROIC), including goodwill, exceeding 20%.
Strategic Capital Structure
As an independent entity, BioMar is focused on establishing a robust capital framework. The target capital structure is defined as having net interest-bearing debt to EBITDA in the range of 1.0 to 2.0 times. Accompanying this goal, BioMar is developing a dividend policy eventuating in a payout of at least 50% of the annual net profit, aligning shareholder interests with the company's financial health.
Concluding Thoughts
As BioMar braces for significant changes and opportunities in the upcoming years, the focus remains on sustainable growth and value creation for its shareholders. The company's ongoing evaluations and proactive planning reflect its commitment not only to operational excellence but also to long-term financial prosperity.
For further inquiries, please contact:
Aktieselskabet Schouw & Co.
Jørgen Dencker Wisborg, Chairman
Jens Bjerg Sørensen, President, tel. +45 8611 22 22
Frequently Asked Questions
What is the purpose of BioMar's potential listing?
The potential listing aims to enhance shareholder value and ensure BioMar is well-positioned for future growth opportunities.
What growth rates does BioMar project for 2026?
BioMar anticipates a volume growth rate of 2-7% in 2026 compared to 2025.
How much capital does BioMar plan to invest?
The company projects a capital expenditure between DKK 300 and 500 million, partly for expansion in Ecuador.
What are BioMar's long-term EBIT growth targets?
BioMar aims for an EBIT growth rate of 8-10% per annum toward 2030.
What is BioMar's planned dividend policy?
BioMar intends to allocate at least 50% of its annual net profit as dividends to its shareholders.
