Borregaard ASA (FRA:BO4) Q3 2024 Earnings Call Highlights: Strong Performance in Biosolutions ...

GuruFocus News
4 min read

In This Article:

  • EBITDA: NOK524 million, up from NOK482 million in the same quarter last year.

  • EBITDA Margin: 27%, close to last year's all-time-high margin.

  • Earnings Per Share (EPS): NOK2.51, compared to NOK2.38 last year.

  • Operating Revenues: Increased by 14% compared to the third quarter of 2023.

  • Biosolutions Sales Volume: Increased by 7% from the same quarter last year.

  • Biosolutions EBITDA: NOK271 million, an improvement of NOK36 million.

  • Biosolutions EBITDA Margin: Increased by close to 2 percentage points to 26.3%.

  • Biomaterials Sales Volume: Increased from below 35,000 tonnes to about 41,000 tonnes.

  • Biomaterials EBITDA: NOK131 million, compared with NOK161 million last year.

  • Fine Chemicals Operating Revenues: Increased by 24% compared to last year.

  • Fine Chemicals EBITDA: NOK122 million, an all-time-high result for this segment.

  • Fine Chemicals EBITDA Margin: Increased to 50%, about 6 percentage points above last year.

  • Cash Flow from Operating Activities: NOK391 million in the third quarter.

  • Investments: NOK287 million, including NOK150 million in Alginor.

  • Net Interest-Bearing Debt: Reduced by NOK97 million in the quarter.

  • Equity Ratio: 56% at the end of the third quarter.

  • Leverage Ratio: 1.15 (net interest-bearing debt over EBITDA).

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Borregaard ASA (FRA:BO4) reported an increase in EBITDA to NOK524 million, up from NOK482 million in the same quarter last year, driven by increased sales volume in biosolutions.

  • The fine chemicals segment delivered a strong performance with significantly higher deliveries in bioethanol and a favorable product mix for pharmaceutical intermediates.

  • The company announced a capacity increase at the biorefinery in Sarpsborg, with an investment of NOK490 million, expected to deliver a 5% to 10% capacity increase by 2027.

  • Operating revenues in biosolutions increased by 8% compared to the third quarter last year, mainly due to higher sales volume in agriculture.

  • Borregaard ASA (FRA:BO4) maintained a strong financial position with an equity ratio of 56% and a leverage ratio of 1.15.

Negative Points

  • Increased wood costs and general cost inflation offset the higher sales volume, impacting the overall financial performance.

  • Biomaterials segment experienced a lower result despite higher deliveries and price increases, due to increased wood costs and operating expenses.

  • The biovanillin market remains challenged by a high supply of synthetic vanillin products, affecting sales.

  • The company anticipates seasonal increases in energy consumption and energy-related raw material prices as winter approaches.

  • Net currency effects were slightly positive but largely offset by increased hedging losses, impacting the financial results.

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