Aker Biomarine Asa · OSL:AKBM
Aker Biomarine Asa — Q4 2024 Earnings Presentation
28 slides from Aker Biomarine Asa's earnings presentation, Feb 12, 2025
Slide 1: Fourth Quarter 2024
Fourth Quarter 2024 Aker BioMarine ASA 12 February 2025
Slide 2: Q4 2024 highlights
Q4 2024 highlights ▪ Fourth quarter ▪ Revenues of USD 52.0 million (up 7% YoY) ▪ Adjusted EBITDA of USD 7.4 million (up from USD 2.5 million last year) ▪ Full year 2024 TBU ▪ Revenues of USD 199.0 million (up 1% YoY) ▪ Adjusted EBITDA of USD 29.0 million, (up 37% YoY) ▪ Fourth quarter segment highli
Slide 3: Quarterly revenue and Adjusted EBITDA
Quarterly revenue and Adjusted EBITDA Pro forma excluding Feed Ingredients, unaudited Revenue Adjusted EBITDA1 USDm USDm +7% +196% 52.0 8.4 48.8 48.5 49.2 49.3 7.7 7.4 6.0 2.5 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 3 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. Th
Slide 4: Annual revenue and Adjusted EBITDA
Annual revenue and Adjusted EBITDA Pro forma excluding Feed Ingredients, unaudited Revenue Adjusted EBITDA1 USDm USDm +1% +37% 196.3 199.0 29.0 21.1 2023 2024 2023 2024 4 1) Aker BioMarine evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit before depreciat
Slide 5: Operations
Operations
Slide 6: Human Health Ingredients
Human Health Ingredients Revenue1 (USDm) +25% 25.5 24.6 25.5 22.4 20.5 ▪ Revenues increased 25% YoY ▪ Krill oil sales with 15% YoY growth ▪ Krill oil gross margin 57% ▪ Stable development in EBITDA margin despite higher sales of low margin products 4Q23 1Q24 2Q24 3Q24 4Q24 ▪ The Houston plant had go
Slide 7: Strong krill oil revenue growth since turnaround
Strong krill oil revenue growth since turnaround Krill oil revenue1 (USDm) Commercial strategy # Active customers 312 323 340 ▪ Consistent growth since turnaround plan was +25% launched in 2022 86 ▪ Multiple regions contributing significantly to sales 79 ▪ Selling more to existing customers, but hav
Slide 8: Growth driven by continuous launch of new krill products in the market
Growth driven by continuous launch of new krill products in the market, even in a mature market like USA USA, % of Omega 3 Products by Keyword in Label 1) Global krill oil products launched 2) Recent growth mainly driven 100 100 100 100 100 100 100 by APAC and EU 4% 3% 4% 6% 5% 5% 6% 9% 3% 6% 78% 73
Slide 9: Consumer Health Products
Consumer Health Products Revenue and gross margin 1 (USDm) -4% 30.5 29.1 29.2 26.1 25.0 ▪ Q4’24 sales were slightly below Q4’23 sales 23% 23% 22% 21% 20% ▪ Fairly good demand from retailers ▪ Margin improved QoQ on the back of good cost control ▪ Underlying improvement in out of store sales, however
Slide 10: Emerging Business
Emerging Business Revenue1 (USDm) +5% 3.1 2.3 2.2 2.1 2.1 ▪ Increased sales primarily driven by online sales at Amazon as well as Walgreens and Sam’s ▪ Out of store sales (POS) for Epion’s major US retailers (excl. Costco) was 15% up quarter on quarter 4Q23 1Q24 2Q24 3Q24 4Q24 ▪ Chinese partner offi
Slide 11: Financials
Financials
Slide 12: Profit & loss
Profit & loss USD million Q4 2024 Q4 2023 (Unaudited) (Unaudited) FY 2024 FY 2023 (Unaudited) (Unaudited) Net sales ▪ Net sales up 7% from Q4-23. The Consumer health segment is down 4%. Net Net sales 52.0 48.8 198.9 196.3 sales in the Human segment up 25% due to higher volume of Superba and a broade
Slide 13: Non-operational segment: Elim / other (Corporate cost)
Non-operational segment: Elim / other (Corporate cost) SG&A1 including non-recurring costs (USDm) 10.1 7.9 ▪ SG&A impacted by cost from ongoing improvement 6.6 and restructuring programs 4.1 ▪ Total adjustment item of USD 2.8 million in the quarter related to restructuring of the company following t
Slide 14: Restructuring and improvement program
Restructuring and improvement program ▪ Following the demerger of Feed Ingredients, Headcount in AKBM post Feed Ingredients demerger* AKBM initiated a comprehensive Restructuring Program focused on organizational, operational, and financial efficiencies 179 164 ▪ Key Initiatives: ~30 ~15 ▪ Strengthe
Slide 15: Working capital
Working capital Change in net working capital (USDm) 114 108 14 6 14 ▪ Lower inventory, as Nutra raw material purchased in Q3 were consumed in Q4, lower inventory in Lang NWC Q3’24 Inventory Receivables Payables NWC Q4’24 and other and other ▪ Reduction in both receivables and payables, following th
Slide 16: Investments
Investments Cash flow from investments (USDm) Protein launch plant ▪ Mainly related to acquisition of production equipment Maintenance and development capex and capitalization of development projects in Houston Adjustment development capex 5.7 ▪ Continued investment in algae production process to op
Slide 17: Cash flow in quarter
Cash flow in quarter Cash flow in the quarter (USDm) ▪ Cash flow from operations of USD -1.7 million ▪ Mainly interest payments and transaction costs OCF of USD -1.7 million ▪ Cash flow from investing ▪ Mainly on Houston production related equipment and capitalization of development projects 3 6 ▪ C
Slide 18: Interest-bearing debt
Interest-bearing debt Interest-bearing debt (USDm) Including Feed Ingredients 5.5x ▪ Net interest-bearing debt of USD 145 million 5.1x 5.0x 4.7x 395 ▪ Around USD 15m of payables related to transaction expenses 404 4.3x and purchase price adjustments to be settled in Q1’25 393 28 32 20 ▪ NIBD/Adj. EB
Slide 19: Balance sheet
USD million Q4 2024 Q4 2023* Balance sheet (Unaudited) (Audited) ASSETS Property, plant and equipment 68.1 341.5 Property. plant and equipment Right to use assets 2.6 9.1 ▪ Mainly capitalization of Houston production related equipment. Intangible assets and goodwill 104.3 155.4 Contract cost 1.2 3.2
Slide 20: Summary and Outlook
Summary and Outlook
Slide 21: Summary and outlook
Summary and outlook ▪ Build on solid fundament for continued growth in Human Health Ingredients ▪ Consumer Health Products expects to return to year-over-year revenue growth ▪ Emerging Business scaled towards cash break-even ▪ Strengthening Aker BioMarine through execution of the improvement and res
Slide 22: Q&A
Q&A To submit questions, please send to ir@akerbiomarine.com 22
Slide 23: Appendix
Appendix
Slide 24: Cash flow
Cash flow USD million- Q4 2024 Q4 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cash flow from operations ▪ Negative cash flow from operations Net profit (loss) after tax -14.8 9.9 181.5 -9.0 ▪ Interest paid includes interest on bond amounting to USD 3.6 mill Tax expenses -0.7 -25.1
Slide 25: Alternative Performance Measures (APMs)
ALTERNATIVE PERFORMANCE MEASURES (APMs) 4Q’24 Year USD million 2024 2023 2024 2023 Net profit (loss) from continued operations -8.0 -16.7 -11.5 -31.8 Tax expense -0.7 -0.1 -0.1 - Net financial items 5.4 8.9 5.1 21.9 Operating profit (loss) -3.2 -7.9 -6.5 -9.9 Depreciation, amortization and impairmen
Slide 26: Cost rightsizing
Illustration of earnings potential in value creation plan Illustrative EBITDA2) buildup at stable production EBITDA contribution sensitivity The sensitivity table assumes sales volume equal production volume, such that revenue and associated production costs are scaled 3 accordingly. Starting point
Slide 27: Important information
Important information This presentation has been prepared by Aker BioMarine ASA (the "Company"). The presentation does not constitute or form part of, and should not be construed as, an offer, solicita tion or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Compan
Slide 28: Aker BioMarine
») AKER BIOMARINE