Quarterly Report • Nov 1, 2024
Quarterly Report
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Aker BioMarine is a leading biotech innovator developing krill-derived products for consumer health and wellness. The company has a strong industry position and is the world's leading producer of human ingredients from krill, the natural, powerful and health promoting source of nutrients from the pristine waters of Antarctica.
Aker BioMarine consist of three segments today.
1) Human Health Ingredients including Superba, Lysoveta, PL+ Algae and our Houston manufacturing plant. The segment sells B2B krill oil supplements to nutritional brands for humans around world.
2) Consumer Health Products including Lang Pharma Nutrition, a producer and distributor of private labels within the vitamin and supplement categories to the largest retailers in the US market.
3) Emerging Businesses, including Epion, Aker BioMarine's consumer brand company that sells our own krill oil brand, Kori krill oil to the largest retailers in the US and Aion AS, a circular plastic company.
Feed Ingredients including Qrill Aqua and Pet, harvesting operations in Antarctica and the Uruguay distribution hub. The segment sells krill meal as marine ingredients into the aqua and pet industry globally. The segment was classified as held for sale and discontinued operations from the second quarter 2024 due to the sales process that was closed on 3 September.
Understory Protein a novel protein product developed for the B2B sports segment. Classified as held for sale and discontinued operations from the third quarter 2024 due to ongoing sales process.
Aker BioMarine is committed to have a positive impact on human health, without compromising the health of the planet. We aim to deliver krill products that support nutritious and sustainable diets and have set a path towards 50% reduction of CO2-emissions intensity by 2030, with the longterm target being carbon neutral by 2050 (including discontinued operations). Aker BioMarine has entered into a long-term contract with Feed Ingredients for the supply of krill raw materials for its Human Health Ingredients business.
| Third Quarter | YTD | Year | |||
|---|---|---|---|---|---|
| USD million | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net sales | 49.3 | 52.9 | 147.0 | 147.5 | 196.7 |
| Gross margin | 31% | 34% | 34% | 37% | 37% |
| Operating profit (loss) | 0.5 | 1.6 | -3.3 | -2.0 | -9.9 |
| Net profit (loss) from continued operations | 3.5 | -6.4 | -3.5 | -15.1 | -31.8 |
| Net profit (loss) from discontinued operations | 204.0 | 7.5 | 199.8 | -3.8 | 22.8 |
| Net profit (loss) | 207.5 | 1.1 | 196.3 | -18.9 | -9.0 |
| Adjusted EBITDA1 | 8.4 | 7.6 | 21.6 | 18.6 | 21.6 |
| Cash flow from operations | 3.4 | 20.3 | 4.6 | 0.1 | 47.4 |
| Cash flow related to CAPEX | -1.8 | -9.9 | -10.2 | -24.9 | -49.3 |
| Equity | 189.7 | 357.0 | 189.7 | 357.0 | 366.5 |
| Total assets | 409.0 | 815.3 | 409.0 | 815.3 | 827.1 |
| Net interest bearing debt | 135.3 | 387.9 | 135.3 | 387.9 | 365.5 |
1 See Note 3 and separate disclosure covering the Aker BioMarine Group's use of Alternative Performance Measures (APMs).
Aker BioMarine completed a company restructuring end of 2023 and changed its reporting format according to the new business segments starting in Q1 2024. The previous two segments (Ingredients and Brands) were deconsolidated into four new segments; Feed Ingredients, Human Health Ingredients, Consumer Health Products and Emerging Businesses. After the sale of the Feed Ingredients business on 3 September 2024, the Group now consists of three segments.
Sales in the segment were at USD 24.6 million in the quarter, up 8% from the same period last year. The Superba sales continue to improve across several regions with volumes being up 11% year over year, but prices somewhat lower than normal due to product and customer mix. The quarter showed good year over year growth in particularly China and Europe. In Europe, a new distribution agreement was signed with Barentz International, formalizing a long-term partnership where Barentz is looking to expand the krill footprint in Europe.
The Houston plant produced lower volumes than expected in the quarter as a result of bad weather (hurricane Beryl). However, sufficient levels are produced and stored for sale and safety stock. The effect of this shift in production from Q3 to Q4 will be a somewhat reduced Superba krill oil margins this year, and equally higher margins start of next year.
The production of the FloraMarine algae product continues, and another ~35 MT was produced in Houston in the quarter. Production capacity is currently being expanded to meet growing demand. The company sold 16 MT of algae oil in Q3.
For Lysoveta, the company sold its first commercial batch, marking an important step in the market introduction.
From first quarter 2024, sales of the Houston by-product, QHP (Qrill High Protein), is recognized as part of the Human segment, but reported separately from the krill oil sales. For third quarter the QHP sales were USD 1.2 million. The QHP product carries a lower gross margin than Superba krill oil, and hence will dilute the overall margins for the segment.
Following the sale of Feed Ingredients, the Human segment will purchase Nutra meal from the Feed Ingredients as raw material for the Superba production at a fixed price with an annual index regulation. The Human segment purchased 5,650 MT of Nutra for USD 3,500 per MT including freight in the third quarter.
The segment reported an Adjusted EBITDA of USD 9.9 million in the quarter, marginally up from USD 9.5 million same period due to higher sales partly offset by lower margins on QHP and lower Superba price due to customer mix, leading to an EBITDA margin of 40% compared to 42% same period last year.
Lang Pharma Nutrition had sales of USD 29.1 million, down 5% compared to same quarter last year, but up 16% from Q2 2024. Third quarter last year was a record third quarter and included the roll-out of the Sam's Club's Multivitamin Gummy and strong promotional activity at Costco. Increased sales of krill and UCII in this quarter partly compensated for the Gummy launch last year. Gross margin remains on par with same period last year at 19.5%. POS (sales out of stores) showed growth of 2.8% YTD vs same period last year indicating that retailers have been selling out of their inventory levels. However, it is expected that this will turn once the retailers start to restock.
SG&A costs are down compared to the same quarter last year, mainly due to operational improvements. The segment reported an Adjusted EBITDA of USD 2.1 million in the quarter, down from USD 2.3 million same period last year. EBITDA margin was at 7%, equal to same period last year despite somewhat lower sales.
The segment reported USD 2.0 million in net sales from Kori krill oil which is 12% up compared to same period last year. This is mainly driven by increased online sales at Amazon as well as good growth at Walmart. Out of store sales (POS) for online Amazon sales continue to develop positively with a 22% growth this quarter compared to third quarter last year. POS for Epion's major US retailers (excl. Costco) was 4% up quarter on quarter.
Marketing spend in Epion for Kori in the quarter was USD 0.6 million. Official launch in Costco Japan took place in August, and Kori krill oil is now available in all Costco stores in Japan.
The company has launched a process to divest of the protein business and mandated a financial advisor to support the process. This follows the strategy already communicated where the focus going forward is growth of the two key segments: Human Health Ingredients and Consumer Health Products. As a result, the management is looking for other parties better equipped to further develop this business. The protein business is classified as held for sale in the financial accounts from the third quarter.
The segment reported an Adjusted EBITDA of USD -1.0 million in the quarter, an improvement from USD -1.9 million same period last year. The company is continuing to evaluate measures to reduce cost for the segment, where the planned sale of the protein assets will support this strategy.
Aker BioMarine ASA entered into an agreement with American Industrial Partners ("AIP") and Aker Capital ("Aker") in July for the sale of Aker BioMarine's ownership in the Feed Ingredients business to AIP and Aker Capital. The transaction was closed on 3 September.
The enterprise value of USD 590 million (on a cash and debt-free basis), was adjusted for normalized working capital and excess product inventory at closing leading to a preliminary purchasing price of USD 624 million before net debt items, and respectively USD 385.7 million after debt items. Net gain from the transaction amounts to USD 214.2 million after subtracting the net asset value of Feed Ingredients (including goodwill), transaction fees and other cost related to the Feed Ingredients segment. After settling the company's outstanding debt and transaction costs, the net cash proceeds to Aker BioMarine were USD 227 million.
During the quarter, Aker BioMarine has refinanced its debt with a 3-year NOK 1,600 million secured bond as well as a USD 30 million super senior bank facility, currently undrawn. The bond agreement carries a liquidity covenant of USD 7.5 million in available liquidity, and the bank facility carries a leverage covenant starting in Q4 2024 at 6.5:1 (net interest-bearing debt / 12 month Adjusted EBITDA).
As a result of the transaction and the refinancing, the company paid out an extraordinary dividend of 45 NOK/share on 30 September.
Following the transaction, Aker BioMarine will be a focused human health and nutrition company consisting of three business units: (1) Human Health Ingredients (2) Consumer Health Ingredients and (3) Emerging Businesses. Aker BioMarine has entered into a long-term contract with Feed Ingredients for the supply of krill raw materials for its Human Health Ingredients business.
| Unit | Q3-23 | Q4-23 | Q1-24 | Q2-24 | Q3-24 | 2023 | |
|---|---|---|---|---|---|---|---|
| Krill oil revenue (Superba + PL+) | USD mill. | 20.9 | 19.3 | 20.2 | 21.4 | 22.1 | 79.1 |
| Other human ingredients revenue (Algae and QHP) | USD mill. | 1.8 | 1.7 | 2.0 | 4.0 | 2.5 | 5.1 |
| Consumer Health Products revenue (Lang) | USD mill. | 30.8 | 30.5 | 26.1 | 25.0 | 29.1 | 122.2 |
| Emerging Businesses revenue | USD mill. | 1.8 | 2.1 | 3.1 | 2.3 | 2.0 | 11.1 |
1Related to discontinued operations
With the Feed Ingredients segment sold and classified as discontinued business, financial figures for Feed Ingredients in the quarter are reported as a net line item in the P&L for July and August under net profit. In the cash flow statement Feed Ingredients figures are fully incorporated for July and August. The balance sheet excludes Feed Ingredients as the segment was sold before quarter end.
Revenue in the quarter was USD 49.3 million, down 7% from the same period last year. Sales in the Human Health Ingredients were up from last year, but this was offset by larger internal eliminations of Group sales between Human Health Ingredients and Lang Pharma than same period last year.
Adjusted EBITDA in the quarter was USD 8.4 million, up from USD 7.6 million same period last year. The increase is driven by improved performance in the Emerging Businesses segment as Epion has increased sales and lowered SG&A cost, mainly through reduced marketing spend. Human Health Ingredients reports an Adjusted EBITDA slightly above last year at USD 9.9 million, and Lang reports an Adjusted EBITDA of USD 2.1 million, down from USD 2.3 million last year due to somewhat lower sales, partly compensated by lower SG&A cost.
EBITDA adjustments of USD 4.4 million for the quarter include costs related to improvement and restructuring programs as well as impairment, and other non-recurring inventory adjustments. Costs and fees directly attributable to the Feed Ingredients transaction are recognized as discontinued operations as part of 'Net profit (loss) from discontinued operations.
Gross margin for the Group was 31%, down from 34% same period last year, mainly due to the above-mentioned inventory effects in the Corporate segment that is partly offset by the margin increasing from 30% to 48% for Kori krill oil in the Emerging Businesses. Gross margin for the Human Health Ingredients segment was 47%, a slight reduction compared to same quarter last year due to margin dilution from non-krill oil products like algae and QHP (Qrill High Protein), and lower Superba price due to customer mix. The gross margin for the Consumer Health Product segment was on par with same quarter last year.
Underlying SG&A for the group in the quarter is on par with third quarter last year. Both Epion and Lang have reduced its SG&A cost base compared to last year, offset by higher corporate SG&A as the Group carries an over-proportional cost as a result of the exit of the Feed Ingredients segment. About USD 1.3 million of the Group's SG&A cost on an annual basis has been allocated to Feed Ingredients for the quarter and is part of net profit from discontinued operations. An ongoing cost restructuring program is currently reviewing all remaining corporate activities to scale cost to a more sustainable level for the remaining company. The Consumer Health Products segment has all their corporate cost embedded in their segment figures as Lang is a fully autonomous entity.
| Third quarter 2023 | ||||||
|---|---|---|---|---|---|---|
| Human | Other/elim | |||||
| Health | Consumer | Emerging | (continued | |||
| USD million | Ingredients | Health Products | Businesses | operations) | Total | |
| EBITDA | 48.9 | 1.9 | -1.9 | -41.9 | 6.9 | |
| Adjustment items | -39.4 | 0.4 | - | 39.7 | 0.7 | |
| Adjusted EBITDA | 9.5 | 2.3 | -1.9 | -2.2 | 7.6 |
Total interest-bearing debt was at USD 150.2 million. Cash amounted to USD 14.9 million, implying net interest-bearing debt of USD 135.3 million after the refinancing of all company debt as a result of the Feed Ingredients transaction.
Cash flow from operations was positive by USD 3.5 million in the quarter due to positive operating result and a positive change in working capital. Cash flow from investing activities was positive USD 406.4 million and includes sales proceeds from the Feed Ingredients transaction. Cash flow from financing activities was negative USD 414.6 million including dividend paid of USD 373.2 and repayment of debt. Net cash flow in the quarter was negative USD 4.8 million.
As of 31 September, total available liquidity was USD 44.9 million, consisting of cash and available amounts under the new bank facility.
The company is within the liquidity covenant of USD 7.5 million in available liquidity.
Net profit for the quarter was USD 207.5 million a result of the net gain from the Feed Ingredients transaction.
Total equity was USD 189.7 million, implying an equity ratio of 46%.
Aker BioMarine works closely with all stakeholders to ensure the well-being of people, environment, and communities in vicinity of our operations. In response to the evolving reporting requirements with CSRD, new segment structure and the sale of the Feed Ingredients segment, Aker BioMarine has embarked on a review of the Company's ESG ambitions to be finalized in 2024. The company is working on process optimization and energy efficiency measures to reduce the CO2 intensity including scope 1,2 and 3.
Sick leave rates are low at the factory in Houston and in the office locations.
Aker BioMarine is committed to a goal of zero harm to people and the environment, and our targets are supported by a forward leaning HSSE roadmap designed for continuous performance improvement. Ultimately, HSSE is all about keeping our people safe at all times, in everything we do and wherever we are in the world.
The company is preparing for compliance with the Corporate Sustainability Reporting Directive (CSRD) and will start to report according to this framework for the financial year 2025.
| Unit | Q4-23 | Q1-24 | Q2-24 | Q3-24 | LTM | ||
|---|---|---|---|---|---|---|---|
| CO2 per group revenue1 | Kg/USD | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |
| Lost Time Injuries (LTI)2 | Amount | - | - | - | - | - | |
| Sick leave3 | Percent | 0.8 % | 1.0 % | 2.1 % | 1.5 % | 1.4 % |
1 From 2024 the group has started reporting on CO2 per group revenue (kilograms per USD) instead of CO2 per tons qrill meal produced. Historical figures are updated in according to new reporting. CO2 emissions include Scope 1, 2 and 3. The group revenue excludes revenues from discontinued operations.
2 LTI: any injury that causes the person to be off work the following day.
3Sick leave: all sites for continuing operations, excluding North America.
The company is exposed to market, commercial, operational, regulatory, financial, transactional and liquidity risks that affect the assets, liabilities, available liquidity, and future cash flows. The company's largest risks are fluctuations in sales volumes, product quality, ability to develop new products, and market and price risk for sale of products.
The company is also exposed to climate risk, and the exposure is assessed using the TCFD framework. Access to krill as raw material including climate changes affecting the krill biomass could significantly affect the business long term. In addition, climate changes creating a more challenging operational environment for the onshore plant in Houston could significantly impact the company's ability to operate effectively.
The company has adopted a risk management policy to identify, measure, and mitigate risks. For a more detailed discussion on risk, see the Annual Accounts 2023; Operational Risk and Opportunities chapter and Note 20 (Financial risk).
According to the NBJ Supplement Business Report from 2023, the global nutrition market is expected to continue its positive trend of 4% annual growth on the back of a growing middleclass in emerging markets and increased focus on a healthy lifestyle globally. Most governments recommend their population to increase their intake of Omega-3s, which will continue to drive increased adoption. With the company's differentiated and documented Omega-3 offering we expect a higher market share in the expanding Omega-3 market.
Long term Superba sales is expected to grow across most sales regions at stable prices, but affected by product and customer mix. Several Asian markets are expected to demonstrate high annual sales growth over the next years, whereas other more mature regions trend closer to gross domestic product growth.
Product portfolio expansions PL+, Algae and Lysoveta will enable growth outside the core Superba products and beyond krill. Houston will have enough capacity to supply required krill and algae oil volumes short to medium term, and the company has identified debottlenecking initiatives for the longer term.
Based on an increased Superba sales, the production at the Houston facility will ramp up. This would drive a gradual margin improvement throughout the year with full effect expected from 2025 onwards.
The private label market in the US follows the positive trends of the human health ingredients market with a general increased focus among retailers on private label offerings to compete with the growing e-commerce market. Retailers have been building down inventories impacting shipments negatively in the first half of 2024. However, the company expects this trend to change in the near future as out of store sales have been higher than last year indicating increased need for inventory build-up.
Growth will be driven by private label product innovation across the major US retailers. New product categories and new retailers are key drivers for future growth.
The ambition is to turn loss making business units into profitable companies. We expect losses to be significantly reduced in 2024.
Meanwhile, we will consider partnerships and other types of transactions to the extent we can accelerate that objective and create more competitive units that can grow profitably at higher rates. The protein business is classified as held for sale from this quarter as a sale is expected within the next 12 months.
All major capital projects have been completed, and 2024 maintenance capital expenditures will be related to certain improvement projects in Houston and Ski, totaling USD 5-8 million for the full year. In addition, development capex for the Understory plant in Ski amounts to USD 5-7 million for the year. The plant is part of the Protein business that is now classified as held for sale.
A selection of the posts below can be found at www.akerbiomarine.com/news
| 3 July | Aker BioMarine ASA – Agreement to sell its ownership position in Feed Ingredients Aker BioMarine ASA ("Aker BioMarine") today announced that it has entered into an agreement with American Industrial Partners ("AIP") and Aker Capital ("Aker") for the sale of Aker BioMarine's ownership position in the Feed Ingredients business, based on an enterprise valuation of USD 590 million (around NOK 6.3 billion). The acquiring parties are AIP and Aker Capital through a newly established company owned 60% by AIP and 40% by Aker Capital |
|---|---|
| 29 August | Successful placement of senior secured bonds Aker BioMarine ASA ("AKBM") has successfully completed a new bond issue of NOK 1,600 million, carrying a coupon of 3 months NIBOR +4.25% p.a. with quarterly interest payments. The bond issue was oversubscribed. |
| 3 September | Completion of Feed Ingredients transaction On July 3, 2024, Aker BioMarine ASA announced that it had entered into an agreement with American Industrial Partners and Aker Capital AS for the sale of its ownership stake in the Feed Ingredients business. On August 5, 2024, the company informed that the transaction had received clearance from all relevant competition authorities, and today, the share sale has been completed. |
| 5 September | Declaration of extraordinary dividend The Board of Directors has today resolved to distribute an extraordinary dividend of NOK 45 per share. |
| 14 October | Aker BioMarine signs a strategic partnership agreement with Barentz International B.V. Aker BioMarine is pleased to announce a new distribution agreement with global specialty ingredients solution provider Barentz International B.V., to further expand its reach across Europe. As experts in human nutrition, together, Barentz and Aker BioMarine will bring high-quality, sustainable krill oil products to customers in Italy, San Marino, Belgium, Netherlands, and Luxembourg. |
| 5 July | Breakthrough study demonstrates positive effects of krill oil to improve osteoarthritis of the knee A study conducted by CSIRO, Australia's national science agency, across three clinical trial sites in Australia, and sponsored by Swisse's H&H Research, investigated the effects of krill oil on adults suffering from mild to moderate knee osteoarthritis (OA). The six-month rigorously designed clinical trial concluded that Swisse High Strength Deep Sea Krill Oil (Superba™ BOOST krill oil phospholipids) was safe to consume and resulted in improvements in knee pain, stiffness and physical function in adults with mild to moderate knee OA. |
|---|---|
| 15 July | Study shows krill oil improves Omega-3 deficiency in Lupus patients A new study, published in Lupus Science & Medicine, shows that phospholipid-rich krill oil supplementation (Superba Boost krill oil) helped to increase Omega-3 Index significantly among patients with systemic lupus erythematosus compared with the control group within the first month of supplementation. |
| 23 August | New Science Unlocks the True Potential of Krill Oil for Skin Health Results from two randomized, double-blind, placebo-controlled, pilot studies show that krill oil supplementation strengthens skin barrier function and improves hydration and elasticity of the skin in healthy adults. |
| Third Quarter | Year to date | Year | ||||
|---|---|---|---|---|---|---|
| USD million | Note | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net sales | 2 | 49.3 | 52.9 | 147.0 | 147.5 | 196.7 |
| Cost of goods sold | 2 | -34.1 | -34.8 | -96.7 | -93.2 | -123.8 |
| Gross profit | 15.2 | 18.1 | 50.3 | 54.3 | 72.9 | |
| Selling, general and administrative expense | 2 | -12.7 | -12.5 | -43.0 | -44.5 | -66.4 |
| Depreciation, amortization and impairment | 2, 4, 5 | -2.2 | -4.1 | -11.8 | -12.0 | -16.3 |
| Other operating income | 2 | 0.3 | 0.1 | 1.2 | 0.1 | -0.1 |
| Operating profit (loss) | 0.5 | 1.6 | -3.3 | -2.0 | -9.9 | |
| Net financial items | 2.8 | -6.9 | 0.4 | -13.0 | -21.9 | |
| Tax expense | 0.2 | -1.1 | -0.6 | -0.1 | - | |
| Net profit (loss) from continued operations | 3.5 | -6.4 | -3.5 | -15.1 | -31.8 | |
| Discontinued operations | ||||||
| Net profit (loss) from discontinued operations | 8, 9 | 204.0 | 7.5 | 199.8 | -3.8 | 22.8 |
| Net profit (loss) | 207.5 | 1.1 | 196.3 | -18.9 | -9.0 | |
| Earnings per share to equity holders of Aker BioMarine ASA | ||||||
| Basic - continued operations | 0.04 | -0.07 | -0.04 | -0.17 | -0.36 | |
| Diluted - continued operations | 0.04 | -0.07 | -0.04 | -0.17 | -0.36 | |
| Basic - discontinued operations | 2.33 | 0.09 | 2.28 | -0.04 | 0.26 | |
| Diluted - discontinued operations | 2.33 | 0.09 | 2.28 | -0.04 | 0.26 |
| Third Quarter | Year to date | Year | ||||
|---|---|---|---|---|---|---|
| USD million | Note | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net profit (loss) | 207.5 | 1.1 | 196.3 | -18.9 | -9.0 | |
| Change in fair value cash flow hedges - discontinued operations | - | 3.4 | - | -3.1 | -3.3 | |
| Total items that will be reclassified to profit and loss | - | 3.4 | - | -3.1 | -3.3 | |
| Total other comprehensive income (loss) | - | 3.4 | - | -3.1 | -3.3 | |
| Total comprehensive income (loss) | 207.5 | 4.5 | 196.3 | -22.0 | -12.3 |
| USD million | Note | As of 30.09.2024 | As of 30.09.2023 | As of 31.12.2023 |
|---|---|---|---|---|
| ASSETS | ||||
| Property, plant and equipment | 4 | 66.4 | 327.8 | 341.5 |
| Right to use assets | 3.1 | 9.9 | 9.1 | |
| Intangible assets and goodwill | 5 | 105.9 | 158.5 | 155.4 |
| Contract cost | 1.7 | 4.2 | 3.2 | |
| Deferred tax asset | 4.9 | 3.4 | 25.0 | |
| Other interest-bearing non-current receivables | 3.3 | 2.4 | 2.7 | |
| Investments in equity-accounted investees | - | 8.6 | 0.1 | |
| Total non-current assets | 185.3 | 514.7 | 537.0 | |
| Inventories | 6 | 110.3 | 183.2 | 183.7 |
| Trade receivable and prepaid expenses | 60.3 | 91.3 | 71.5 | |
| Derivative assets | 7 | 0.5 | 7.3 | - |
| Current interest-bearing receivables | 0.3 | - | 0.3 | |
| Cash and cash equivalents | 14.9 | 18.7 | 27.5 | |
| Total current assets | 186.3 | 300.5 | 283.1 | |
| Assets held for sale | 9 | 37.4 | - | 7.1 |
| Total assets | 409.0 | 815.3 | 827.1 | |
| LIABILITIES AND OWNERS' EQUITY | ||||
| Share capital | 75.9 | 75.9 | 75.9 | |
| Other paid-in equity | 493.9 | 493.9 | 493.8 | |
| Total paid-in equity | 569.8 | 569.8 | 569.7 | |
| Translation differences and other reserves | 0.1 | 0.4 | 0.1 | |
| Retained earnings | -380.3 | -213.2 | -203.3 | |
| Total equity | 189.7 | 357.0 | 366.5 | |
| Interest-bearing debt | 150.2 | 346.9 | 344.0 | |
| Deferred tax liability | 8.4 | 7.6 | 3.7 | |
| Other non-interest-bearing non-current liabilities | - | 0.1 | - | |
| Total non-current liabilities | 158.6 | 354.7 | 347.7 | |
| Interest-bearing current liabilities | - | 59.7 | 49.0 | |
| Accounts payable and other payables | 56.4 | 44.0 | 63.9 | |
| Total current liabilities | 56.4 | 103.7 | 112.9 | |
| Liabilities held for sale | 9 | 4.4 | - | - |
| Total liabilities | 219.3 | 458.4 | 460.6 | |
| Total equity and liabilities | 409.0 | 815.3 | 827.1 |
| Third Quarter | Year to date | Year | ||||
|---|---|---|---|---|---|---|
| USD million | Note | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net profit (loss) after tax | 207.5 | 1.1 | 196.3 | -18.9 | -9.0 | |
| Tax expenses | -0.2 | 1.1 | 0.6 | 0.1 | -25.0 | |
| Net interest and guarantee expenses | 5.4 | 8.2 | 22.3 | 23.1 | 31.0 | |
| Interest paid | -2.6 | -8.6 | -20.6 | -22.7 | -29.7 | |
| Interest received | 1.9 | 0.8 | 3.9 | 1.3 | 2.2 | |
| Taxes paid | - | -1.2 | - | -1.2 | -0.7 | |
| Share of earnings in associated companies | - | 1.6 | - | 1.6 | 3.0 | |
| Other P&L items with no cash flow effect | - | - | - | - | -0.1 | |
| Impairment charges | 0.5 | - | 0.5 | - | 0.5 | |
| Gain sale of subsidiaries | -214.2 | - | -214.2 | - | - | |
| Cost allocated to discontinued operations | -22.3 | - | -22.3 | - | - | |
| Depreciation and amortization | 3.0 | 13.7 | 37.0 | 38.9 | 52.3 | |
| Foreign exchange loss (gain) | 0.1 | -0.2 | - | -0.1 | - | |
| Change in accounts receivable, other current receivables, | 24.4 | 3.8 | 1.4 | -22.1 | 23.0 | |
| inventories, accounts payable and other | ||||||
| Net cash flow from operating activities | 3.4 | 20.3 | 4.6 | 0.1 | 47.4 | |
| Payments for property, plant and equipment | -1.5 | -7.5 | -9.5 | -21.7 | -45.9 | |
| Payments for intangibles | -0.4 | -2.4 | -0.7 | -3.2 | -3.4 | |
| New long-term receivable interest bearing | -0.2 | - | -0.2 | - | - | |
| New short-term receivable interest bearing | - | -0.2 | - | -0.2 | -0.3 | |
| Proceeds from sales of property,plant and equipments | - | - | - | - | 0.6 | |
| Proceeds from sale of subsidiaries and other equity investments | 413.2 | - | 413.2 | - | - | |
| Investments in subsidiary and associated companies | -1.1 | - | -1.1 | - | - | |
| Net cash from (to) funding of assets classified as held for sale | -3.6 | - | -3.6 | - | - | |
| Net cash flow from investing activities | 406.4 | -10.1 | 398.0 | -25.1 | -49.0 | |
| Proceeds from issue of debt and change in overdraft facility | -21.4 | -2.8 | -4.2 | -7.8 | -18.7 | |
| New long-term debt interest bearing | 148.4 | - | 148.4 | - | - | |
| Downpayment long-term debt interest-bearing | -165.4 | - | -165.4 | - | - | |
| Installments interest-bearing debt | -3.2 | -3.6 | -20.9 | -10.9 | -14.6 | |
| Proceeds from issue of external debt | - | - | - | 40.0 | 40.0 | |
| Net funds from issue of shares | - | - | - | 0.1 | - | |
| Paid dividend | -373.2 | - | -373.2 | - | - | |
| Net cash flow from financing activities | -414.6 | -6.4 | -415.3 | 21.4 | 6.7 | |
| Net change in cash and cash equivalents | -4.8 | 3.9 | -12.7 | -3.6 | 5.1 | |
| Cash and cash equivalents beginning of the period | 19.6 | 14.8 | 27.5 | 22.3 | 22.3 | |
| Cash and cash equivalents end of period | 14.9 | 18.7 | 14.9 | 18.7 | 27.4 |
| Share | Other paid-in | Other | Retained | |||
|---|---|---|---|---|---|---|
| USD million | Share capital | premium | capital | reserves | earnings | Total |
| Balance as of 1 January 2024 | 75.9 | 530.2 | -36.3 | -0.1 | -203.5 | 366.5 |
| Net profit (loss) | - | - | - | - | 196.3 | 196.3 |
| Other items | - | - | - | - | 1.0 | 1.0 |
| Total comprehensive income (loss) | - | - | - | - | 197.3 | 197.3 |
| Dividends | - | - | - | - | -373.2 | -373.2 |
| Change of ownership in subsidiaries | - | 0.1 | - | - | -1.2 | -1.1 |
| Total transactions with owners | - | 0.1 | - | - | -374.3 | -374.3 |
| Balance as of 30 September 2024 | 75.9 | 530.3 | -36.3 | -0.1 | -380.5 | 189.7 |
| Balance as of 1 January 2023 | 75.9 | 530.1 | -36.3 | 3.5 | -194.4 | 378.7 |
| Net profit (loss) | - | - | - | - | -20.0 | -20.0 |
| Other comprehensive income (loss) | - | - | - | -6.5 | - | -6.5 |
| Total comprehensive income (loss) | - | - | - | -6.5 | -20.0 | -26.5 |
| Capital Increase | - | 0.1 | - | - | - | 0.1 |
| Total transactions with owners | - | 0.1 | - | - | - | 0.1 |
| Balance as of 30 September 2023 | 75.9 | 530.2 | -36.3 | -3.1 | -214.4 | 352.3 |
| Balance as of 1 January 2023 | 75.9 | 530.1 | -36.3 | 3.5 | -194.4 | 378.7 |
| Net profit (loss) | - | - | - | - | -9.0 | -9.0 |
| Other comprehensive income (loss) | - | - | - | 4.6 | - | 4.6 |
| Total comprehensive income (loss) | - | - | - | 4.6 | -9.0 | -4.4 |
| Reclassification of hedge reserve to inventory | - | - | - | -8.2 | -8.2 | |
| Total other transactions | - | - | - | -8.2 | - | -8.2 |
| - | - | - | ||||
| Capital Increase Total transactions with owners |
- - |
0.1 0.1 |
- - |
- - |
- - |
0.1 0.1 |
| Balance as of 31 December 2023 | 75.9 | 530.2 | -36.3 | -0.1 | -203.5 | 366.5 |
Aker BioMarine ASA is a public limited company with the headquarters located in Norway. The condensed consolidated interim financial statements comprise Aker BioMarine ASA (the Company) and its subsidiaries (the Group). The Group is a global supplier of krill-derived products, with a fully owned supply chain. The operations span from harvesting krill in the Southern Ocean with vessels owned by the Group, distribution world-wide from Uruguay, and further processing into oil-products in the United States.
The Group's unaudited interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union. The condensed interim statements are prepared in compliance with the International Accounting Standard (IAS) 34 Interim Financial Reporting and should be read in conjunction with the consolidated financial statements that are part of the Annual Report for 2023. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
The Group's latest Annual Report can be found at https://www.akerbiomarine.com/investor.
In this report amounts have been rounded to the nearest million USD, unless otherwise stated. As a result of rounding differences, amounts may not add up to the total.
The preparation of the condensed interim financial statements according to IFRS requires management to make judgements, estimates and assumptions each reporting period. The main judgements, estimates and assumptions are described in the annual consolidated financial statements for 2023 (Note 1).
The significant judgements made by management in the preparation of this interim financial report were made applying the same accounting policies and principles as those described within the 2023 annual consolidated financial statements.
The following accounting principles supplement the Group's accounting principles disclosed in our recent annual report (2023).
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. As of 30 June 2024, the Feed Ingredients segment was classified as held for sale discontinued operations. As of 30 September 2024, Understory Protein is classified as held for sale and discontinued operations. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense. The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification. Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the income statement. The results from prior periods have been reclassified and included in net profit from discontinuing operations for all periods presented. Asset and liabilities related to discontinued operations have been presented separately from other assets and liabilities in the statement of financial position. The Statement of Financial Position is not re-presented for the comparative figures. The consolidated statements of cash flow have not been adjusted. The net cash flows attributable to the operating, investing and financing activities of discontinued operations is presented in note 8 and 9.
Disclosures for the Group's discontinued operations are provided for in Note 8 and 9. All other notes to this financial report for the second quarter of 2024 refer to the Group's continuing operations, unless the note explicitly states otherwise.
Elimination of internal profit in inventory for sales from the discontinued operation to the Group's continued operations is presented as part of net profit of discontinued operations.
The Group has completed the restructuring including new business units and segment reporting as communicated in June 2023. Starting from Q1 2024, the identified operating segments are the Feed Ingredients business, the Human Health Ingredients business, the Consumer Health Products business and the Emerging Businesses. In Q2 2024 the Feed Ingredient business was classified as held for sale. The 2023 segment figures have been adjusted to the new segment reporting (unaudited).
The Human Health Ingredients segment includies Superba, Lysoveta, Algae and our Houston manufacturing plant. The segment sells B2B krill oil supplements to nutritional brands for humans around world. Sales from the Human Health Ingredients segment to the Consumer Health Products segment include krill oil sold to Lang. These sales are presented as 'Internal sales' below.
The Consumer Health Products segment includes Lang Pharma Nutrition, a producer and distributor of private labels within the vitamin and supplement categories, to the largest retailers in the US market. Sales from the Consumer Health Products segment to the Emerging businesses segment include krill oil sold to Epion. These sales are presented as 'Internal sales' below.
The Emerging Businesses segment includes Epion, Aker BioMarine's consumer brand company that sells our own krill oil brand, Kori krill oil to the largest retailers in the US and Aion AS, a circular plastic company.
Segment performance is evaluated based on net revenues and Adjusted EBITDA less corporate SG&A costs (presented in the other/elim column) as well as specific balance sheet items.
The other/elim column comprises the following: the corporate overhead costs not directly attributable to the different segments, elimination of internal transactions between segments as well as elimination of internal profit in stock. All overhead and corporate cost (finance, legal, ESG, HR, communication and IT compliance) is booked under "Other/elim" and financed through a management fee structure. The Consumer Health Products segment has all their corporate cost embedded in the segment figures as Lang is a fully autonomous entity.
The tables below show the segment information provided to the EMT for the reportable segments for Q3 2024, Q3 2023 and the full year 2023. The table below also shows the basis on which revenue is recognized.
| USD million | Human Health Ingredients |
Consumer Health Products |
Emerging Businesses |
Other/elim | Total |
|---|---|---|---|---|---|
| Net sales | 24.6 | 29.1 | 2.1 | -6.4 | 49.3 |
| Cost of goods sold | -13.1 | -23.2 | -1.1 | 3.2 | -34.1 |
| Gross profit | 11.5 | 5.9 | 1.0 | -3.2 | 15.2 |
| SG&A | -2.9 -2.0 |
-3.8 -1.2 |
-2.0 1.7 |
-4.1 -0.7 |
-12.7 -2.2 |
| Depreciation, amortization and impairment Other operating income/(cost), net |
- | - | - | 0.3 | 0.3 |
| Operating profit (loss) | 6.6 | 0.9 | 0.8 | -7.7 | 0.5 |
| Human | Consumer | ||||
|---|---|---|---|---|---|
| Health | Health | Emerging | |||
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Operating profit | 6.6 | 0.9 | 0.8 | -7.7 | 0.5 |
| Depreciation and amortization non-production assets | 2.0 | 1.2 | -1.7 | 0.7 | 2.2 |
| Depreciation and amortization production assets1 | 1.3 | - | - | - | 1.3 |
| EBITDA | 9.9 | 2.1 | -1.0 | -7.0 | 4.0 |
| Special operating items | - | - | - | 4.4 | 4.4 |
| Adjusted EBITDA | 9.9 | 2.1 | -1.0 | -2.6 | 8.4 |
| Adj EBITDA margin % | 40% | 7% | -48% | 17% | |
| Gross margin % | 47% | 20% | 48% | 31% | |
| 1 Included in Cost of Goods Sold |
| Human | Consumer | ||||
|---|---|---|---|---|---|
| Health | Health | Emerging | |||
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Internal sales | 5.0 | 1.4 | - | -6.4 | - |
| External sales | 19.6 | 27.7 | 2.1 | - | 49.3 |
| Net sales | 24.6 | 29.1 | 2.1 | -6.4 | 49.3 |
| Human | Consumer | ||||
|---|---|---|---|---|---|
| Health | Health | Emerging | |||
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Property, plant and equipment | 64.9 | 0.3 | - | 1.1 | 66.4 |
| Inventory | 65.2 | 36.3 | 11.6 | -2.9 | 110.3 |
| Trade receivables and prepaid expenses | 30.3 | 16.7 | 3.3 | 10.0 | 60.3 |
| Accounts payable and other payable | 34.2 | 18.4 | 1.2 | -0.4 | 53.4 |
| Human Health |
Consumer Health |
Emerging | |||
|---|---|---|---|---|---|
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Net sales | 22.7 | 30.8 | 1.8 | -2.4 | 52.9 |
| Cost of goods sold | -11.3 | -24.5 | -1.3 | 2.2 | -34.8 |
| Gross profit | 11.4 | 6.3 | 0.5 | -0.2 | 18.1 |
| SG&A | -3.3 | -4.4 | -2.4 | -2.4 | -12.5 |
| Depreciation, amortization and impairment | -1.9 | -1.2 | -0.2 | -0.7 | -4.1 |
| Other operating income/(cost), net | 39.4 | - | - | -39.3 | 0.1 |
| Operating profit (loss) | 45.6 | 0.7 | -2.1 | -42.7 | 1.6 |
| Human | Consumer | ||||
|---|---|---|---|---|---|
| USD million | Health | Health | Emerging | ||
| Ingredients | Products | Businesses | Other/elim | Total | |
| Operating profit (loss) | 45.6 | 0.7 | -2.1 | -42.7 | 1.6 |
| Depreciation and amortization non-production assets | 1.9 | 1.2 | 0.2 | 0.7 | 4.1 |
| Depreciation and amortization production assets1 | 1.3 | - | - | - | 1.3 |
| EBITDA | 48.9 | 1.9 | -1.9 | -41.9 | 6.9 |
| Special operating items | -39.4 | 0.4 | - | 39.7 | 0.7 |
| Adjusted EBITDA | 9.5 | 2.3 | -1.9 | -2.2 | 7.6 |
| Adj EBITDA margin % | 42% | 7% | -106% | 14% | |
| Gross margin % | 50% | 20% | 28% | 34% | |
| 1 Included in Cost of Goods Sold |
| Human | Consumer | ||||
|---|---|---|---|---|---|
| Health | Health | Emerging | |||
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Internal sales | 1.5 | 0.9 | - | -2.4 | - |
| External sales | 21.2 | 29.9 | 1.8 | - | 52.9 |
| Net sales | 22.7 | 30.8 | 1.8 | -2.4 | 52.9 |
| Human | Consumer | |||||
|---|---|---|---|---|---|---|
| Feed | Health | Health | Emerging | |||
| USD million | Ingrediends | Ingredients | Products | Businesses | Other/elim | Total |
| Property, plant and equipment | 233.3 | 69.9 | 0.3 | 24.2 | 0.1 | 327.8 |
| Inventory | 54.4 | 63.8 | 39.3 | 17.0 | 8.6 | 183.2 |
| Trade receivables and prepaid expenses | 37.6 | 34.2 | 18.0 | 0.3 | 1.0 | 91.1 |
| Accounts payable and other payable | 21.1 | 6.3 | 13.6 | 2.1 | 2.0 | 45.1 |
| Human Health |
Consumer Health |
Emerging | |||
|---|---|---|---|---|---|
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Net sales | 72.4 | 80.3 | 7.5 | -13.2 | 147.0 |
| Cost of goods sold | -38.8 | -63.2 | -4.1 | 9.4 | -96.7 |
| Gross profit | 33.7 | 17.1 | 3.4 | -3.8 | 50.3 |
| SG&A | -11.9 | -12.7 | -6.6 | -11.7 | -43.0 |
| Depreciation, amortization and impairment | -5.0 | -3.9 | -0.7 | -2.2 | -11.8 |
| Other operating income/(cost), net | 1.2 | - | -0.1 | 0.1 | 1.2 |
| Operating profit (loss) | 18.0 | 0.5 | -4.1 | -17.6 | -3.3 |
| USD million | Human Health Ingredients |
Consumer Health Products |
Emerging Businesses |
Other/elim | Total |
|---|---|---|---|---|---|
| Operating profit (loss) | 18.0 | 0.5 | -4.1 | -17.6 | -3.3 |
| Depreciation and amortization non-production assets | 5.0 | 3.9 | 0.7 | 2.2 | 11.8 |
| Depreciation and amortization production assets1 | 3.9 | - | - | - | 3.9 |
| EBITDA | 26.9 | 4.4 | -3.3 | -15.4 | 12.5 |
| Special Operating Items | 0.2 | 0.5 | - | 8.5 | 9.1 |
| Adjusted EBITDA | 27.1 | 4.8 | -3.3 | -6.9 | 21.6 |
| Adj EBITDA margin % | 37% | 6% | -44% | 15% | |
| Gross margin % | 46% | 21% | 45% | 34% | |
| 1 Included in Cost of Goods Sold |
| Net sales | 72.4 | 80.3 | 7.5 | -13.2 | 147.0 |
|---|---|---|---|---|---|
| External sales | 61.9 | 77.6 | 7.5 | - | 147.0 |
| Internal sales | 10.5 | 2.7 | - | -13.2 | - |
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Health | Health | Emerging | |||
| Human | Consumer |
| Human | Consumer | ||||
|---|---|---|---|---|---|
| Health | Health | Emerging | |||
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Property, plant and equipment | 64.9 | 0.3 | - | 1.1 | 66.4 |
| Inventory | 65.2 | 36.3 | 11.6 | -2.9 | 110.3 |
| Trade receivables and prepaid expenses | 30.3 | 16.7 | 3.3 | 10.0 | 60.3 |
| Accounts payable and other payable | 34.2 | 18.4 | 1.2 | -0.4 | 53.4 |
| Human Health |
Consumer Health |
Emerging | |||
|---|---|---|---|---|---|
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Net sales | 63.3 | 91.7 | 8.9 | -16.4 | 147.5 |
| Cost of goods sold | -31.4 | -72.0 | -5.9 | 16.1 | -93.2 |
| Gross profit | 31.9 | 19.7 | 3.0 | -0.3 | 54.3 |
| SG&A | -10.6 | -13.1 | -10.6 | -10.1 | -44.5 |
| Depreciation, amortization and impairment | -5.5 | -3.6 | -0.5 | -2.4 | -12.0 |
| Other operating income/(cost), net | 39.4 | - | -0.2 | -39.2 | 0.1 |
| Operating profit (loss) | 55.2 | 2.9 | -8.3 | -52.0 | -2.0 |
| Human | Consumer Health Products |
Emerging Businesses |
Other/elim | Total | |
|---|---|---|---|---|---|
| Health | |||||
| USD million | Ingredients | ||||
| Operating profit (loss) | 55.2 | 2.9 | -8.3 | -52.0 | -2.0 |
| Depreciation and amortization non-production assets | 5.5 | 3.6 | 0.5 | 2.4 | 12.0 |
| Depreciation and amortization production assets1 | 3.3 | - | - | - | 3.3 |
| EBITDA | 64.0 | 6.6 | -7.8 | -49.7 | 13.2 |
| Special Operating Items | -39.2 | 0.4 | 0.1 | 44.1 | 5.4 |
| Adjusted EBITDA | 24.8 | 7.0 | -7.7 | -5.6 | 18.6 |
| Adj EBITDA margin % | 39% | 8% | -87% | 13% | |
| Gross margin % | 50% | 21% | 34% | 37% | |
| 1 Included in Cost of Goods Sold |
| Human | Consumer | ||||
|---|---|---|---|---|---|
| Health | Health | Emerging | |||
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Internal sales | 6.4 | 10.0 | - | -16.4 | - |
| External sales | 56.9 | 81.7 | 8.9 | - | 147.5 |
| Net sales | 63.3 | 91.7 | 8.9 | -16.4 | 147.5 |
| Human | Consumer | |||||
|---|---|---|---|---|---|---|
| Feed | Health | Health | Emerging | |||
| USD million | Ingrediends | Ingredients | Products | Businesses | Other/elim | Total |
| Property, plant and equipment | 233.3 | 69.9 | 0.3 | 24.2 | 0.1 | 327.8 |
| Inventory | 79.4 | 38.8 | 39.3 | 17.0 | 8.6 | 183.2 |
| Trade receivables and prepaid expenses | 37.6 | 34.2 | 18.0 | 0.3 | 1.0 | 91.1 |
| Accounts payable and other payable | 21.1 | 6.3 | 13.6 | 2.1 | 2.0 | 45.1 |
| USD million | Human Health Ingredients |
Consumer Health Products |
Emerging Businesses |
Other/elim | Total |
|---|---|---|---|---|---|
| Net sales | 84.2 | 122.2 | 11.1 | -20.7 | 196.7 |
| Cost of goods sold | -41.0 | -95.4 | -7.7 | 20.3 | -123.8 |
| Gross profit | 43.2 | 26.8 | 3.4 | -0.4 | 72.9 |
| SG&A | -15.8 | -16.4 | -13.9 | -20.2 | -66.4 |
| Depreciation, amortization and impairment | -6.6 | -4.8 | -1.1 | -3.8 | -16.3 |
| Other operating income/(cost), net1 | 39.4 | - | -0.2 | -39.3 | -0.1 |
| Operating profit (loss) | 60.2 | 5.6 | -11.8 | -63.7 | -9.9 |
1USD 39.4 million is internal sale of IP rights in Q3 2023
EBITDA reconciliation
| USD million | Human Health Ingredients |
Consumer Health Products |
Emerging Businesses |
Other/elim | Total |
|---|---|---|---|---|---|
| Operating profit (loss) | 60.2 | 5.6 | -11.8 | -63.7 | -9.9 |
| Depreciation and amortization non-production assets | 6.6 | 4.8 | 1.1 | 3.8 | 16.3 |
| Depreciation and amortization production assets2 | 4.4 | - | - | - | 4.4 |
| EBITDA | 71.2 | 10.4 | -10.7 | -59.9 | 10.9 |
| Special operating items | -38.6 | 0.4 | 0.2 | 48.7 | 10.7 |
| Adjusted EBITDA | 32.6 | 10.8 | -10.6 | -11.2 | 21.6 |
| Adj EBITDA margin % | 39% | 9% | -96% | 11% | |
| Gross margin % | 51% | 22% | 30% | 37% | |
| 2 Included in Cost of Goods Sold |
| Human | Consumer | ||||
|---|---|---|---|---|---|
| Health | Health | Emerging | |||
| USD million | Ingredients | Products | Businesses | Other/elim | Total |
| Internal sales | 9.0 | 11.7 | - | -20.7 | - |
| External sales | 75.2 | 110.5 | 11.1 | - | 196.7 |
| Net sales | 84.2 | 122.2 | 11.1 | -20.7 | 196.7 |
| Human | Consumer | |||||
|---|---|---|---|---|---|---|
| Feed | Health | Health | Emerging | |||
| USD million | Ingrediends | Ingredients | Products | Businesses | Other/elim | Total |
| Property, plant and equipment | 243.3 | 68.2 | 0.3 | 28.5 | 1.2 | 341.5 |
| Inventory | 63.7 | 50.4 | 35.1 | 22.7 | 11.8 | 183.7 |
| Trade receivables and prepaid expenses | 26.0 | 25.0 | 19.4 | 0.5 | 0.6 | 71.5 |
| Accounts payable and other payable | 23.9 | 15.6 | 11.1 | 4.3 | 9.0 | 63.9 |
The EMT evaluates the performance based on Adjusted EBITDA. This metric is defined as operating profit before depreciation, amortization, writedowns and impairments, and special operating items. Special operating items include gains or losses on sale of assets, if material, restructuring expenses and other material transactions of either non-recurring nature or special in nature compared to ordinary operational income or expenses. See reconciliation and description of the Alternative Performance Measures (APM) included in this report.
| Third Quarter | YTD | Year | |||
|---|---|---|---|---|---|
| USD million | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net profit (loss) from continued operations | 3.5 | -6.4 | -3.5 | -15.1 | -31.8 |
| Tax expense | -0.2 | 1.1 | 0.6 | 0.1 | - |
| Net financial items | -2.8 | 6.9 | -0.4 | 13.0 | 21.9 |
| Operating profit | 0.5 | 1.6 | -3.3 | -2.0 | -9.9 |
| Depreciation, amortization and impairment non-production | 2.2 | 4.1 | 11.8 | 12.0 | 16.3 |
| assets Depreciation, amortization and impairment production assets1 |
1.3 | 1.3 | 3.9 | 3.3 | 4.4 |
| EBITDA | 4.0 | 6.9 | 12.4 | 13.2 | 10.9 |
| Special operating items | 4.4 | 0.7 | 9.1 | 5.4 | 10.7 |
| Adjusted EBITDA | 8.4 | 7.6 | 21.6 | 18.6 | 21.6 |
1 Included in cost to inventory
| Vessels, | ||||||
|---|---|---|---|---|---|---|
| transportation, | Asset under | Buildings and | ||||
| USD million | equipment, etc | Machinery | construction | Land | Total | |
| Acquisition cost as of 1 January 2024 | 297.9 | 164.4 | 46.5 | 20.6 | 529.4 | |
| Investments | 2.2 | 3.4 | 2.5 | 1.4 | 9.5 | |
| Sale | -294.2 | -86.5 | -3.1 | - | -383.8 | |
| Asset retirements | -7.1 | -2.4 | -2.0 | - | -11.5 | |
| Other reclassifications | 1.2 | -2.1 | -2.8 | - | -3.7 | |
| Acquisition cost as of 30 September 2024 | - | 76.8 | 41.2 | 22.0 | 140.0 | |
| Reclassified to assets held for sale | - | -17.3 | -14.7 | - | -32.1 | |
| Acquisition cost as of 30 September 2024, | ||||||
| continued operations | - | 59.4 | 26.5 | 22.0 | 107.9 | |
| Acc. depreciation and impairment as of 1 January 2024 | -109.7 | -70.1 | -2.7 | -5.5 | -188.0 | |
| Depreciation for the year | -14.2 | -12.4 | - | -0.6 | -27.2 | |
| Sale | 114.0 | 39.4 | 2.7 | - | 156.1 | |
| Asset retirements | 9.9 | 2.8 | - | - | 12.7 | |
| Other reclassifications | - | 1.8 | - | - | 1.8 | |
| Acc. depreciation and impairment as of | - | -38.5 | - | -6.0 | -44.6 | |
| Reclassified to assets held for sale | - | 3.0 | - | - | 3.0 | |
| Acc. depreciation and impairment as of 30 September 2024 | ||||||
| continued operations | - | -35.5 | - | -6.0 | -41.5 | |
| Book value as of 30 September 2024 | - | 23.9 | 26.5 | 15.9 | 66.4 | |
| Depreciation period | 10-30 years | 3-20 years | 30-50 years | |||
| Depreciation method | Straight-line | Straight-line | Straight-line |
Investments in assets under construction are related to various projects. Investments in building and land and machinery includes investments in the Houston plant.
Asset retirements in the quarter were fully depreciated.
Sale of assets in the quarter relate to the disposal group Feed Ingredients (note 8).
Reclassifications to assets held for sale relates to the Protein plant (note 9).
| Vessels, | ||||||
|---|---|---|---|---|---|---|
| transportation, | Asset under | Buildings and | ||||
| USD million | equipment, etc | Machinery | construction | Land | Total | |
| Acquisition cost as of 1 January 2023 | 283.7 | 149.0 | 46.5 | 19.6 | 498.8 | |
| Investments | 2.6 | 3.4 | 14.9 | 0.8 | 21.7 | |
| Asset retirements | -1.7 | -2.1 | - | - | -3.8 | |
| Other reclassifications | - | 18.6 | -19.9 | - | -1.3 | |
| Acquisition cost as of 30 September 2023 | 284.6 | 168.9 | 41.5 | 20.4 | 515.4 | |
| Acc. depreciation and impairment as of 1 January 2023 | -96.1 | -62.1 | -2.7 | -4.7 | -165.6 | |
| Depreciation for the year | -13.5 | -11.4 | - | -0.5 | -25.4 | |
| Asset retirements | 1.7 | 2.0 | - | - | 3.8 | |
| Other reclassifications | - | -0.4 | - | - | -0.4 | |
| Acc. depreciation and impairment as of 30 September 2023 | -107.9 | -71.8 | -2.7 | -5.2 | -187.6 | |
| Book value as of 30 September 2023 | 176.7 | 97.0 | 38.8 | 15.2 | 327.8 | |
| Depreciation period | 10-30 years | 3-20 years | 30-50 years | |||
| Depreciation method | Straight-line | Straight-line | Straight-line | |||
| Vessels, | ||||||
| transportation, | Asset under | Buildings and | ||||
| USD million | equipment, etc | Machinery | construction | Land | Total | |
| Acquisition cost as of 1 January 2023 | 283.7 | 149.0 | 46.5 | 19.6 | 498.8 | |
| Investments | 18.5 | 3.6 | 23.8 | - | 45.9 | |
| Asset retirements | -4.3 | -1.1 | -0.6 | - | -6.1 | |
| Other reclassifications | - | 20.5 | -23.2 | 1.0 | -1.7 | |
| Acquisition cost as of 31 December 2023 | 297.9 | 171.9 | 46.5 | 20.6 | 537.0 | |
| Acc. depreciation and impairment as of 1 January 2023 | -96.1 | -62.1 | -2.7 | -4.7 | -165.6 | |
| Depreciation for the year | -18.0 | -15.7 | - | -0.7 | -34.4 | |
| Asset retirements | 4.3 | 0.7 | - | - | 5.0 | |
| Other reclassifications | - | -0.5 | - | - | -0.5 | |
| Acc. depreciation and impairment as of 31 December 2023 | -109.7 | -77.6 | -2.7 | -5.4 | -195.5 | |
| Book value as of 31 December 2023 | 188.2 | 94.3 | 43.9 | 15.2 | 341.5 | |
| Depreciation period | 10-30 years | 3-20 years | 30-50 years |
| As of | As of | ||
|---|---|---|---|
| 30 September | 30 September | As of | |
| USD million | 2024 | 2023 | 31 December 2023 |
| Depreciation for the year for property, plant & equipment | -2.8 | -4.5 | -6.0 |
| Amortization for the year, - Intangible assets | -8.8 | -5.8 | -8.4 |
| Amortization for the year, - Contract cost | -1.5 | -1.5 | -2.0 |
| Leasing (ROU) depreciation | -2.6 | -3.4 | -4.4 |
| Total | -15.7 | -15.3 | -20.7 |
| Depreciation, amortization and impairment non-production assets | -11.8 | -12.0 | -16.3 |
| Depreciation, amortization and impairment production assets and included in cost | -3.9 | -3.3 | -4.4 |
to inventory
| License | Fishing | Customer | ||||||
|---|---|---|---|---|---|---|---|---|
| USD million | Goodwill | Development | agreements | Patents | licenses | relation | Trademark | Total |
| Acquisition cost as of 1 January 2024 | 94.6 | 11.1 | 2.4 | 2.6 | 10.5 | 90.9 | 5.7 | 217.8 |
| Additions - external cost | - | 0.2 | - | - | - | 0.5 | - | 0.7 |
| Acquisition | - | - | - | - | - | - | - | - |
| Sale | -32.0 | - | - | - | -10.5 | - | - | -42.5 |
| Asset retirements | - | - | - | - | - | - | - | - |
| Reclassifications | - | 1.1 | - | - | - | - | - | 1.1 |
| Acquisition cost as of 30 September 2024 | 62.6 | 12.4 | 2.4 | 2.6 | - | 91.5 | 5.7 | 177.2 |
| Amortization and impairment losses as of 1 January | ||||||||
| 2024 | - | -6.9 | -2.4 | - | - | -52.3 | -0.9 | -62.4 |
| Amortization for the year | - | -2.0 | - | -0.3 | -6.5 | - | -8.8 | |
| Amortization and impairment losses as of | - | -8.9 | -2.4 | -0.3 | - - |
-58.8 | -0.9 | -71.3 |
| Amortization and impairment losses as of 30 | ||||||||
| September 2024 continued operations | - | -8.9 | -2.4 | -0.3 | - | -58.8 | -0.9 | -71.3 |
| Book value as of 30 September 2024 | 62.6 | 3.5 | - | 2.3 | - | 32.6 | 4.8 | 105.9 |
| Depreciation period Depreciation method |
5-10 years Straight-line |
10-12 years Straight |
7-10 years Straight |
7-10 years Straight |
7-10 years Straight |
Sale in 2024:
Sale of assets in the quarter relate to the disposal group Feed Ingredients (note 8).
| License | Fishing | Customer | |||||
|---|---|---|---|---|---|---|---|
| USD million | Goodwill | Development | agreements | licenses | relation | Trademark | Total |
| Acquisition cost as of 1 January 2023 | 94.6 | 9.4 | 2.4 | 10.5 | 91.9 | 5.7 | 214.5 |
| Additions - external cost | - | 0.6 | 0.9 | - | - | 1.7 | 3.2 |
| Reclassifications | - | 1.7 | - | - | - | -0.9 | 0.7 |
| Acquisition cost as of 30 September 2023 | 94.6 | 11.7 | 3.3 | 10.5 | 91.9 | 6.4 | 218.3 |
| Amortization and impairment losses as of 1 January | |||||||
| 2023 | - | -5.4 | -2.2 | - | -43.3 | -0.9 | -51.8 |
| Amortization for the year | - | -0.9 | -0.4 | - | -7.1 | - | -8.3 |
| Reclassifications | - | - | - | - | - | 0.4 | 0.4 |
| Amortization and impairment losses as of 30 | |||||||
| September 2023 | - | -6.3 | -2.6 | - | -50.4 | -0.5 | -59.8 |
| Book value as of 30 September 2023 | 94.6 | 5.4 | 0.7 | 10.5 | 41.5 | 5.9 | 158.5 |
| Depreciation period | 5-10 years | 10-12 years | 7-10 years | 7-10 years |
line
line
Depreciation method Straight-line Straight-line Straight-line Straight-line
line
line
| USD million | Goodwill | Development | License agreements |
Patents | Fishing licenses |
Customer relation |
Trademark | Total |
|---|---|---|---|---|---|---|---|---|
| Acquisition cost as of 1 January 2023 | 94.6 | 9.4 | 2.4 | - | 10.5 | 91.9 | 5.7 | 214.5 |
| Additions - external cost | - | - | - | 2.6 | - | 0.1 | - | 2.7 |
| Asset retirements | - | - | - | - | - | -0.5 | - | -0.5 |
| Reclassifications | - | 1.7 | - | - | - | -0.5 | - | 1.2 |
| Acquisition cost as of 31 December 2023 | 94.6 | 11.1 | 2.4 | 2.6 | 10.5 | 91.0 | 5.7 | 217.9 |
| Amortization and impairment losses as of 1 January | ||||||||
| 2023 | - | -5.4 | -2.2 | - | - | -43.3 | -0.9 | -51.8 |
| Amortization/ impairment for the year | - | -1.5 | -0.2 | - | - | -9.5 | - | -11.2 |
| Reclassifications | - | - | - | - | - | 0.4 | - | 0.4 |
| Amortization and impairment losses as of 31 | ||||||||
| December 2023 | - | -6.9 | -2.4 | - | - | -52.4 | -0.9 | -62.5 |
| Book value as of 31 December 2023 | 94.6 | 4.3 | - | 2.6 | 10.5 | 38.6 | 4.8 | 155.4 |
| Depreciation period | 5-10 years | 10-12 years | 7-10 years | 7-10 years | 7-10 years |
line
Straightline Straightline
Straightline
Depreciation method Straight-line Straight-
25
Inventories are measured at the lower of actual production cost (including freight) and net realizable value. Acquisition cost is based on the actual cost of warehouse materials. The cost of finished goods and work in progress is comprised of the costs of raw materials, direct labor and other direct costs, and related production overheads. Indirect costs allocated to inventories, includes salaries, depreciation and certain other operating expenses. The company assigns cost of inventories using a weighted average cost formula.
| Human | Consumer | |||||
|---|---|---|---|---|---|---|
| Feed | Health | Health | Emerging | |||
| USD million | Ingredients | Ingredients | Products | Business | Other/elim | Total |
| Non-product related inventory | - | |||||
| Packaging | 1.1 | 1.1 | ||||
| Raw materials and goods under production | 28.2 | 28.2 | ||||
| Finished goods | 36.0 | 36.3 | 11.6 | -2.9 | 81.0 | |
| Inventory at 30 September 2024 | - | 65.2 | 36.3 | 11.6 | -2.9 | 110.3 |
| USD million | Feed Ingredients |
Human Health Ingredients |
Consumer Health Products |
Emerging Business |
Other/elim | Total |
|---|---|---|---|---|---|---|
| Raw materials and goods under production | 25.0 | 25.0 | ||||
| Finished goods | 54.4 | 38.7 | 39.3 | 17.0 | 8.6 | 158.0 |
| Inventory at 30 September 2023 | 79.4 | 38.7 | 39.3 | 17.0 | 8.6 | 183.2 |
| Human | Consumer | |||||
|---|---|---|---|---|---|---|
| Feed | Health | Health | Emerging | |||
| USD million | Ingredients | Ingredients | Products | Business | Other/elim | Total |
| Non-product related inventory | 14.7 | 14.7 | ||||
| Packaging | 6.4 | 1.6 | 7.9 | |||
| Raw materials and goods under production | 16.0 | 7.4 | 23.4 | |||
| Finished goods | 42.6 | 32.8 | 35.1 | 22.7 | 4.5 | 137.7 |
| Inventory at 31 December 2023 | 63.7 | 50.4 | 35.1 | 22.7 | 11.8 | 183.7 |
The inventory presented in the "other/elim column" is elimination of internal profit in stock. Until Q2 2024, the balance also included the delta production cost of nutra meal between the agreed price between the Feed Ingredients and the Human Health Ingredients segment and actual production cost.
During Q3, 2024, Aker BioMarine ASA has placed a NOK 1,600 billion bond at 3-year tenure at NIBOR +425 bps. The Company has entered into a cross currency swap agreement to USD 150.7 million at SOFR + 467.6 bps.
Prior to the sale of Feed Ingredients, one of the Group's significant operating costs has been the fuel costs. As such, the Group has been exposed to fuel prices fluctuations since the vessels use fuel while steaming and in production. The profitability and cash flow of the Group have therefore depended upon the market prices of fuel. In 2021, Aker BioMarine Antarctic AS entered into option contracts for future delivery of fuel in Rotterdam; that is, the contracts will be settled without physical delivery. During 2023, the Company evaluated the qualifying criteria for hedge accounting. Following the assessment, the Company discontinued the hedging relationship with the effect that amounts in the cash flow hedging reserve were reclassified to the profit and loss. In addition to this, the Company sold its 2024 fuel option contracts at the end of 2023.
On 3 July 2024, the Company announced an agreement with American Industrial Partners ("AIP") and Aker Capital ("Aker") for the sale of Aker BioMarine's ownership position in the Feed Ingredients business, based on an enterprise valuation of USD 590 million (around NOK 6.3 billion). Closing of the transaction occurred on 3 September 2024, with economic value date 31 August 2024, upon which the Feed Ingredient segment has been deconsolidated from the Aker BioMarine Group.
The enterprise value in the transaction was set to USD 590 million, assuming a normalized net working capital and to be adjusted for net debt. On the closing date of the transaction, Aker BioMarine received a preliminary purchase price for the Feed Ingredients business of USD 391.2 million, deducting a sellers financing of USD 20 million. The preliminary purchase price has been calculated pursuant to a pre-closing statement which was prepared in good faith and set out, among other, the net debt and net working capital of the Feed Ingredients business. At 30 September 2024, the calculation of the gain from sale of the Feed Ingredients assets has been based on the latest available estimated purchase price of USD 385.7 million. According to the sales purchase agreement, the closing statement and the calculation of the final purchase price is expected to be finalized in the middle of Q4 2024. The preliminary gain after income tax resulting from the sale of the Feed Ingredients assets is USD 214.2 million. The preliminary gain has been calculated by deducting Aker BioMarine Group's book value of the Feed Ingredients assets on the closing date from the preliminary purchase price less costs to sell and revenues and expenses allocated to discontinued operations. Costs that have occurred in other group companies as a direct consequence of the disposal are also classified as discontinued business.
The following tables present financial information for profit (loss), cash flows and classes of assets and liabilities for the Feed ingredients disposal group. The Group's Income Statement has been re-presented for the comparative figures for Q3 2023, YTD Q3 2023 and 2023 for the effects of the disposal group Feed Ingredients. The Statement of Financial Position and Cash Flow statement are not re-presented for the comparative figures. Elimination of internal profit in inventory for sales from the discontinued operation to the Group's continued operations is presented as part of net profit of discontinued operations.
| USD million | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net profit for the period | -6.3 | 7.8 | -10.5 | -2.7 |
| Gain on the sale of the subsidiary after tax | 214.2 | - | 214.2 | - |
| Net profit for the period from discontinued operations | 207.9 | 7.8 | 203.7 | -2.7 |
+ + +
| Third Quarter | Year to date | Year | ||||
|---|---|---|---|---|---|---|
| USD million | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Net sales | 13.6 | 41.7 | 88.1 | 104.8 | 138.4 | |
| Cost of goods sold | -17.0 | -25.1 | -71.8 | -77.5 | -100.1 | |
| Gross profit | -3.4 | 16.6 | 16.3 | 27.2 | 38.4 | |
| SG&A | -2.7 | -5.1 | -12.3 | -18.8 | -24.1 | |
| Depreciation, amortization and impairment | - | -0.6 | -1.3 | -1.9 | -2.5 | |
| Other operating income/(cost), net | 0.1 | - | 0.4 | - | 4.1 | |
| Operating profit (loss) | -6.0 | 10.9 | 3.1 | 6.5 | 15.9 | |
| Net financial items | -0.3 | -3.1 | -15.7 | -9.2 | -17.3 | |
| Tax expense | - | - | - | - | 25.0 | |
| Net profit (loss) | -6.3 | 7.8 | -12.5 | -2.7 | 23.6 |
| Third Quarter | Year to date | Year | ||||
|---|---|---|---|---|---|---|
| USD million | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Net cash-flow from operating activities | 0.3 | 30.0 | -1.0 | 27.0 | 43.0 | |
| Net cash-flow from investing activities | 29.6 | -3.0 | 17.0 | -5.0 | -14.0 | |
| Net cash-flow from financing activities | -29.3 | -7.0 | -14.5 | 4.0 | -3.0 | |
| Net change in cash and cash equivalents | 0.6 | 20.0 | 1.5 | 26.0 | 26.0 |
The company Aion AS has been defined as held-for-sale since 31 December 2023. As of 30 September 2024, the company AKBM Understory AS is also defined as held-for-sale. The Group has initiated as sales process for both companies and it is considered highly probable that sales will close within 12 months. AKBM Understory AS is considered to represent a separate major line of business and is classified as discontinued operation. Management has exercised judgement in determining whether the Protein business (Aker BioMarine Understory AS) represents a separate major line of business in line with IFRS 5. When performing the assessment, management has considered costs, fixed assets as well as number of employees compared to continued business when concluding that the Protein business is a 'major line of business'.
The following tables present financial information for profit (loss), cash flows and classes of assets and liabilities for AKBM Understory AS as well as assets for Aion AS.
| Third Quarter | Year to date | Year | ||||
|---|---|---|---|---|---|---|
| USD million | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Net sales | - | - | - | - | - | |
| Cost of goods sold | - | - | - | - | - | |
| Gross profit | - | - | - | - | - | |
| SG&A | -0.2 | - | -0.2 | - | - | |
| Depreciation, amortization and impairment | -2.9 | -0.3 | -2.9 | -1.1 | -2.3 | |
| Other operating income/(cost), net | - | - | - | - | - | |
| Operating profit (loss) | -3.1 | -0.3 | -3.1 | -1.1 | -2.3 | |
| Net financial items | -0.7 | - | -0.7 | - | -0.1 | |
| Tax expense | - | - | - | - | - | |
| Net profit (loss) from discontinued operations | -3.9 | -0.3 | -3.9 | -1.1 | -2.4 |
| Third Quarter | Year to date | Year | ||||
|---|---|---|---|---|---|---|
| USD million | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Net cash-flow from operating activities | - | - | - | - | - | |
| Net cash-flow from investing activities | -0.9 | -0.8 | -2.2 | -6.7 | -8.3 | |
| Net cash-flow from financing activities | -1.4 | -0.1 | -4.0 | -0.2 | -0.3 | |
| Net change in cash and cash equivalents | -2.3 | -0.9 | -6.2 | -6.9 | -8.6 |
| Balance Sheet Items | As of 30 September 2024 | ||||
|---|---|---|---|---|---|
| USD million | Understory | Aion | Total | ||
| ASSETS | |||||
| Property, plant and equipment | 29.0 | - | 29.0 | ||
| Right to use assets | 2.7 | - | 2.7 | ||
| Intangible assets and goodwill | - | ||||
| Deferred tax asset | - | ||||
| Investments in associated companies | - | ||||
| Inventories | 0.1 | - | 0.1 | ||
| Trade receivable and prepaid expenses | - | ||||
| Cash and cash equivalents | - | - | |||
| Assets directly associated with the disposal group | 31.8 | - | 31.8 | ||
| Investment in Aion | 5.6 | 5.6 | |||
| Assets held for sale | 37.4 | ||||
| Interest-bearing debt | 2.7 | - | 2.7 | ||
| Interest-bearing current liabilities | - | - | |||
| Accounts payable and other payables | 1.7 | - | 1.7 | ||
| Liabilities directly associated with the disposal group | 4.4 | - | 4.4 |
During the quarter, the Group has entered into a new contract with AKBM Antarctic AS related to purchase of nutra meal.
In the ordinary course of business, the Group has certain transactions with related parties covering purchase of nutra meal, office rent, digital development services and other. As of 30 September 2024, the Group had USD 20.6 million towards related parties recognized as 'Accounts payable and other payables' in the 'Consolidated statement of financial position'. In the 'Condensed consolidated statements of profit or loss' under 'Selling, general and administrative expense' the Group has recognized USD 0.2 million in the quarter as related party costs. In the 'Condensed consolidated statements of profit or loss' under 'Other operating income' the Group has recognized USD 0.3 million in the quarter as related party revenues.
No subsequent events after the quarter.
Alternative performance measures, meaning financial performance measures not included within the applicable financial reporting framework, are used by the Group to provide supplemental information by excluding items that in management's view, do not give indications of the periodic operating results. Financial APMs are used to enhance comparability of the results from one period to the next, and management uses these measures internally when driving performance in terms of long- and short-term forecasts. The measures are adjusted IFRS measures, and are defined, calculated, and consistently applied in the Group's financial reporting. The Group focuses on EBITDA and Adjusted EBITDA when presenting the period's financial result internally and externally. Adjusted EBITDA is adjusted for Special operating items.
Financial APMs should not be considered as substitute for measures of performance in accordance with applicable financial reporting framework.
"EBITDA" and "Adjusted EBITDA" are used as APMs to facilitate operating performance comparisons from period to period, and the others are relevant key figures mainly in connection with the mentioned performance measures. The significant items of income and expenditure represent the difference between EBITDA and Adjusted EBITDA and are labeled "Special operating items" (which is also the wording used in the Group's financing agreements).
Special Operating Items in Q3-24 include USD 1.2 million in costs related to improvement and restructuring programs, and USD 3.2 million for impairment and other non-recurring inventory adjustments. Cost and fees directly attributable to the Feed Ingredient transaction are booked under discontinued operations. APMs recognized in 2023 are costs mainly related to the improvement program and the strategic review of the Feed Ingredient business. For further details on APMs in 2023, see the group financial statements for 2023.
| Third Quarter | YTD | Year | ||||
|---|---|---|---|---|---|---|
| USD million | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Net profit (loss) | 3.5 | -6.4 | -3.5 | -15.1 | -31.8 | |
| Tax expense | -0.2 | 1.1 | 0.6 | 0.1 | - | |
| Net financial items | -2.8 | 6.9 | -0.4 | 13.0 | 21.9 | |
| Operating profit (loss) | 0.5 | 1.6 | -3.3 | -2.0 | -9.9 | |
| Depreciation, amortization and impairment non-production assets | 2.2 | 4.1 | 11.8 | 12.0 | 16.3 | |
| Depreciation, amortization and impairment production assets1 | 1.3 | 1.3 | 3.9 | 3.3 | 4.4 | |
| EBITDA | 4.0 | 6.9 | 12.4 | 13.2 | 10.9 | |
| Special operating items | 4.4 | 0.7 | 9.1 | 5.4 | 10.7 | |
| Adjusted EBITDA | 8.4 | 7.6 | 21.6 | 18.6 | 21.6 |
1 Included in cost to inventory
| Third Quarter | YTD | Year | ||||
|---|---|---|---|---|---|---|
| USD million | 2024 | 2023 | 2024 | 2023 | 2023 | |
| Restructuring costs | 1.2 | 0.3 | 5.5 | 5.0 | 10.3 | |
| Impairment and other inventory adjustments | 3.2 | - | 3.2 | - | - | |
| Other | - | 0.4 | 0.4 | 0.4 | 0.4 | |
| Total special operating items | 4.4 | 0.7 | 9.1 | 5.4 | 10.7 |
Based on the Group's policy on APMs, the restructuring costs and tax/structure analysis are material transactions that are non-recurring in nature, and special compared to the ordinary operational income or expenses. These transactions are therefore adjusted from the EBITDA in the respective periods.
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