Hike in volumes for Balchem animal nutrition business in Q3 2016
However, it noted the gain from the higher volumes sold was partially offset by lower average selling prices related to certain lower raw material costs and mix in the three months up to the end of September 2016.
Earnings from operations for the ANH segment, which produces products for the dairy, swine and poultry sectors including encapsulated choline, niacin and urea supplements, as well as chelated mineral supplements, jumped 20.6% to $6.8m as compared to $5.6m in Q3 last year, it added.
In its overall business, Balchem reported Q3 net earnings of $14m, a total similar to the year prior quarter.
Adjusted earnings before interest, tax and amortization (EBITA), it noted, was $36.6m, compared to the equivalent for Q3 2015 - $35.7m.
For the nine months up to the end of September, Balchem recorded net earnings of $40m with record adjusted EBITDA of $111.6m, compared to net earnings and adjusted EBITDA of $44.1m and $106.7m respectively, in the prior year.
Balchem CEO, Ted Harris, commenting on the results, said: “While we continue to face top line challenges, particularly in the oil and gas business within industrial products, our team was able to deliver both solid earnings and record third quarter free cash flow for the quarter.”
Strategic alliances
In terms of highlights during Q3, Balchem rated the strategic alliance it announced in September with Perdue AgriBusiness. That collaborative tie-up is aimed at advancing the science of feed efficiency for dairy cattle.
The two companies said they joined forces to extend the implementation of precision feeding principles and bring new products to the dairy industry.
Initial efforts will be focused on the area of ruminant amino acids nutrition, which they said is an area of expertise for both companies. The next step then is to bring their collective expertise and research capabilities to develop precision feeding based on other nutrients such as minerals, lipids and carbohydrates.
Meanwhile, in May this year, Balchem said it was working with the German chemical group, BASF, to bring next generation feed efficiency and health products to the North American swine industry, to ensure the sector’s future profitability.
