Borregaard (BRG) Q3 2024 earnings summary

Executive summary

• Operating revenues rose to NOK 1,949 million in Q3 2024, up 14% year-over-year, with EBITDA at NOK 534 million, driven by higher sales volumes in Biosolutions and Fine Chemicals.

• Earnings per share increased to NOK 2.51 from NOK 2.38 year-over-year.

• Growth was supported by a NOK 490 million capacity expansion investment at Sarpsborg, expected to increase capacity by 5–10% by 2027 and deliver environmental and cost benefits.

• Net currency effects were slightly positive in the quarter.

Financial highlights

• EBITDA margin was 26.9% (27% last year), with Q3 operating profit at NOK 385 million and profit before tax at NOK 326 million.

• Cash flow from operating activities was NOK 391 million; investments totaled NOK 287 million in Q3.

• Net interest-bearing debt at NOK 2,073 million as of 30 September 2024; equity ratio at 55.6%, leverage ratio at 1.15.

• Return on capital employed (ROCE) at 16.8% (19.1% last year).

Outlook and guidance

• Q4 Biosolutions sales volume expected between 70,000–75,000 tonnes, with strong agriculture demand; biovanillin market remains pressured by synthetic supply.

• Biomaterials Q4 deliveries expected at approximately 35,000 tonnes.

• Fine Chemicals Q4 deliveries projected to be significantly lower than Q3; annual maintenance and seasonal cost increases expected.

• Ongoing global economic and geopolitical uncertainties may affect markets and costs.

• No significant price changes expected in Biosolutions for 2025.