The company just released its 2020 annual report.
New funding agreements increased the company’s liquidity and gave Hamlet Protein flexibility to continue growing, said CEO Erik Visser, who was appointed in mid-2019 to lead a company restructuring and strategy review.
“We have refinanced our debt with Nordea. The new funding agreements were tailored to the needs of the Hamlet Strategic Plan and offer significantly increased liquidity. In addition, they led to lower interest expenses, an extended term of the credit facilities and additional flexibility in the financial covenants, ”he told us.
The cost level has been adjusted according to company size, a hands-on management team has been appointed and a more customer-centric approach has been introduced to the company, the CEO said.
Hamlet Protein’s 2020 recurring EBITDA increased 42% from 2019. This jump is due to a volume growth of 19% compared to the previous year and improved cost management. APAC, in which China recovered from African Swine Fever (ASF), was the main contributor with a 58% increase in volume.
Even as market conditions for pig producers deteriorated in the second half of 2021, North and Central Asia (NCA) still supplied 15% more than the previous year. EMEA, with a slightly declining performance in Denmark, grew 4% and BRSA rose 32% from 2019, said the soy-based ingredient maker.
“In 2020, COVID-19 and ASF created challenging market conditions. Although market demand for animal protein has proven robust, we saw different effects in the many markets in which we operate. Having invested in local resources in our key export markets, we were well positioned to cope with changing conditions. And with the right COVID-19 measures, we were able to ensure uninterrupted supplies to our customers, ”said Visser.
He said the juvenile feed market continues to grow.
“In 2021, additional production capacity will be available in our US plant. Our remodeled main office opens in Denmark and two new products, one for pigs and the other for poultry, are launched, ”Visser concluded.
Pigs are still the dominant segment in the US for the Danish company, but the poultry segment is becoming increasingly important in this market, he said.
Hamlet Protein has two production facilities, one in Denmark and one in the USA.