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Jun 30, 2023
Balchem Q2 2023 Earnings Report
Balchem's second quarter results were announced, revealing a slight decrease in net sales but increases in net earnings and adjusted EBITDA compared to the prior year quarter.
Key Takeaways
Balchem Corporation reported second quarter net sales of $231.3 million, a decrease of 2.3% compared to the prior year quarter. Net earnings were $30.1 million, an increase of 1.1% from the second quarter 2022. Adjusted EBITDA was a record $59.1 million, an increase of 4.6% from the prior year.
Net sales decreased by 2.3% to $231.3 million.
Adjusted EBITDA increased by 4.6% to a record $59.1 million.
GAAP net earnings increased by 1.1% to $30.1 million, resulting in GAAP earnings per share of $0.93.
Cash flows from operations were $35.0 million, with free cash flow of $31.7 million.
Balchem
Balchem
Forward Guidance
The broader economic outlook and market demand still shows a high degree of uncertainty and demand patterns have not yet fully normalized, but I believe Balchem’s strong market positions will enable us to continue to deliver solid financial results as the markets recover more broadly.
Positive Outlook
- Strong profitability and margin performance.
- Strong market positions.
- Strategic growth initiatives in 2023 and beyond.
- Ability to deliver long-term growth.
- New manufacturing unit for Vitacholine to support worldwide growth.
Challenges Ahead
- Broader economic outlook shows a high degree of uncertainty.
- Market demand shows a high degree of uncertainty.
- Demand patterns have not yet fully normalized.
- Net sales decreased by 2.3% compared to the prior year quarter.
- Lower sales in monogastric markets.