Balchem Corporation Delivers Robust Q3 2024 Results
Friday, Oct 25, 2024 7:06 am ET
1min read Balchem Corporation (NASDAQ: BCPC) reported strong financial results for the third quarter of 2024, demonstrating solid revenue growth and record earnings from operations and adjusted EBITDA. The company's Human Nutrition and Health and Specialty Products segments both delivered impressive sales and earnings growth.
Net sales for the quarter reached $239.9 million, representing a 4.3% increase compared to the prior year quarter. Adjusted EBITDA hit a record $64.4 million, marking a 7.6% increase year-over-year. GAAP net earnings climbed 16.4% to $33.8 million, translating to a GAAP earnings per share (EPS) of $1.03, compared to $0.90 in the prior year quarter. Adjusted EPS also reached a record high of $1.13.
The Human Nutrition and Health segment generated sales of $152.3 million, up 5.4% year-over-year, driven by increases in minerals, nutrients, and demand in food and beverage markets. The segment's record earnings from operations of $35.6 million increased $4.3 million, or 13.8%, compared to the prior year quarter. This growth was primarily due to higher sales and a favorable mix, partially offset by higher operating expenses.
Balchem's Animal Nutrition and Health segment launched a newly developed product, AminoShure®-XL, a next-generation rumen protected precision release lysine solution designed to consistently, reliably, and economically meet the lysine amino acid dietary requirements of lactating dairy cattle. This innovative product offers leading performance when considering feed stability, lysine content, and bioavailability compared to other products in the market.
Strong cash flows in the third quarter enabled Balchem to make repayments on its revolving debt of $39.6 million, bringing its net debt to $153.3 million, with an overall leverage ratio on a net debt basis of 0.6 times. The company generated strong cash flows from operations of $51.3 million, with quarterly free cash flow of $42.2 million.
Ted Harris, Chairman, President, and CEO of Balchem, expressed confidence in the company's strategic growth initiatives and the resilience of its business model, projecting a positive long-term growth outlook for the company. Balchem's strong financial performance in the third quarter of 2024, driven by its Human Nutrition and Health and Specialty Products segments, positions the company well for continued success in the coming quarters.
Net sales for the quarter reached $239.9 million, representing a 4.3% increase compared to the prior year quarter. Adjusted EBITDA hit a record $64.4 million, marking a 7.6% increase year-over-year. GAAP net earnings climbed 16.4% to $33.8 million, translating to a GAAP earnings per share (EPS) of $1.03, compared to $0.90 in the prior year quarter. Adjusted EPS also reached a record high of $1.13.
The Human Nutrition and Health segment generated sales of $152.3 million, up 5.4% year-over-year, driven by increases in minerals, nutrients, and demand in food and beverage markets. The segment's record earnings from operations of $35.6 million increased $4.3 million, or 13.8%, compared to the prior year quarter. This growth was primarily due to higher sales and a favorable mix, partially offset by higher operating expenses.
Balchem's Animal Nutrition and Health segment launched a newly developed product, AminoShure®-XL, a next-generation rumen protected precision release lysine solution designed to consistently, reliably, and economically meet the lysine amino acid dietary requirements of lactating dairy cattle. This innovative product offers leading performance when considering feed stability, lysine content, and bioavailability compared to other products in the market.
Strong cash flows in the third quarter enabled Balchem to make repayments on its revolving debt of $39.6 million, bringing its net debt to $153.3 million, with an overall leverage ratio on a net debt basis of 0.6 times. The company generated strong cash flows from operations of $51.3 million, with quarterly free cash flow of $42.2 million.
Ted Harris, Chairman, President, and CEO of Balchem, expressed confidence in the company's strategic growth initiatives and the resilience of its business model, projecting a positive long-term growth outlook for the company. Balchem's strong financial performance in the third quarter of 2024, driven by its Human Nutrition and Health and Specialty Products segments, positions the company well for continued success in the coming quarters.
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