Hamlet Protein reports strong growth, flags young animal nutrition market as buoyant

The company just released its annual report for 2020. New financing agreements increased the company’s…

The company just released its annual report for 2020.

New financing agreements increased the company’s liquidity and provided Hamlet Protein flexibility to pursue further growth, said the CEO, Erik Visser, who was appointed mid-2019 to lead a restructuring of the company and review of its strategy.

“We refinanced our debt with Nordea. The new financing agreements were tailored to the needs of Hamlet’s strategy plan and provide significantly increased liquidity. Furthermore, they resulted in reduced interest expenses, an extended maturity of the loan facilities, and added flexibility on the financial covenants,”​ he told us.

Cost levels were aligned with business size, a hands-on management team was appointed and a more customer focused approach to the business was introduced, said the CEO.

Hamlet Protein’s 2020 recurring EBITDA increased by 42{c93c05115eae7b2853c4a44517667f24b04dafe21463d3cb653b86ff5269b0fa} compared with 2019. It said this jump was driven by a volume growth of 19{c93c05115eae7b2853c4a44517667f24b04dafe21463d3cb653b86ff5269b0fa} versus prior year and improved cost management. APAC, which saw China recovering from African Swine Fever (ASF), was the main contributor, with a 58{c93c05115eae7b2853c4a44517667f24b04dafe21463d3cb653b86ff5269b0fa} volume increase.

“COVID-19 and ASF provided challenging market conditions in 2020. Even though the market demand for animal protein proved to be resilient, we saw different effects across the many markets we serve. Having invested in local resources in our most important export markets, we were well positioned to address changing conditions. And with the right COVID-19 measures in place we were able to secure an uninterrupted supply to our customers,”​ said Visser.