Balchem (BCPC) Reports Strong Q4 and Full Year Results

By Tamara Parker • Friday, February 16 09:56 • Permanent Link

Balchem Corporation (NASDAQ: BCPC) has reported its financial results for the fourth quarter and full year of 2023. The company posted quarterly net sales of $228.7 million, net earnings of $26.6 million, adjusted EBITDA of $55.4 million, and free cash flow of $56.0 million.

Ted Harris, Chairman, CEO, and President of Balchem, expressed his satisfaction with the company's performance, stating, "The fourth quarter capped off another solid year for Balchem. We delivered record fourth quarter adjusted EBITDA and very strong free cash flow, despite the continued challenging demand environment in parts of our portfolio. I am particularly pleased with our human nutrition and health segment posting record fourth quarter sales and earnings."

The company's full year 2023 results also demonstrated resilience in a challenging and volatile market environment. Although net sales were down modestly, Balchem delivered record adjusted EBITDA and generated record free cash flow. Harris added, "I am excited about 2024, and I believe the company is well positioned to deliver both top and bottom-line growth on a full-year basis, while continuing to advance our strategic growth initiatives that will ensure our growth over the longer term."

Financial highlights for the fourth quarter of 2023 include: GAAP net earnings of $26.6 million, a 24.5% increase from the prior year Adjusted EBITDA of $55.4 million, a 5.4% increase from the prior year Record human nutrition & health segment sales of $138.0 million, a 5.8% increase compared to the prior year quarter Cash flows from operations were $67.4 million for the fourth quarter 2023, with record quarterly free cash flow of $56.0 million, up 103.4% from the prior year quarter

For the full year 2023, Balchem reported: GAAP net earnings of $108.5 million, a 3.0% increase from the prior year Adjusted EBITDA of $230.9 million, a 7.1% increase from the prior year * Record human nutrition & health segment sales of $550.8 million, a 4.5% increase compared to the prior year

Looking ahead, Harris expressed optimism about the company's future, stating, "I am excited about our future."

The company's shares have moved 0.1%, and are now trading at a price of $146.59.

Balchem Corporation's full 8-K submission is available here.

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