Balchem Corporation (NASDAQ: BCPC) has disclosed its financial performance for the fourth quarter of the 2023 fiscal year, which concluded on December 31, 2023. The company reported quarterly net sales of $228.7 million, quarterly net earnings of $26.6 million, adjusted EBITDA(a) of $55.4 million, and free cash flow(a) of $56.0 million.
Key Financial Highlights for the Fourth Quarter of 2023:
- GAAP net earnings stood at $26.6 million, marking a notable increase of 24.5% compared to the previous year.
- Adjusted EBITDA amounted to $55.4 million, reflecting a 5.4% increase from the same quarter of the prior year.
- GAAP earnings per share reached $0.82, compared to $0.66 in the corresponding quarter of the previous year. Adjusted earnings per share(a) were $0.95, compared to $0.94 in the same period of the prior year.
- Cash flows from operations for the fourth quarter of 2023 were $67.4 million, with record quarterly free cash flow(a) of $56.0 million, representing a substantial increase of 103.4% from the same quarter of the previous year.
- The Human Nutrition & Health segment achieved record sales of $138.0 million, marking a 5.8% increase from the prior year quarter, with record earnings from operations of $25.2 million, up 43.8%.
Ted Harris, Chairman, CEO, and President of Balchem, expressed 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.”
Full Year 2023 Financial Highlights:
- GAAP net earnings for the full year 2023 were $108.5 million, reflecting a 3.0% increase from the prior year, resulting in GAAP earnings per share of $3.35, compared to $3.25 in the previous year.
- Adjusted EBITDA for the full year amounted to $230.9 million, a 7.1% increase from the prior year.
- Cash flows from operations totaled $183.8 million for 2023, with record full-year free cash flow of $151.1 million.
- The Human Nutrition & Health segment achieved record sales of $550.8 million, marking a 4.5% increase from the prior year, with record earnings from operations in both the Human Nutrition & Health and Specialty Products segments, increasing by 24.7% and 5.5%, respectively.
Mr. Harris emphasized the resilience of Balchem’s business model in a challenging market environment, stating, “Our full year 2023 results highlight the resilience of our business model in a challenging and volatile market environment. While full year 2023 net sales were down modestly, we delivered record adjusted EBITDA and generated record free cash flow, allowing us to further strengthen our balance sheet, while returning $25.4 million to our shareholders in a double-digit increase to our dividend, all while continuing to advance our strategic growth initiatives.”
The company will hold a quarterly conference call on Friday, February 16, 2024, at 11:00 AM Eastern Time (ET) to review fourth quarter 2023 results. Ted Harris, Chairman, President, and CEO, along with Martin Bengtsson, CFO, will host the call. Interested parties can listen to the conference by calling toll-free 1-877-407-8289 (local dial-in 1-201-689-8341), five minutes prior to the scheduled start time of the conference call.
