Financial Performance - Record net sales of $250.5 million, an increase of $10.9 million, or 4.5%, compared to the prior year quarter[5] - GAAP net earnings were $37.1 million, an increase of 27.8% from the prior year quarter[5] - Record Adjusted EBITDA was $66.3 million, an increase of 8.9% from the prior year quarter[5] - Net earnings for Q1 2025 were $37,053,000, a 28% increase from $28,986,000 in Q1 2024[21] - Adjusted net earnings for Q1 2025 were $40,017,000, compared to $33,584,000 in Q1 2024, representing a 19% increase[25] - EBITDA for Q1 2025 was $61,957,000, up from $55,273,000 in Q1 2024, indicating a 12% increase[27] Segment Performance - Human Nutrition and Health segment generated record sales of $158.5 million, an increase of $5.7 million, or 3.7% compared to the prior year quarter[8] - Animal Nutrition and Health segment generated quarterly sales of $57.3 million, an increase of $3.4 million, or 6.2% compared to the prior year quarter[8] - Specialty Products segment generated quarterly sales of $33.3 million, an increase of $1.7 million, or 5.3% compared to the prior year quarter[9] Cash Flow and Assets - Cash flows from operations were $36.5 million, with free cash flow of $31.0 million[12] - Free cash flow for Q1 2025 was $31,036,000, an increase from $26,815,000 in Q1 2024, marking an 15% growth[30] - Total assets as of March 31, 2025, were $1,617.6 million, an increase from $1,575.4 million at the end of 2024[19] Margins - Consolidated quarterly gross margin of $88.2 million increased by $6.7 million, or 8.2%, compared to the prior year comparable period[10] - Adjusted gross margin for Q1 2025 was $88,861,000, up from $82,218,000 in Q1 2024, reflecting a 8% increase[25] Tax and Dividends - The effective income tax rate for Q1 2025 was 22.7%, compared to 21.3% in Q1 2024[28] - Dividends paid in Q1 2025 totaled $28,263,000, compared to $25,555,000 in Q1 2024, reflecting an increase of 11%[21] Other Information - The company launched a new corporate website to enhance user experience and product insights[5] - Cash and cash equivalents at the end of Q1 2025 were $49,901,000, compared to $60,349,000 at the end of Q1 2024[21] - Capital expenditures for Q1 2025 were $5,559,000, down from $6,910,000 in Q1 2024, a decrease of 20%[21] - Proceeds from stock options exercised in Q1 2025 were $1,668,000, a significant decrease from $8,791,000 in Q1 2024[21]

MONTVALE, N.J., April 24, 2025 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC) reported today financial results for its 2025 fiscal first quarter ended March 31, 2025. For the quarter, the Company reported net sales of $250.5 million, net earnings of $37.1 million, adjusted EBITDA of $66.3 million, and free cash flowof $31.0 million. Ted Harris, Chairman, President and CEO of Balchem said, "The first quarter was an excellent start to the year for Balchem, with sales and earnings growth in all three s ...

Core Insights - Balchem Corporation published its 2024 Sustainability Report, highlighting its commitment to sustainability initiatives aimed at improving health and well-being globally [1][2] Sustainability Goals - The company aims to reduce greenhouse gas emissions and water usage by 25% by 2030, with a notable achievement of a 32% reduction in GHG emissions from the 2020 baseline in 2024 [2][4] - Water withdrawal was reduced by 15% in 2024 compared to the 2020 baseline, indicating progress towards the water usage reduction goal [4] Business Segments - Balchem operates in three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products, providing specialized ingredients for various industries [3] Alignment with Global Initiatives - The company celebrated its fourth anniversary of commitment to the UN Global Compact, aligning with principles on human rights, labor, environment, and anti-corruption [4] - Approximately 70% of Balchem's revenue supports UN Sustainable Development Goals, particularly SDG 2 (zero hunger), SDG 3 (good health and well-being), and SDG 12 (responsible consumption and production) [4] Employee Safety and Product Quality - In 2024, Balchem improved its Total Recordable Incident Rate (TRIR) to 0.57 and Lost Time Incident Rate (LTIR) to 0.21, reflecting enhanced safety measures and training [4]

Core Viewpoint - Blachem (BCPC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Blachem is projected to earn $5.10 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 29.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Blachem has risen by 9.8% [8]. Investment Implications - The upgrade to Zacks Rank 1 suggests that Blachem's underlying business is improving, which could lead to increased buying pressure and a rise in stock price [5][10]. - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a 'Strong Buy' rating, indicating Blachem's strong position among its peers [9][10].

Company Overview - Balchem Corporation develops, manufactures, and markets specialty ingredients aimed at improving health and well-being across various industries globally [4] - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [4] - The Human Nutrition & Health segment focuses on customized food and beverage ingredient systems and key nutrients for food, supplement, and pharmaceutical applications [4] - The Animal Nutrition & Health segment supplies products to various animal health markets [4] - Specialty Products offers specialty-packaged chemicals for healthcare and other industries, as well as chelated minerals for the agricultural market [4] Upcoming Events - A conference call is scheduled for April 24, 2025, at 11:00 AM Eastern Time to review the first quarter 2025 results [1] - First quarter results will be published before the market opens on the same day [2] - The conference call will be accessible via toll-free and local dial-in numbers, with a replay available for a limited time after the call [3]

Company Overview - Balchem Corporation is a global specialty ingredient manufacturer focused on health and nutrition markets [2] - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [2] - The Human Nutrition & Health segment provides customized food and beverage ingredient systems and key nutrients for food, supplement, and pharmaceutical applications [2] - The Animal Nutrition & Health segment supplies products to various animal health markets [2] - Specialty Products offers specialty-packaged chemicals for healthcare and other industries, as well as chelated minerals for the agricultural market [2] Upcoming Events - Balchem Corporation will participate in the BNP Paribas Exane 13th Consumer Ingredients Conference on March 11, 2025 [1] - Key executives attending the conference include Ted Harris (Chairman, CEO, and President), Martin Bengtsson (CFO), and Allison Baurichter (Senior Director Investor Relations) [1]

Company Overview - Balchem Corporation (NASDAQ: BCPC) specializes in performance ingredients and products that significantly contribute to various fields including nutrition, food, pharmaceuticals, animal health, medical device sterilization, plant nutrition, and industrial applications [1] Research Principles - Grassroots Trading focuses on providing objective, unbiased, and balanced research backed by solid data, avoiding emotional influences or preferences for companies [2] - The research emphasizes small- to mid-cap companies while also identifying potential opportunities in large- and mega-cap companies to cover the dynamic equity markets comprehensively [2]

Financial Performance - Balchem Corporation reported net sales of $953.684 million for the year ended December 31, 2024, an increase from $922.439 million in 2023, representing a growth of approximately 3.5%[186]. - The company's gross margin improved to $336.206 million in 2024, compared to $302.056 million in 2023, reflecting a gross margin percentage increase from 32.7% to 35.2%[187]. - Net earnings for 2024 were $128.475 million, up from $108.543 million in 2023, indicating a year-over-year increase of about 18.4%[187]. - Total net sales for the company in 2024 were $953.7 million, compared to $922.4 million in 2023, indicating an overall increase of 3.4%[290]. - Basic net earnings per common share increased to $3.97 in 2024 from $3.38 in 2023, reflecting a growth of about 17.4%[187]. - The company reported a net cash provided by operating activities of $181,999 thousand in 2024, slightly down from $183,761 thousand in 2023[195]. - Total dividends paid increased to $28,470 thousand in 2024, up from $25,542 thousand in 2023, reflecting a dividend of $0.87 per share[195]. Segment Performance - Human Nutrition and Health segment net sales reached $600.3 million for the year ended December 31, 2024, up from $550.8 million in 2023, representing a growth of 9.9%[290]. - Animal Nutrition and Health segment net sales were $214.7 million in 2024, a decrease from $238.3 million in 2023, reflecting a decline of 9.9%[290]. - Specialty Products segment net sales increased to $132.7 million in 2024 from $126.0 million in 2023, marking a growth of 5.3%[290]. - Gross margin for the Human Nutrition and Health segment improved to $221.8 million in 2024, up from $184.2 million in 2023, reflecting a margin increase of 20.5%[290]. - Earnings from operations for the company totaled $182.9 million in 2024, compared to $159.2 million in 2023, representing a growth of 14.9%[290]. Research and Development - Research and development expenses for the years ended December 31, 2024, 2023, and 2022 were approximately $16,793, $15,049, and $12,191, respectively, indicating a consistent investment in product innovation[30]. - The company continues to invest in scientific data and intellectual property to differentiate its products in the Human Nutrition and Health segment[285]. Acquisitions - The Company acquired Cardinal Associates Inc. and its Bergstrom Nutrition business on August 30, 2022, enhancing its portfolio in the Human Nutrition and Health segment[22]. - The acquisition of Kappa Bioscience AS on June 21, 2022, strengthened the Company's expertise in specialty vitamin K2, contributing to growth in the Human Nutrition and Health segment[22]. - The total consideration for the acquisition of Kappa was approximately $302.464 million, with total payments amounting to $333.112 million[237]. - Goodwill arising from the Kappa acquisition was $216.383 million, primarily due to expected synergies and the acquired workforce[238]. Capital Expenditures - Capital expenditures for 2024 were approximately $35,148, with investments aimed at expanding capacity in key product lines and improving process reliability[32]. - The company’s capital expenditures for 2025 are projected to range from $40,000 to $45,000, focusing on energy and water-saving projects and renewable energy opportunities[32]. Employee Metrics - As of December 31, 2024, the company employed approximately 1,361 full-time employees worldwide, with about 17% covered by collective bargaining agreements[41]. - The turnover rate for salaried employees was 9% in 2024, down from 11% in 2023, while the turnover rate for hourly employees decreased from 29% in 2023 to 21% in 2024[47]. - The recordable injury rate was 0.57, 1.39, and 1.17 for the years 2024, 2023, and 2022, respectively, indicating improvements in workplace safety[43]. Environmental and Sustainability Efforts - The company is committed to reducing greenhouse gas emissions and improving water efficiency as part of its sustainability strategy[49]. - The company is actively engaged in environmental remediation efforts at its Verona, Missouri facility, designated as a Superfund site[37]. - The Company reached a settlement with the EPA and DOJ in December 2024, agreeing to pay a $300 million civil penalty and invest $350 million in community projects[318]. Financial Position - The total assets of Balchem Corporation decreased to $1.575 billion in 2024 from $1.597 billion in 2023, a decline of approximately 1.4%[185]. - The total liabilities decreased significantly from $543.227 million in 2023 to $425.458 million in 2024, a reduction of approximately 21.7%[185]. - The company’s total stockholders' equity increased to $1,149,913 thousand by December 31, 2024, from $1,053,984 thousand in 2023[193]. - The company reported an increase in stock compensation expense to $16,675 thousand in 2024, compared to $16,052 thousand in 2023[195]. Tax and Compliance - The effective tax rate for 2024 was 22.8%, up from 20.9% in 2023, primarily due to an increase in certain foreign taxes[273]. - The total income tax provision for 2024 was $37,978,000, an increase from $28,718,000 in 2023[277]. - The company is in compliance with applicable environmental laws and regulations, with no material effect on its financial condition[39]. Debt and Financing - The total balance outstanding on the 2022 Credit Agreement was $190,000,000 as of December 31, 2024, down from $309,569,000 in 2023[268]. - The unused portion of the revolving loan amounted to $360,000,000 at December 31, 2024[269].

Core Viewpoint - Balchem Corporation is conducting its Q4 2024 earnings conference call to discuss financial results and future expectations [1]. Group 1: Company Overview - The conference call is hosted by Martin Bengtsson, CFO, and Ted Harris, Chairman, President, and CEO [2][3]. - The call includes a forward-looking statement, indicating that expectations may not be met due to various factors [4]. Group 2: Financial Reporting - The call will discuss non-GAAP financial measures, with reconciliations available in the earnings release [5].

Financial Data and Key Metrics Changes - Balchem achieved record full year sales of $954 million, growing 3.4% year-over-year, with record earnings from operations of $183 million, an increase of 14.9% [9] - Record adjusted EBITDA of $250 million, an increase of 8.4% from the prior year [9] - Fourth quarter consolidated revenues were $240 million, up 4.9% year-over-year, with GAAP earnings from operations increasing by 23.8% [17][20] - Adjusted EBITDA for Q4 was $63 million, an increase of 13.4%, with an adjusted EBITDA margin of 26.2%, up 200 basis points from the prior year [18][22] Business Line Data and Key Metrics Changes - Human Nutrition & Health segment generated sales of $147 million, an increase of 6.8% from the prior year, with earnings from operations increasing by 33.9% [25] - Animal Nutrition & Health segment generated quarterly sales of $58 million, a modest increase of 0.3%, with earnings from operations increasing by 7.2% [27] - Specialty Products segment delivered sales of $33 million, an increase of 6%, with earnings from operations increasing by 15.9% [29] Market Data and Key Metrics Changes - The Human Nutrition & Health segment saw strong growth in both nutrients and food ingredients, with nutrient business growing over 5% and food business over 7% in Q4 [42] - The Animal Nutrition & Health segment experienced a recovery in the ruminant market, while the monogastric market remained flat due to ongoing challenges [46][54] Company Strategy and Development Direction - Balchem continues to focus on innovation, launching new products such as K2VITAL DELTA and AminoShure-XL to support growth [11][12] - The company is committed to sustainability goals, aiming to reduce greenhouse gas emissions and water usage by 25% by 2030, with significant progress already reported [14][15] - The company announced a 10% increase in its annual dividend, marking the 16th consecutive year of double-digit growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth outlook despite geopolitical and macroeconomic uncertainties, particularly regarding tariffs [33] - The company is optimistic about 2025, expecting continued top and bottom line growth while advancing growth initiatives [34] Other Important Information - Balchem generated strong free cash flow of $147 million, allowing for debt reduction and a net debt leverage ratio of 0.6 times [10] - The effective tax rate for Q4 was 24.5%, an increase from 19.9% in the prior year, primarily due to higher foreign taxes [23] Q&A Session Summary Question: Contribution from nutrients versus food ingredients in Human Nutrition & Health - Management noted strong growth in the nutrients business and a return to healthy growth in food ingredient solutions, with Q4 seeing over 5% growth in nutrients and over 7% in food [42][44] Question: Outlook for Animal Nutrition & Health and European monogastric situation - Management indicated ongoing growth in the ruminant business while the monogastric market remains flat until the European situation is resolved, with a healthy dairy market supporting growth [54][51] Question: Marketing strategies for VitaCholine Pro-Flo and tariff impacts - Management plans to increase marketing efforts for VitaCholine Pro-Flo, emphasizing its benefits for adult health, while monitoring potential tariff impacts, particularly in China and Mexico [60][68] Question: Expectations for margins in 2025 and M&A market update - Management expects margins to remain strong, with potential risks from tariffs and supply chain impacts, while noting an increase in M&A deal flow but not yet a hot market [86][93]