Balchem(US:BCPC)2025-02-21 22:22Financial 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].