Balchem Corporation (BCPC) Bundle
A Brief History of Balchem Corporation
Company Overview
Balchem Corporation, established in 1967, is a leading global developer and manufacturer of specialty ingredients and products for the food, nutrition, and pharmaceutical industries. The company is headquartered in New Hampton, New York, and operates through multiple segments including Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products.
Recent Financial Performance
As of September 30, 2024, Balchem reported a significant increase in net earnings and sales compared to the previous year. The financial highlights for the nine months ended September 30, 2024 include:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Net Sales | $713,680 | $693,740 | 2.9% |
| Gross Margin | $249,869 | $227,063 | 10.0% |
| Operating Expenses | $114,404 | $106,205 | 7.7% |
| Earnings from Operations | $135,465 | $120,858 | 12.1% |
| Net Earnings | $94,892 | $81,895 | 15.9% |
Segment Performance
The performance across Balchem's segments for the nine months ended September 30, 2024, is as follows:
| Segment | Net Sales 2024 (in thousands) | Net Sales 2023 (in thousands) | % Change |
|---|---|---|---|
| Human Nutrition & Health | $452,955 | $412,777 | 9.7% |
| Animal Nutrition & Health | $156,384 | $180,162 | (13.2%) |
| Specialty Products | $99,898 | $94,961 | 5.2% |
| Other | $4,443 | $5,840 | (23.9%) |
Cash Flow and Capital Allocation
For the nine months ended September 30, 2024, Balchem's cash flow from operating activities was $129,682,000, compared to $116,355,000 in 2023, representing an increase of 11.5%. Key cash flows included:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Cash flows from operating activities | $129,682 | $116,355 | 11.5% |
| Cash flows used in investing activities | ($22,777) | ($22,948) | 0.7% |
| Cash flows used in financing activities | ($98,602) | ($83,175) | (18.5%) |
Stock Performance and Shareholder Returns
As of September 30, 2024, Balchem's stock performance reflected strong shareholder returns. The company has an approved stock repurchase program with total authorizations of 3,763,038 shares. Since inception, 3,140,215 shares have been purchased.
Future Outlook
Looking ahead, Balchem aims to continue expanding its product offerings and enhancing its market position through strategic acquisitions and investments. The company remains committed to increasing shareholder value while maintaining operational efficiency.
A Who Owns Balchem Corporation (BCPC)
Major Shareholders
As of 2024, Balchem Corporation (BCPC) has a diverse shareholder base, with significant holdings distributed among institutional investors and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 9.8% | Institutional Investor |
| The Vanguard Group, Inc. | 8.7% | Institutional Investor |
| SSgA Funds Management, Inc. | 5.3% | Institutional Investor |
| Dimensional Fund Advisors LP | 4.5% | Institutional Investor |
| Wellington Management Co. LLP | 4.1% | Institutional Investor |
| Insider Holdings | 1.2% | Individual Investors |
| Other Stakeholders | 57.4% | Retail Investors |
Stock Performance
As of early 2024, Balchem Corporation's stock has shown a stable performance with an average price of $113.75 per share, reflecting a year-to-date increase of 12.5%. The stock's performance can be attributed to strong financial results and growth in sales across its segments.
Recent Financial Highlights
In the nine months ended September 30, 2024, Balchem Corporation reported:
- Net Sales: $713.68 million
- Net Earnings: $94.89 million
- Gross Margin: $249.87 million (35% of net sales)
- Operating Expenses: $114.40 million
- Earnings from Operations: $135.47 million
Ownership Changes
Recent filings indicate that there have been minor changes in institutional ownership, with BlackRock increasing its stake from 9.5% to 9.8% over the last quarter. This suggests a growing confidence among institutional investors in Balchem's operational performance and market strategy.
Conclusion on Ownership Structure
Balchem Corporation's ownership structure reflects a healthy mix of institutional and retail investors, with institutional investors holding a significant portion of the shares. This diverse ownership base is indicative of the company's robust market position and future growth potential.
Balchem Corporation (BCPC) Mission Statement
Overview
Balchem Corporation is dedicated to providing innovative solutions and high-quality products that enhance the nutrition and health of people and animals, while also improving operational efficiencies within the industries it serves. The mission emphasizes a commitment to sustainability, safety, and integrity in all operations.
Core Values
- Innovation: Constantly seeking new ways to enhance product offerings and operational processes.
- Quality: Delivering superior products that meet the highest standards of safety and effectiveness.
- Sustainability: Implementing practices that minimize environmental impact and promote long-term viability.
- Integrity: Upholding ethics and transparency in all business dealings.
Financial Performance
The financial performance of Balchem Corporation reflects its successful execution of its mission. For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Net Sales | $713,680 | $693,740 | 2.9% |
| Gross Margin | $249,869 | $227,063 | 10.0% |
| Operating Expenses | $114,404 | $106,205 | 7.7% |
| Earnings from Operations | $135,465 | $120,858 | 12.1% |
| Net Earnings | $94,892 | $81,895 | 15.9% |
Business Segments
Balchem operates through several business segments, each contributing to the overarching mission of enhancing nutrition and health. The financial performance of these segments for the nine months ended September 30, 2024 is as follows:
| Segment | Net Sales (in thousands) | % Change |
|---|---|---|
| Human Nutrition & Health | $452,955 | 9.7% |
| Animal Nutrition & Health | $156,384 | (13.2)% |
| Specialty Products | $99,898 | 5.2% |
| Other | $4,443 | (23.9)% |
Strategic Initiatives
To further its mission, Balchem has undertaken several strategic initiatives, including:
- Research and Development: Investing in R&D to innovate and improve product offerings.
- Market Expansion: Exploring new markets to broaden reach and increase market share.
- Sustainability Efforts: Implementing eco-friendly practices across operations to reduce environmental impact.
Recent Developments
Balchem's commitment to its mission is reflected in its recent financial results, with significant improvements across key metrics:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Net Sales | $239,940 | $229,948 | 4.3% |
| Gross Margin | $85,361 | $76,544 | 11.5% |
| Operating Expenses | $37,369 | $32,930 | 13.5% |
| Net Earnings | $33,837 | $29,075 | 16.4% |
Balchem continues to align its operational strategies with its mission statement, ensuring sustainable growth and innovation across its business segments.
How Balchem Corporation (BCPC) Works
Business Overview
Balchem Corporation (BCPC) operates primarily in the health and nutrition sectors, providing specialized ingredient products. The company segments its operations into three main categories:
- Human Nutrition & Health
- Animal Nutrition & Health
- Specialty Products
Financial Performance
As of September 30, 2024, Balchem reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales | $239,940,000 | $229,948,000 | +4.3% |
| Gross Margin | $85,361,000 | $76,544,000 | +11.5% |
| Operating Expenses | $37,369,000 | $32,930,000 | +13.5% |
| Earnings from Operations | $47,992,000 | $43,614,000 | +10.0% |
| Net Earnings | $33,837,000 | $29,075,000 | +16.4% |
Segment Performance
For the nine months ended September 30, 2024, Balchem's net sales by segment were as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| Human Nutrition & Health | $452,955,000 | $412,777,000 | +9.7% |
| Animal Nutrition & Health | $156,384,000 | $180,162,000 | -13.2% |
| Specialty Products | $99,898,000 | $94,961,000 | +5.2% |
| Other | $4,443,000 | $5,840,000 | -23.9% |
Operating Expenses and Margins
In the nine months ending September 30, 2024, Balchem's operating expenses were reported at:
| Expense Type | 2024 Amount | 2023 Amount | % Change |
|---|---|---|---|
| Operating Expenses | $114,404,000 | $106,205,000 | +7.7% |
| Gross Margin | $249,869,000 | $227,063,000 | +10.0% |
| Operating Margin | 19.0% | 17.4% | +1.6% |
Cash Flow and Capital Resources
Cash flow metrics for the nine months ended September 30, 2024:
| Cash Flow Type | 2024 Amount | 2023 Amount | % Change |
|---|---|---|---|
| Cash Flows from Operating Activities | $129,682,000 | $116,355,000 | +11.5% |
| Cash Flows Used in Investing Activities | ($22,777,000) | ($22,948,000) | +0.7% |
| Cash Flows Used in Financing Activities | ($98,602,000) | ($83,175,000) | -18.5% |
Stockholder Equity
As of September 30, 2024, Balchem's stockholder equity was:
| Equity Component | Value |
|---|---|
| Total Stockholders' Equity | $1,177,226,000 |
| Retained Earnings | $992,380,000 |
| Accumulated Other Comprehensive Income | $14,503,000 |
Debt and Liabilities
As of September 30, 2024, the company's debts included:
| Debt Type | Amount |
|---|---|
| Current Lease Liabilities | $3,403,000 |
| Non-Current Lease Liabilities | $14,887,000 |
Tax Considerations
For the nine months ended September 30, 2024, Balchem reported:
| Tax Metric | 2024 Amount | 2023 Amount | % Change |
|---|---|---|---|
| Income Tax Expense | $27,077,000 | $22,099,000 | +22.5% |
| Effective Tax Rate | 22.2% | 21.3% | +0.9% |
How Balchem Corporation (BCPC) Makes Money
Revenue Segments
Balchem Corporation generates revenue through three primary segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products. For the nine months ended September 30, 2024, net sales by segment were as follows:
| Segment | Net Sales (in thousands) | 2024 | 2023 | % Change |
|---|---|---|---|---|
| Human Nutrition & Health | $452,955 | $412,777 | 9.7% | |
| Animal Nutrition & Health | $156,384 | $180,162 | (13.2%) | |
| Specialty Products | $99,898 | $94,961 | 5.2% | |
| Other | $4,443 | $5,840 | (23.9%) | |
| Total | $713,680 | $693,740 | 2.9% |
Human Nutrition & Health
This segment is the largest revenue contributor, with sales driven by minerals and nutrients. In the nine months ended September 30, 2024, sales increased by $40,178, primarily due to volume and mix contributing 8.6% and average selling prices contributing 1.2%.
Animal Nutrition & Health
Sales in this segment decreased by $23,778 during the same period, attributed to lower sales in both monogastric and ruminant species markets, with average selling prices contributing a negative 7.4% and volume and mix contributing a negative 5.9%.
Specialty Products
This segment recorded an increase of $4,937 in sales, largely due to higher sales in the performance gases market. Average selling prices contributed 3.7% and volume and mix contributed 1.5% to this growth.
Overall Financial Performance
For the nine months ended September 30, 2024, Balchem's total gross margin reached $249,869, up from $227,063 in 2023, reflecting a 10% increase. The gross margin as a percentage of net sales improved to 35.0% from 32.7%.
Operating Expenses
Operating expenses for the nine months increased to $114,404, compared to $106,205 in the previous year, representing a 7.7% increase.
Earnings from Operations
Earnings from operations for the nine-month period were $135,465, marking a 12.1% increase from $120,858 in 2023.
Net Earnings
Net earnings for the nine months ended September 30, 2024, totaled $94,892, compared to $81,895 in 2023, reflecting a 15.9% increase.
Geographic Revenue Distribution
The geographic distribution of revenue for the nine months ended September 30, 2024, is as follows:
| Geography | Net Sales (in thousands) | 2024 | 2023 |
|---|---|---|---|
| United States | $541,768 | $515,099 | |
| Foreign Countries | $171,912 | $178,641 | |
| Total | $713,680 | $693,740 |
Royalty Revenue
In addition to product sales, Balchem also generates royalty revenue, which totaled $1,306 for the nine months ended September 30, 2024, down from $2,233 in the same period in 2023.
Cash Flow and Capital Resources
Cash flows from operating activities for the nine months ended September 30, 2024, were $129,682, compared to $116,355 in 2023, indicating an 11.5% increase.
Stockholder Equity
As of September 30, 2024, total stockholders' equity stood at $1,177,226, compared to $992,380 at the end of 2023.
Conclusion on Financial Health
With a diverse revenue stream across various segments and geographic locations, Balchem Corporation continues to demonstrate solid financial performance and growth potential as of 2024.
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Article updated on 8 Nov 2024
Resources:
- Balchem Corporation (BCPC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Balchem Corporation (BCPC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Balchem Corporation (BCPC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.