NASDAQ$BCPC

Balchem Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Balchem's second quarter performance in 2022 was marked by record sales and adjusted EBITDA, driven by growth across all segments and strategic acquisitions.

Balchem Corporation reported a strong second quarter in 2022, with record net sales of $236.7 million and net earnings of $29.8 million. The company's performance was driven by growth in all three segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products. Balchem also completed the acquisition of Kappa Bioscience AS, expanding its presence in the human nutrition industry.

  • Record net sales of $236.7 million, a 17.0% increase compared to the prior year quarter.
  • GAAP net earnings were $29.8 million, a 31.0% increase from the prior year.
  • Adjusted EBITDA reached a record $56.5 million, a 12.6% increase from the prior year.
  • Completed the acquisition of Kappa Bioscience AS on June 21, 2022.

Headline financials

Total Revenue

$237M

Previous: $202M+17.0%
EPS (adj)

$0.93

Previous: $0.70+32.9%
Adjusted EBITDA

$56.5M

Previous: $50.1M+12.6%
Capital Expenditures

-$20.1M

Previous: -$13.1M-53.2%
Free Cash Flow

$9.67M

Previous: $9.61M+0.7%
Net Income

$29.8M

Previous: $22.7M+31.0%
Operating Income

$39.9M

Previous: $30.6M+30.5%
Gross Profit

$71.9M

Previous: $59.4M+20.9%
Cash & Equivalents

$76.2M

Previous: $79.9M-4.7%
Total Assets

$1.61B

Previous: $1.17B+36.9%
Stock-Based Comp

$3.81M

Previous: $3.29M+15.8%

Revenue & EPS history

Balchem · Revenue · Quarterly

$237M

Q2 2022+17%vs Q2 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Balchem · $231M total across 3 segments · Q2 2022

  • Human Nutrition & Health
    $132M+18.1%
  • Animal Nutrition & Health
    $62.6M+14.9%
  • Specialty Products
    $36.6M+7.7%

Forward guidance

The second quarter of 2022 was another excellent quarter for Balchem. We delivered very strong financial results, despite ongoing macro-economic challenges. The Balchem team continues to respond extremely well to the ongoing supply chain, workforce availability, and inflationary challenges. Our ability to deliver these strong financial results while managing through these challenges, is a great testament to the resilience and strength of our business model as well as the incredible dedication and capabilities of the Balchem team.

Tailwinds

  • The second quarter of 2022 was another excellent quarter for Balchem.
  • We delivered very strong financial results, despite ongoing macro-economic challenges.
  • The Balchem team continues to respond extremely well to the ongoing supply chain, workforce availability, and inflationary challenges.
  • Our ability to deliver these strong financial results while managing through these challenges, is a great testament to the resilience and strength of our business model as well as the incredible dedication and capabilities of the Balchem team.
  • We are very excited about the recent acquisition of Kappa Biosciences and the strength it brings to our company and I would like to, once again, welcome the Kappa team to the broader Balchem team!

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.0%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.9%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+25.0%

Q1 2014

Best reaction

-16.3%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.8%-7.0%-9.7%
Q4 2025-2.3%+2.6%-7.4%
Q3 2025+4.1%+3.9%+1.3%
Q1 2025-2.6%-1.5%+4.8%
Q4 2024+1.5%+7.0%-0.1%
Q3 2024+2.8%+1.6%+9.8%
Q2 2024+3.9%+1.5%-1.2%
Q1 2024-1.8%-3.0%-8.8%
Q4 2023+7.4%+5.0%+6.8%
Q3 2023-5.0%-4.1%+1.1%
Q2 2023+4.8%+5.0%+7.1%
Q1 2023+1.7%+0.5%+5.2%
Q4 2022-2.0%-0.2%-7.7%
Q3 2022-0.6%-0.5%+5.4%
Q2 2022-5.2%-6.6%+2.3%
Q1 2022+1.6%-0.9%-10.5%
Q4 2021+1.0%-0.7%+1.2%
Q3 2021-0.8%+2.3%+7.9%
Q2 2021-0.8%-2.5%+2.7%
Q1 2021-0.2%-0.1%+0.5%
Q4 2020+5.4%+6.4%+10.7%
Q3 2020-1.7%-0.5%+3.3%
Q2 2020+4.6%+4.7%+0.3%
Q1 2020-5.4%-3.9%-9.3%
Q4 2019-10.7%-13.3%-15.9%
Q3 2019+2.9%+1.2%-0.8%
Q2 2019-16.3%-15.9%-13.5%
Q1 2019+1.1%+4.0%+9.4%
Q4 2018+8.0%+12.4%+10.7%
Q3 2018-4.9%-4.9%-13.7%
Q2 2018+1.1%+1.3%+10.1%
Q1 2018-1.3%+2.2%+7.9%
Q4 2017+2.3%+5.9%+8.6%
Q3 2017+1.0%-0.7%+1.3%
Q2 2017-2.6%-3.9%-1.8%
Q1 2017-3.3%-5.3%-1.8%
Q4 2016+5.2%+2.2%-2.5%
Q3 2016-4.5%+0.8%+12.3%
Q2 2016+1.3%+2.0%+8.7%
Q1 2016+0.3%
Q4 2015-0.4%
Q3 2015-2.0%
Q2 2015+5.2%
Q1 2015-0.5%
Q4 2014-3.4%
Q3 2014+6.7%
Q2 2014+2.5%
Q1 2014+25.0%
Q4 2013+0.4%
Q3 2013-4.9%
Q2 2013+1.3%
Q1 2013-2.3%
Q4 2012+0.8%
Q3 2012-10.5%
Q2 2012+5.9%
Q1 2011+2.1%
Q4 2011+2.1%
Q1 2012+2.4%
Q1 2010-4.1%
Q4 2009-4.1%
Q3 2010-3.2%
Q3 2011-3.2%
Q2 2011+1.0%
Q4 2010+1.0%
Q2 2010+1.0%

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