Balchem Corporation Reports Strong Q3 and Nine-Month Results with Increased Net Sales, Gross Margin, and Net Earnings

Balchem Corporation reported a solid performance for the third quarter and the first nine months of 2024, with notable increases in net sales, gross margin, and net earnings compared to the same periods in 2023.

For the three months ended September 30, 2024, net sales reached $239.9 million, up from $229.9 million in the prior year, marking an increase of $10.0 million. The nine-month figures also reflected growth, with net sales totaling $713.7 million, compared to $693.7 million in 2023, an increase of $19.9 million. The Human Nutrition & Health segment was a key driver, with sales rising to $152.3 million, a 5.4% increase from $144.5 million in Q3 2023. The Specialty Products segment also performed well, growing by 10.6% to $33.2 million. However, the Animal Nutrition & Health segment saw a decline of 1.9%, attributed to lower average selling prices.

Gross margin for Q3 2024 improved to $85.4 million from $76.5 million in Q3 2023, driven by higher sales and a favorable product mix. For the nine months, gross margin increased to $249.9 million from $227.1 million. Earnings from operations for the third quarter rose to $48.0 million, up from $43.6 million, while for the nine months, earnings from operations reached $135.5 million, compared to $120.9 million in the previous year.

Net earnings for Q3 2024 were $33.8 million, an increase from $29.1 million in Q3 2023, while net earnings for the nine months rose to $94.9 million from $81.9 million. The earnings per share (EPS) also saw an uptick, with basic EPS for Q3 2024 at $1.05, compared to $0.91 in Q3 2023, and diluted EPS at $1.03 versus $0.90.

Operating expenses increased due to higher compensation-related costs and transaction costs, which rose by $3.8 million and $3.3 million, respectively. The effective tax rate for Q3 2024 was 22.9%, up from 20.3% in the prior year, influenced by reduced tax benefits from stock-based compensation and increased state taxes.

Balchem's cash and cash equivalents at the end of September 2024 were $73.7 million, a slight decrease from $76.9 million a year earlier. The company reported net cash provided by operating activities of $129.7 million for the nine months, compared to $116.4 million in 2023.

Strategically, Balchem continues to focus on enhancing technology and sustainability initiatives while managing its labor resources effectively. The company remains committed to its corporate social responsibility goals and has made significant investments in property, plant, and equipment, totaling $22.9 million for the nine months ended September 30, 2024.