Kyle May's questions to Balchem Corp (BCPC) leadership • Q3 2024
Question
Kyle May asked for an update on the M&A market and alternative uses of cash, guidance on operating margins for Q4, and additional perspective on the stabilization of the European feed market within the ANH segment.
Answer
CFO Carl Bengtsson noted that M&A deal flow is improving but not yet booming, and that Balchem's capital allocation strategy remains focused on organic growth, M&A, dividends, and then share buybacks. He anticipates operating margins will moderate slightly from current highs as ANH returns to growth and raw material deflationary benefits cease. Bengtsson also stated that the European ANH market has stabilized at a lower level due to low-cost imports and is expected to remain at this level in the near future, barring structural changes.