Ram Selvaraju's questions to BALCHEM (BCPC) leadership • Q3 2025
Question
Ram Selvaraju inquired about the impact of international anti-dumping practices, specifically the status of European anti-dumping duties on China-origin choline, on Balchem's Human Nutrition and Health segment. He also asked for an update on the Orange County microencapsulation manufacturing facility's completion timeline and its expected impact on revenues and earnings quality. Additionally, Selvaraju questioned the future pace of debt repayment and the appropriate effective tax rate assumption for the remainder of 2025.
Answer
Ted Harris, Chairman, President, and CEO, confirmed that the EU's preliminary anti-dumping duties on China-origin choline chloride (for both human and animal use) are progressing, with a final vote expected by year-end, and would be in place for five years. He also detailed that the new Orange County microencapsulation plant, with twice the capacity, is expected to be completed by early 2027 and producing by mid-2027, supporting continued double-digit growth in this high-margin business. Martin Bengtsson, CFO, stated that the effective tax rate for 2025 is estimated around 22.5%. He added that the pace of debt repayment, while strong, would depend on M&A timing and anti-dilutive share repurchases.