Corbion NV: announces first half-year 2023 results

Amsterdam / NL. (cb) Dutch Corbion NV, the Amsterdam-listed sustainable ingredients company that champions preservation through application of science, today publishes its results for the first half ending 30 June 2023. Key highlights first half 2023:

  • Sales EUR 738.0 million; an increase of 7.4 percent, of which organic 6.7 percent
  • Adjusted Ebitda EUR 96.8 million; an increase of 7.7 percent, of which organic 13.3 percent
  • Operating profit EUR 53.6 million; a decline of 9.3 percent due to last year’s book profit of EUR 9.3 million related to the sale of a US warehouse. Organic growth of 12.1 percent
  • Core Sales: organic growth 7.9 percent
    • higher prices more than offsetting decline in volume/mix
    • Algae Ingredients: strong volume/mix growth of +69.3 percent, launch in human nutrition
    • Biomedical breakthrough: FDA approval for new drug delivery product
    • PLA market showing early signs of recovery
    • Vinegar plant acquisition: insource vinegar production
  • Core Adjusted Ebitda: organic growth 15.7 percent
  • Free Cash Flow EUR -37.4 million (H1 2022: EUR -68.6 million); positive Free Cash Flow in Q2
  • Covenant net debt/covenant Ebitda at half year end was 3.4x (H1 2022: 3.3x)
(EUR in million) H1-2023 H1-2022 Total growth Organic growth
Sales 738.0 687.4 7.4% 6.7%
Adjusted Ebitda 96.8 89.9 7.7% 13.3%
Adjusted Ebitda margin 13.1% 13.1%
Operating profit 53.6 59.1 -9.3% 12.1%
Core activities
Sales 641.7 591.7 8.5% 7.9%
Adjusted Ebitda 82.2 75.6 8.7% 15.7%
Adjusted Ebitda margin 12.8% 12.8%

Commenting on the results, CEO Olivier Rigaud stated: «We delivered a solid performance in the first half of 2023 demonstrating the underlying strength and resilience of our business. Despite a particularly challenging operating environment, we have delivered growth in both Sales and Adjusted Ebitda. Whilst we remain confident in our longer-term outlook, we anticipate the challenging operating environment to persist through the second half of this year.

«In Sustainable Food Solutions, growth was driven by pricing whilst experiencing volume reduction due to customer destocking and softer consumer markets. We continue to see a strong innovation pipeline and are making good progress on our expansion plans in product/market adjacencies to contribute to growth in the second half of 2023. In Lactic Acid + Specialties, we see a continuation in the temporary slowdown in some markets, with some early signs of recovery for our PLA business. Our biomedical business continues to perform well. The Algae Ingredients business delivered excellent volume/mix growth in aquaculture and created an extended portfolio and pipeline for petfood and human nutrition markets.

«We anticipate a positive free cash flow in H2 2023 following relaxation in input costs, operational efficiencies, further working capital optimization and our capital discipline. The divestment process of our emulsifiers business is continuing to progress and we anticipate concluding a transaction within 2023.»