Corbion: Q3/2014 Interim Management Statement

Amsterdam / NL. (csm) Corbion, former CSM, reported Q3/2014 sales of 198.6 million EUR, an increase of 5.4 percent compared to Q3/2013. Both market segments contributed to overall organic sales growth of 5.7 percent. Ebitda excluding one-offs of 27.6 million EUR in Q3/2014 was up by 5.3 percent year-on-year. Corbion will present its strategic update on October 30th. «Q3 came in with organic growth in all our business lines. It is particularly encouraging to see growth return to the Biobased Food Ingredients segment after the decline in H1 of this year. The Biochemicals segment, although supported by an irregular order pattern, continued to deliver strong double digit growth despite a more difficult comparison base. Ebitda before one-off costs improved while we continued to invest in R+D as indicated. Next week, on October 30th, we will present our strategic update», commented Tjerk de Ruiter, CEO.

Key financial highlights Q3/2014:

  • Net Sales organic growth was 5.7 percent vs Q3/2013. Volume growth was 4.7 percent
  • Reported Ebitda was 28.4 million EUR (Q3/2013 23.4 million EUR). Ebitda excluding one-off costs grew by 5.3 percent (3.8 percent at constant currency) versus Q3/2013.
  • One-off contribution of 0.8 million EUR is due to the release of a provision related to the 2013 sale of the Bakery Supplies businesses
  • Ebitda margin excluding one-off costs was stable at 13.9 percent (Q3/2013: 13.9 percent)

Outlook

Corbion expects market circumstances to remain challenging in the fourth quarter, traditionally the weakest quarter of the year. For the Biobased Food Ingredients segment we continue to see some early signs of volume growth. In Biochemicals we face a difficult comparable, while the observed irregularity in Q3 order patterns could negatively impact growth rates as well.

Biobased Food Ingredients

Net sales of Biobased Food Ingredients increased from 146.9 million EUR to 149.2 million EUR; sales were up 1.8 percent year-on-year on an organic basis. The Ebitda margin before one-off costs decreased slightly from 18.9 percent to 18.6 percent. Ebitda before one-off costs were stable at 27.8 million EUR. Q3/2014 was a positive quarter for Biobased Food Ingredients with volume growth of 3.9 percent. All three market segments – Bakery, Meat + Culinary, and Foods – showed growth in volumes and sales in Q3. As a consequence of lower input prices, price/mix decreased by 2.1 percent. The higher sales in Bakery were partly driven by innovative products launched last year, although growth in these products has been slower than initially expected. Meat + Culinary sales growth was driven by regions outside the US. In the US, we see good results from our innovation portfolio (low cost in use products and clean label products), but not at a sufficient level to compensate for the continued pressure on our core sodium lactate products.

Biochemicals

Net sales of Biochemicals increased from 41.6 million EUR to 49.4 million EUR; sales were up 19.4 percent year-on-year on an organic basis. The Ebitda margin before one-off costs increased from 8.0 percent to 10.3 percent. Ebitda before one-off costs increased from 3.3 million EUR to 5.1 million EUR. Biochemicals continued to deliver a strong performance in Q3, although this was partly due to an irregular order pattern. Organic growth in Q3 was strong at 19.4 percent, where we had foreseen a more subdued growth rate. However, all segments showed double-digit growth rates except for the feed acidifiers segment. Our PLA bioplastics-related lactide sales continued to grow in Q3 from a small base, both with new smaller PLA entrants in China and novel applications for our heat stable PLA.

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