Corbion: first half-year 2024 results
Corbion, the Amsterdam-listed sustainable ingredients company that champions preservation through application of science, today publishes its results for the first half ending 30 June 2024.
Key highlights first half 20241:
- Organic sales growth -0.7% (Q2: +1.4%):
- Volume/mix +3.6% (Q2: +5.5%)
- Price -4.3% (Q2: -4.1%)
- Continued Operations:
- Sales € 637.1 million (Q2: € 336.7 million)
- Adjusted EBITDA € 86.1 million (Q2: € 51.6 million)
- Adjusted EBITDA organic growth + 21.9% (Q2: 46.1%)
- Operating profit € 33.6 million (Q2: € 22.0 million)
- Free Cash Flow € 336.5 million, € 12.7 million when excluding divestment proceeds
- Divestment of non-core US Emulsifier business completed on April 2nd
- Covenant net debt/covenant EBITDA at half year end was 2.2x
- Double digit growth in sales and Adjusted EBITDA in Health & Nutrition
- Positive volume/mix in Functional Ingredients & Solutions driven by our Food segment
- TotalEnergies Corbion joint-venture: sales € 66.4 million; an organic growth of 14.1%
- Confirmation of FY24 outlook
€ million | H1 2024 | H1 2023 | H1 growth | H1 Organic growth | Q2 2024 | Q2 2023 | Q2 growth | Q2 Organic growth | |
| Continued Operations | |||||||||
| Sales | 637.1 | 641.7 | -0.7% | -0.7% | 336.7 | 329.2 | +2.3% | +1.4% | |
| Adjusted EBITDA | 86.1 | 69.0 | +24.8% | +21.9% | 51.6 | 33.6 | +53.6% | +46.1% | |
| Adjusted EBITDA margin | 13.5% | 10.8% | 15.3% | 10.2% | |||||
| Operating profit | 33.6 | 30.2 | +11.3% | 3.6% | 22.0 | 14.7 | +49.7% | 32.7% |
Note: For non-GAAP definition see page 23
Commenting on today’s results, Olivier Rigaud, CEO, stated: “We delivered a strong performance in the first half of 2024 demonstrating the underlying strength of our business. I am pleased to see continuation of our positive volume/mix growth and Adjusted EBITDA growth as well as a continuation of our positive free cash flow delivery. We made good progress in the implementation of our restructuring program, delivering increased margins. Building on Corbion’s first half performance, where we saw strong Adjusted EBITDA growth, we are well on-track to deliver in line with our full year guidance.
We saw positive momentum in Functional Ingredients & Solutions with strong volume/mix in our Food segment, partially offset the Biochemicals segment where we continue to see temporary softness in some markets. In line with our earlier guidance, pricing has been lower as a result of price reductions in some areas following input cost relaxation. In Health & Nutrition, we continue to see strong double digit growth in both sales and adjusted EBITDA mainly driven by the Nutrition segment (Omega-3 DHA within aquaculture and pet nutrition).
Upon the completion of the start-up phase of our new circular lactic acid plant in Thailand, we are expecting to gradually ramp up. The first volumes of lactic acid from this new plant have been produced.
Following the divestment of Emulsifiers, new targets have been submitted for validation to the Science Based Targets initiative. These increased targets are aligned with the ambition of keeping global warming below 1.5°C. The ambition is to reduce our absolute scope 1 and 2 emissions with 42% and our absolute scope 3 emissions with 25% by 2030.”
1) Following the divestment of the Emulsifier business, results are now presented on “Continued Operations (in line with IFRS 5).
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