Corbion: announces first half 2019 results

Amsterdam / NL. (cb) Corbion reported H1 2019 sales of EUR 471.9 million, an increase of 7.4 percent compared to H1 2018, mostly because of positive currency effects. Organic sales growth was 0.9 percent. Adjusted Ebitda in H1 2019 decreased by 0.1 percent to EUR 71.4 million due to 0.6 percent organic growth, positive currency effects, more than offset by a negative impact of the consolidation of the acquired Algae Ingredients plant in Brazil.

«In the first half I was pleased to see a continued acceleration in the organic sales growth rates for our important Food business segment. Ingredient Solutions showed a mixed performance and ended below the targeted sales growth bandwidth  as the Biochemicals business segment was facing significant headwinds in Electronics and Agrochemicals. Our Ebitda margins remained at a healthy level in both Food and Biochemicals. In Innovation Platforms we continued on our growth trajectory in the first half. The Total Corbion PLA joint venture saw a very strong performance in H1 2019, supported by positive market developments.

I would like to thank everybody for their support in the past 5 years. It has been my privilege to have served as Corbion’s CEO. As I step down, I will be handing over to Olivier Rigaud. I would like to wish Olivier and all Corbion colleagues all the best in taking the business forward», said Tjerk de Ruiter, CEO.

Key financial highlights first half of 2019

• Net sales organic growth was 0.9 percent; volume growth was 1.8 percent
• Adjusted Ebitda was EUR 71.4 million (H1 2018: EUR 71.5 million), an organic increase of 0.6 percent (including 5.3 percent positive effect from IFRS 16 implementation)
• Adjusted Ebitda margin was 15.1 percent (H1 2018: 16.3 percent)
• Adjustments at Ebitda level of EUR +3.4 million
• Operating result was EUR 46.4 million (H1 2018: 50.2 million)
• Free cash flow was EUR -29.3 million (H1 2018: EUR-16.3 million); the decline is mostly due to the acquisition of Granotec do Brazil (25 April 2019)
• Net debt/Ebitda at half-year end was 2.1x (year-end 2018: 1.8x)

EUR in millions	YTD 2019	YTD 2018	Total growth	Organic growth
Net sales	471.9	439.2	7.4%	0.9%
Adjusted Ebitda	71.4	71.5	-0.1%	0.6%
Adjusted Ebitda margin	15.1%	16.3%
Operating result	46.4	50.2	-7.6%	0.8%
ROCE	10.0%	14.9%