Corbion food ingredients segment returns to growth

by Jeff Gelski
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AMSTERDAM, THE NETHERLANDS — Corbion nv recorded third-quarter gains in sales and EBITDA as its food ingredients segment rebounded from a first-half decline, the Amsterdam-based company reported Oct. 24.

EBITDA of €28.4 million ($36 million) compared to €23.4 million ($29.7 million) in the previous year’s third quarter. Excluding one-off costs, EBITDA in the third quarter was €27.6 million, up 5.3% over €26.2 million. Third-quarter sales increased 5.4% to €198.6 million ($251.9 million) from €188.5 million ($239.1 million).

“Q3 came in with organic growth in all our business lines,” said Tjerk de Ruiter, chief executive officer of Corbion. “It is particularly encouraging to see growth return to the Biobased Food Ingredients segment after the decline in H1 of this year.”

In the first half, sales and EBITDA both slipped for Biobased Food Ingredients. The segment in the third quarter responded with sales of €149.2 million, up from €146.9 million in the previous year’s third quarter, and EBITDA of €27.8 million, up from €27.3 million.

Within Biobased Food Ingredients, the three market segments — bakery, meat and culinary, and foods — reported growth in volumes and sales in the third quarter. Price/mix decreased by 2.1% as a consequence of lower input prices.

Products launched last year partly drove higher sales in bakery although growth in the products has been slower than expected initially, according to Corbion. Regions outside the United States drove meat and culinary sales growth.

“In the U.S., 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,” Corbion said about meat and culinary.

Corbion’s Biochemicals segment in the third quarter had EBITDA of €5.1 million, up from €3.2 million in the previous year’s third quarter, and net sales of €49.4 million, up from €41.6 million.

Companywide through the first three quarters of the year, Corbion had EBITDA of €76.4 million, up from €72 million, and net sales of €569.6 million, up from €559 million. The Biobased Food Ingredients segment through three quarters had EBITDA of €78.2 million, down from €81.4 million, and net sales of €427 million, down from €434.1 million.

Central costs negatively affected Corbion’s companywide EBITDA by €16.9 million through the first three quarters, including €5.3 million in the third quarter.
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