Corbion's Food sales slip amid frozen dough troubles

by Jeff Gelski
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Corbion frozen dough
Corbion's Bakery segment struggled due to customer losses in frozen dough.
 

AMSTERDAM, THE NETHERLANDS — Food segment sales decreased 2.3% for Corbion nv over the first nine months of the fiscal year. Within Food, Bakery struggled due to challenges in Corbion executing its bakery channel strategy and customer losses in frozen dough.

Net sales of 495.6 million ($574.1 million) in the Food segment compared to €507.1 million in the first nine months of 2016. EBITDA excluding one-off items was €105.2 million ($121.9 million), down 4.6% from €110.3 million. Also within Food, meat sales increased as the shift toward natural preservatives continued to gain momentum in the United States.

The Food segment is within Corbion’s Biobased Ingredients business, which had nine-month net sales of 662.9 million, down 0.7% from 667.7 million. EBITDA excluding one-off items for Biobased Ingredients was 134.1 million, down 2.5% from 137.6 million.

 

Organic sales increased in the third quarter for Biobased Ingredients, said Tjerk de Ruiter, chief executive officer for Amsterdam-based Corbion, when financial results were given Oct. 27.

Tjerk De Ruiter, Corbion
Tjerk de Ruiter, c.e.o. of Corbion

“We keep our focus on sales recovery in Bakery and expect further gradual improvements to our organic sales growth in Biobased Ingredients,” he said. “Our EBITDA profitability remains well above our target level of 18% despite the higher sugar input costs.”

Companywide Corbion had nine-month net sales of 680.5 million, down 0.7% from 685.2 million. EBITDA excluding one-off items decreased 3.6% to 129.9 million from 134.8 million.

Corbion on Sept. 29 finalized the acquisition of most of TerraVia’s assets. TerraVia produces oils, specialty fats and powdered ingredients from microalgae. Corbion expects the acquisition will have a negative impact on EBITDA in the range of $7 million to $12 million in the fourth quarter. 
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