Corbion Reports Sales Uplift in Q1 with Food Business Topping Expectations

25 Apr 2016 --- Corbion has reported a 3.8 percent increase in year-on-year sales in the first quarter, driven by strong growth in its food ingredients business with a particularly strong showing in Latin America.

Sales at the Dutch food ingredients and biochemicals company were €228.3 million ($257 million), an uplift of 3.8 percent while EBITDA (earnings before interest, tax depreciation and amortisation) was up from €37.2 million ($42 million) to €42.7 million ($48 million) in the period.

While its food business performance well at its biochemical unit were down, as it suffered from reduced agrochemicals sales.

Tjerk de Ruiter, chief executive, said: “We’ve had an encouraging start of 2016. Growth in our Food business segment exceed expectations, while the margin development for Corbion as a whole improved significantly.”

“As expected, growth in the first quarter in our Biochemicals business segment was below our aspiration level, but we see evidence from the order pipeline that the trend will turn for the positive in the quarters to come.”

Across its food business, net sales were up 3.7 percent in the period. Bakery was helped by improved take-up of Corbion’s more advanced functional bakery blends.

Meat saw growth primarily driven by mix improvements in the portfolio and strong growth in Latin America. It was also helped by a limited number of customers moving  to lower-cost solutions.

There was good growth across dairy, confectionery, and beverages while Corbion is also hoping that its new acid power line will help support its expansion in confectionery.

Across its biobased ingredients business, sales were up 1.9 percent, helped by volume growth.

The EBITDA margin, excluding one-off items, was up from 18.2 percent to 19.6 percent, as it benefited from lower input costs.

Net sales were down 3.6 percent across its biochemical unit. This was down to reduced agrochemical sales, which was hurt by softer commodity pricing.