Corbion first half 2019 results

Corbion reported H1 2019 sales of € 471.9 million, an increase of 7.4% compared to H1 2018, mostly because of positive currency effects. Organic sales growth was 0.9%. Adjusted EBITDA in H1 2019 decreased by 0.1% to € 71.4 million due to 0.6% 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%; volume growth was 1.8%
  • Adjusted EBITDA was € 71.4 million (H1 2018: € 71.5 million), an organic increase of 0.6% (including 5.3% positive effect from IFRS 16 implementation)
  • Adjusted EBITDA margin was 15.1% (H1 2018: 16.3%)
  • Adjustments at EBITDA level of € +3.4 million
  • Operating result was € 46.4 million (H1 2018: 50.2 million)
  • Free cash flow was € -29.3 million (H1 2018: €-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)
€ millionYTD 2019YTD 2018Total growthOrganic growth
Net sales471.9 439.2 7.4%0.9%
Adjusted EBITDA71.4 71.5 -0.1%0.6%
Adjusted EBITDA margin 15.1%16.3%  
Operating result46.4 50.2 -7.6%0.8%
ROCE10.0%14.9%  

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