Corbion announces ”significant progress”

7 Mar 2016

Corbion has announced that it has made significant progress in the execution of its Disciplined Value Creation strategy during 2015, resulting in an organic EBITDA increase of 16.2% in 2015.

Corbion announces ”significant progress”

Corbion has announced that it has made significant progress in the execution of its Disciplined Value Creation strategy during 2015. Higher growth rates combined with the implementation of the Streamline productivity improvement program resulted in an organic EBITDA increase of 16.2% in 2015.

In Q4 2015 sales were € 230.4 million, an increase of 14.9% compared to Q4 2014. EBITDA excluding one-off items in Q4 2015 increased by 9.9% to € 33.2 million. Net sales in FY 2015 increased by 19.2% to € 918.3 million, representing 4.6% organic growth.

“I am very pleased with the progress we have made in 2015 in executing our strategy,” said Tjerk de Ruiter, CEO of Corbion. “As anticipated, Q4 profit growth was lower than in previous quarters partially due to several non-structural items. In 2016, our priorities under the Disciplined Value Creation strategy will be the completion of Streamline and driving profitable top-line growth. After successfully completing the pre-engineering phase we have commenced basic engineering for a 75kT PLA plant in Thailand, expected to be operational in the second half of 2018."

Corbion said that it remains confident about its indicated 2015-2018 guidance range. Even though market conditions could become more difficult in 2016, the company said that its global exposure is geared towards mature markets, which should dampen the impact of a slowdown. For the Food business segment it expects a continued steady sales growth pattern, while the Biochemicals business segment is expected to show improved sales growth from Q2 onwards. Corbion expects its Streamline program to reach its target annual savings level of €20 million on a run-rate basis before the end of 2016. Volatility in Biobased Innovations EBITDA will remain high due to irregular product and sales order patterns and spend phasing of the company’s major innovation initiatives.