“We are 65% in food,” explains Corbion CEO Olivier Rigaud, who indicates that exposure to the impact of the pandemic will be less. In the food industry, Corbion is growing even faster than the market.
In addition, the specialty chemicals company is benefiting from the increase in parcels. “There is a lot of demand for packaging materials these co-afternoons,” says Rigaud. “We notice this in our demand for biodegradable bioplastics.”
Despite an uncertain last quarter, the company is sticking to the targets set at the beginning of this year. Corbion expects net sales growth of between 4 and 7% and a profit margin of 15%.
“First Corbion results in coronacrisis”
This is what DFT reporter Gert van Harskamp thinks:
“The corona crisis seems to have passed Corbion. The specialty chemicals company is showing excellent results and is able to maintain the strict targets set at the beginning of the year. For investors, this company is a real help in an uncertain time. ”
Follow Gert van Harskamp on Twitter: @gertvanharskamp
According to the group, good organic growth was seen in the core activities in the past quarter and the impact of the corona crisis on the company decreased after the first half of the year was difficult to control due to uncertainties.
Turnover increased by 1.7% since the beginning of this year to € 741.2 million. Organic growth was 4.4%, but this was offset by exchange rate effects. The adjusted EBITDA result grew organically by 17.3% to € 128.4 million thanks to improvements in all business segments. In addition, the adjusted margin improved to 17.3%.
Corbion maintains its expectations for the whole of this year and says it is well on track to meet the targets. This includes an adjusted margin of more than 15%. Given the expansion of the lactic acid investment program, Corbion is raising the forecast for total investments in 2020 to € 90 million to € 100 million. That was € 80 million to € 90 million.
In September, it was announced that Corbion and oil and gas company Total are planning to build a new PLA bioplastics factory in France through their partnership Total Corbion PLA. This involves an investment of approximately € 200 million. PLA stands for polylactic acid. The planned location of the new factory is the French Grandpuits and the facility is expected to be operational in 2024.
Rigaud says demand for PLA continues to develop positively and that the Total Corbion PLA partnership is performing above expectations, which is underlined by the construction of a new PLA plant in Europe. Corbion has been alluding to an extra bioplastics factory for some time.
Investors reacted enthusiastically to the chemical company’s quarterly figures this morning. Half an hour after the opening of the stock exchange, the share was almost 3.5% higher.
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