Corbion Q3 2020 Interim Management Statement

Corbion reported sales of € 741.2 million in the first nine months of 2020, an increase of 1.7% due to organic net sales growth of 4.4% partly offset by currency effects. Organic net sales growth in core activities was 5.8%. Adjusted EBITDA in the first nine months increased organically by 17.3% to € 128.4 million due to improvements in all business segments.

“After navigating through a volatile first half of the year, the net impact of the COVID-19-pandemic in the third quarter is diminishing. The third quarter showed strong organic growth in our Core activities. I am therefore proud of this strong delivery by our people, working under continued challenging circumstances. Sustainable Food Solutions is showing organic growth above market growth as we continue to gain traction with our natural preservation solutions. Lactic Acid & Specialties continues to perform well in all segments with the notable exception of the medical biopolymers, which is adversely impacted by postponements of elective surgeries. In Incubator we are cautiously optimistic about the impact of our revised market approach on our algae-based omega-3 business. We are in the process of scaling up our newly installed lactic acid capacity in Thailand after completing the debottlenecking project in June. Additionally, we are expanding our debottlenecking investments to facilitate growth in the lactic acid markets. We recently announced the intention to build a new PLA plant in France by the Total Corbion PLA joint venture as PLA continues to develop very positively”, commented Olivier Rigaud, CEO.

Key financial highlights first nine months of 2020

• Net sales growth YTD was 1.7%; organic growth was 4.4% (5.8% for core activities)
• Adjusted EBITDA YTD was € 128.4 million, an organic increase of 17.3%
• Adjusted EBITDA margin YTD was 17.3% (17.6% for core activities)
• Operating result YTD was € 89.4 million, an organic increase of 28.8%

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