Financial performance

Key figures

Results

Financial guidance Advance 2025

Corbion successfully achieved the targets for organic volume/mix growth, organic Adjusted EBITDA growth as well as free cash flow as guided by our Capital Markets Update early 2024.

We achieved our target for organic volume/mix growth with both business units (Functional Ingredients & Solutions and Health & Nutrition) contributing positively. The volume/mix growth within Functional Ingredients & Solutions has been driven by our Food business and Lactic Acid supplied to the joint venture TotalEnergies Corbion, with our Biochemicals business showing reduced sales. The organic volume/mix growth in Health & Nutrition has been driven by the Nutrition and Pharma businesses, with Biomedical Polymers being flat.

Our volume/mix performance, our focus on operational efficiencies, the successful implementation of our restructuring program, and our CapEx discipline resulted in a significant increase in free cash flow, putting Corbion well on track to meet and/or exceed the previously shared target of > € 125 million for the two years cumulatively.

Adjusted EBITDA margins in the Functional Ingredients & Solutions business unit came in below the mid-teens expectation, partly driven by the stranded costs resulting from the Emulsifiers business affecting the 2024 margins (ca 200bps). Mid-teen margin levels for the business unit remain the underlying ambition, and a significant increase is anticipated in 2025 driven by the announced pricing and cost-saving measures reflected in our 2025 outlook. Margins in the Health & Nutrition business unit were well above target levels on significant sales growth in the nutrition markets.

The reduction in CapEx spend, which contributed to the strong free cash flow generation, was a product of CapEx discipline with ample support behind the strategic expansion projects. Lastly, the covenant net debt to covenant EBITDA came in at 2.1x at year-end 2024.

Net sales 2024

Sales in 2024 were € 1,288.1 million (full year 2023: € 1,264.1 million) driven by volume/mix growth of +5.2% and a pricing impact of -3.0%. The currency impact on sales was slightly negative at -0.7% impacted by depreciation in the Japanese Yen and Brazilian Real.

Full year 2024 compared to full year 2023

Net sales 2024

By business unit in %

By region in %

Functional Ingredients & Solutions

Health & Nutrition

Source: Company data

Raw materials

Sugar accounts for 30% of the total raw material spending. The combined spend of dextrose (corn) and energy represent another 15%, highlighting the significant role these raw materials play in the overall cost structure and procurement strategy.

Raw materials break-down

As % of total raw materials spend

Source: Company data

EBITDA

Full-year Adjusted EBITDA of continued operations on an organic basis increased +23.3% to € 175.0 million driven by strong performance in the Nutrition (omega-3 oil) business, as well as growth in Food and Lactic Acid sales to the PLA JV.

Sales and Adjusted EBITDA (Continued operations)

Sales and Adjusted EBITDA (Continued & Discontinued operations)

Segment information

In 2024, the Functional Ingredients & Solutions and Health & Nutrition business units collectively achieved a +2.2% organic increase in sales. This growth was partially offset by adverse currency effects amounting to -0.7%, and contributed to by a positive effect from temporary service agreements of +0.4%.

Adjusted EBITDA increased to € 175.0 million, resulting in an organic increase of +23.3%.

Functional Ingredients & Solutions

In 2024, Functional Ingredients & Solutions delivered a positive volume/mix impact of +3.3% offset by a pricing impact of -4.9% resulting in a -1.6% organic sales decrease. The pricing impact was the result of input cost relaxation.

In the Food business, volume/mix was positive for the full year, offset by a decrease in pricing including in the two main markets (e.g., bakery and meat). We have seen growth in the product and market adjacencies, like dairy stabilizers, natural antioxidants, and natural food ferments.

Sales in the Biochemicals business in full-year 2024 decreased due to reduced sales to the agrochemicals market on weaker demand due to phasing effects and in the semiconductor market following the ongoing cyclical market downturn in chips for automotive and mobile electronic devices.

Lactic Acid sales to the TotalEnergies Corbion joint venture grew substantially in 2024 driven by strong volume/mix growth.

The Adjusted EBITDA margin for the Functional Ingredients & Solutions business unit in 2024 stood at 8.8%, decreasing compared to the previous year (2023: 9.1%).

Health & Nutrition

Sales in Health & Nutrition increased organically +18.5% to € 290.2 million, driven by strong volume/mix growth of +13.9% and the pricing at +4.6%.

In 2024, positive volume/mix growth was achieved in the Nutrition and Pharma businesses, with Biomedical Polymers being flat. Growth from pricing was also strongly positive in the Nutrition business. The Biomedical Polymers business maintains its growth targets to 2028 as sales growth is expected to resume mainly driven by business development in drug delivery in 2025.

The Health & Nutrition business unit achieved remarkable progress in terms of sales and EBITDA growth over 2024 and the few years prior. Omega-3 oils from algal fermentation have continued their strong growth momentum as a sustainable alternative to fish oil in the aquaculture industry.

Adjusted EBITDA in Health & Nutrition was € 86.7 million, an EBITDA improvement of € 39.6 million versus last year, resulting in an Adjusted EBITDA margin level of 29.9%. This was mainly the result of multi-year agreements with major partners in the Nutrition business in early 2024.

TotalEnergies Corbion joint venture

Sales in the TotalEnergies Corbion joint venture increased +13.2% organically. The Adjusted EBITDA margin for the full year 2024 of 8.7% is lower than the previous year, attributable mainly to negative pricing dynamics. 

Depreciation, amortization, and impairment

Depreciation, amortization, and impairment of fixed assets before Adjustments from continuing operations amounted to € 84.3 million compared to € 77.5 million in 2023.

Operating profit

Adjusted Operating profit increased by € 28.0 million to € 90.7 million in 2024 (2023: € 62.7 million). Operating profit from continuing operations remained stable at € 77.3 million.

Adjustments

Adjustments in 2024, a total of € 10.5 million of adjustments were recorded at the “Result after taxes” line, consisting of the following components:

1. Gain of € 0.8 million related to fair value adjustment on the contingent consideration payable related to the Algae acquisition.

2. Loss due to restructuring program of € 9.4 million.

3. Loss of € 2.8 million related to start-up inefficiencies at the new lactic acid facility in Thailand.

4. Loss of € 0.9 million related to an impairment on assets no longer in use.

5. Loss of € 0.6 million related to legal cases.

6. Loss of € 0.5 million related to planned settlement of defined benefit.

7. Tax effects on the above of € -2.9 million.

Financial income and charges 

Net financial charges decreased by € 17.2 million to € 11.2 million (2023: € 28.4 million), mainly as the result of lower interest charges and exchange-rate effects.

Taxes

The tax charge on continuing basis in 2024 amounted to € 16.6 million compared to a charge of € 2.3 million in 2023, resulting in an effective tax rate of approximately 26.6% (2023: 5.1%).

Statement of financial position

Capital employed decreased, compared to year-end 2023, by € 128.5 million to € 1,236.3 million.

The movements in 2024 were as follows:

Major capital expenditure projects are related to the completion of the new 125kt lactic acid plant in Thailand and investments in algae fermentation.

Operating working capital decreased by € 33.7 million including € 5.9 million related to positive currency effects and € 32.2 million related to the divestment of the Emulsifiers business.

Shareholders' equity increased by € 136.3 million to € 772.5 million.

The movements in 2024 were as follows:

At year-end 2024, the ratio between balance sheet total and equity was 1:0.5 (2023 year-end: 1:0.4).

Cash flow/Financing

“Cash flow from operating activities” increased by € 18.7 million to € 184.1 million compared to 2023 (€ 165.4 million). This is the balance of the lower “operational cash flow before movements in working capital and provisions” of € 3.5 million, a positive impact of the “movement in working capital and provisions” of € 24.3 million, and higher taxes and interest paid of € 2.1 million.

The cash flow required for investment activities (excluding the net proceeds from the Emulsifiers business transaction) decreased by € 61.0 million to € 85.8 million compared to 2023 (€ 146.8 million). Capital expenditure (€ 84.2 million) was the main source of cash outflow.

The net proceeds from the Emulsifiers business transaction, net of transaction costs and tax paid was € 251.8 million.

The net debt position at the end of 2024 was € 459.9 million, a decrease of € 255.4 million compared to year-end 2023 (€ 715.3 million), mainly the result of debt repayment after the proceeds from the Emulsifiers business divestment, the positive cash flow from operating activities and decreased working capital positions, partly compensated by the dividend payment, the share buy-back and capital expenditures. The covenant net debt (excluding the subordinated loan) was € 360.2 million at the end of 2024 (2023: € 615.7 million). The covenant net debt to covenant EBITDA ratio improved from 3.1x at the end of 2023 to 2.1x at the end of 2024. The interest cover was 11.3x in 2024 (7.9x in 2023). We continue to stay well within the limits of our financing covenants.

Reservation and dividend policy

Corbion’s reservation policy is aimed at creating and retaining sufficient financial capacity and flexibility to realize our strategic objectives while maintaining healthy balance sheet ratios. Corbion intends to add the profit (or charge the loss) to the company reserves after deduction of the proposed dividend on ordinary shares. Events potentially impacting our financing requirements such as acquisitions, divestments, reorganizations, or other strategic considerations can lead to adjustments in the reservation amount and the reservation policy. As regards Corbion’s dividend policy, the amount and structure of dividend on ordinary shares that the company will pay to its shareholders depend on the financial results of the company, the market environment, the outlook, and other relevant factors. The dividend policy has the ambition to annually pay out a stable to gradually increasing absolute cash dividend amount per share (progressive regular dividend policy), subject to an annual review of the outlook of the covenant net debt/covenant EBITDA ratio development. This review will be based on multiple criteria such as major investments, timing of M&A, or divestment initiatives.

Dividend proposal

A proposal to increase the dividend per share amount and distribute a regular dividend in cash of € 0.64 per ordinary share (2023: € 0.61), and increase of +5% versus the prior year, will be submitted for approval to the annual General Meeting of Shareholders, to be held on 14 May 2025.