Corbion's bakery sales grow due to price/mix effect

by Jeff Gelski
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Tjerk De Ruiter, Corbion
Tjerk de Ruiter, c.e.o. of Corbion, said third-quarter sales grew 5% in the company's Food segment.

AMSTERDAM, THE NETHERLANDS – A positive price/mix effect, rather than volume increases, grew bakery sales for Corbion nv in the third quarter. Higher egg and folic acid prices, as well as a continuing shift to higher value-added enzyme blends in the North American bakery industry, were part of the price/mix effect, the company said when reporting results Oct. 30.

Bakery is part of the Food segment of Corbion’s Biobased Ingredients. In the third quarter the Food segment reported EBITDA of €34.3 million ($37.8 million), up from €27.3 million ($30.1 million) in the previous year’s third quarter. Net sales of €179.6 million ($198 million) in the Food segment compared to €148.7 million ($163.9 million) in the previous year’s third quarter. The sales growth of 5% came through a positive price/mix development of 4.3% and volume growth of 0.7%.

Also within the Food segment, meat sales grew slightly in North America and expanded rapidly in Latin America and Asia, areas where Corbion’s customer base is growing. Sales decreased slightly in beverages, confectionery and dairy because of competitive market conditions.

Companywide, Amsterdam-based Corbion nv in the third quarter reported EBITDA of €40.9 million, up from €28.4 million in the previous year’s third quarter, and net sales of €235.6 million, up from €198.6 million. EBITDA excluding one-off items was €39.8 million, up from €27.6 million. The company received a one-off benefit because of insurance proceeds connected to an explosion at a Corbion facility in Grandview, Mo., earlier this year.

“Q3 was yet another strong quarter for Corbion from both a sales and profit perspective,” said Tjerk de Ruiter, chief executive officer. “This performance was driven by continuous product mix improvements, currencies and the successful implementation of our Streamline productivity improvement program. Organic growth was particularly strong in Food, whereas Biochemicals showed a small decline. EBITDA progress was visible in both segments.”

Within Biobased Ingredients, which includes Food and Biochemicals, Corbion reported EBITDA of €39.7 million in the third quarter, up from €31.3 million in the previous year’s third quarter. Net sales were €229.4 million, up from €195.3 million.

Biobased Innovations reported EBITDA of €100,000 in the third quarter, which compared to a loss before interest, taxes, depreciation and amortization of €3.7 million in the previous year’s third quarter. Net sales in Biobased Innovations were €6.2 million in the third quarter, up from €3.3 million.

Through the fiscal year’s first nine months, Corbion nv companywide had EBITDA of €118 million, up from €77.5 million in the same time period of the previous year, and net sales of €687.9 million, up from €569.6 million. EBITDA excluding one-off items was €117.1 million, up from €79.5 million.
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