Corbion executing against strategy

by Eric Schroeder
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Corbion bakery, baked nutrition bars with Nutrivan
Corbion's bakery sales increased during fiscal 2015.

AMSTERDAM, THE NETHERLANDS — Bakery sales at Corbion n.v. increased during fiscal 2015 as a small recovery in volumes was supported by price increases following an increase in raw material prices for such products as egg powder and folic acid.

Bakery is part of the Food segment of Corbion’s Biobased Ingredients. In the fiscal year ended Dec. 31, 2015, EBITDA in the Food segment totaled €135.1 million ($146.6 million), up 39% from €97.2 million in fiscal 2014. Net sales of €687.8 million ($746.3 million) in the Food segment compared with €573.5 million in the year-ago period.

Corbion said the consolidation of its powder blending plants in Kansas and New Jersey — the final stage of its “Streamline” program — have not been completed yet.

“The consolidated production volumes in the New Jersey plant have not been at a satisfactory level yet, requiring us to postpone the closure of the Kansas plant until later into 2016,” the company said. “However, in line with guidance, we do not expect this to impact the realization of the €20 million Streamline savings on a run-rate basis before year-end.”

Also within the Food segment, meat sales increased significantly in 2015. Corbion said performance in North America, which accounts for more than half of meat sales, was better than initially expected during the year, as fewer customers switched to low-cost-in-use solutions. Elsewhere, growth in emerging markets, most notably Latin America, was strong.

Corbion meat products
Corbion's meat sales increased significantly in 2015 as well.

Corbion said sales in beverages, confectionery and dairy fell during fiscal 2015 as a result of difficult market conditions and the adverse impact of an explosion at a Corbion facility in Grandview, Mo., early in 2015.

Companywide, Amsterdam-based Corbion n.v. in fiscal 2015 posted EBITDA of €156.2 million, up from €94.8 million in fiscal 2014, and net sales of €918.3 million, up from €770.1 million. EBITDA excluding one-off items was €150.3 million, up from €109.6 million. The company received a one-off benefit because of insurance proceeds connected to the explosion in Grandview.

Tjerk De Ruiter, Corbion
Tjerk de Ruiter, c.e.o. of Corbion

“I am very pleased with the progress we have made in 2015 in executing our strategy,” said Tjerk de Ruiter, chief executive officer. “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.”

Within Biobased Ingredients, which includes Food and Biochemicals, Corbion posted EBITDA of €160.9 million in fiscal 2015, up from €109 million in fiscal 2014. Net sales were €895.9 million, up 18% from €759.9 million.

Biobased Innovations had a loss before interest, taxes, depreciation and amortization of €4.7 million in fiscal 2015, which compared with a loss of €14.2 million in fiscal 2014. Net sales in Biobased Innovations were €22.4 million in fiscal 2015, up from €10.2 million.
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