Corbion full year 2021 results

Corbion reported net sales of € 1,070.8 million in 2021. Organic net sales growth was 14.7% for the year. Adjusted EBITDA in 2021 decreased organically by 7.6% to € 135.8 million. The company proposes to distribute a regular cash dividend of € 0.56 per share.

Olivier Rigaud, CEO, commented: “2021 was an extraordinary year for Corbion. Our strong organic growth in our core activities of 15% – mostly driven by volume growth – was achieved under challenging circumstances. Our colleagues have done a tremendous job navigating these volatile conditions. The Q4 margin was adversely impacted by a temporary production outage in our lactic acid plant in the US. Increasing our sales prices has been one of our key priorities over the past quarters. We have successfully increased prices to fully compensate for the additional input costs. I am happy to see that the higher sales price levels and our continuous drive for operational efficiencies are starting to have a positive effect on our results since the beginning of 2022. Given the continued volatile business environment, we moved to a more flexible contract structure allowing for faster pricing adjustments. We are encouraged by the strong opportunity pipeline and sales growth momentum. We made substantial progress in our sustainability efforts. In 2021 we already surpassed our 2025 GHG emission reduction target. Our strategy, intended to enhance sustainable growth, is clearly materializing, and we remain confident on the delivery of our Advance 2025 targets.”

Key financial highlights FY 2021*:

Total net sales was € 1,070.8 million (FY 2020: € 986.5 million)
Net sales organic growth was 14.7%. Core net sales organic growth: 15.0%
Adjusted EBITDA was € 135.8 million (FY 2020: € 158.8 million; organic decrease: 7.6%)
Adjusted EBITDA margin was 12.7% (FY 2020: 16.1%)
Operating result was € 82.0 million (FY 2020: € 104.1 million)
Free cash flow was € -97.0 million (FY 2020: € 32.1 million)
Covenant net debt/covenant EBITDA at year-end was 2.6x (year-end 2020: 1.7x)

€ million	YTD 2021	YTD 2020	Total growth	Organic growth
Net sales	1,070.8	986.5	8.5%	14.7%
Adjusted EBITDA	135.8	158.8	-14.5%	-7.6%
Adjusted EBITDA margin	12.7%	16.1%
Operating result	82.0	104.1	-21.2%	-12.7%
ROCE	9.6%	12.9%