Corbion (CRBN) H1 2024 earnings summary

Executive summary

• Organic sales in H1 2024 declined 0.7% to €637.1 million, with volume/mix up 3.6% and pricing down 4.3%.

• Adjusted EBITDA from continued operations rose 24.8% to €86.1 million, with margin improving to 13.5%, driven by strong Health & Nutrition performance.

• Free cash flow reached €12.7 million, excluding €323.8 million from divestments; total free cash flow was €336.5 million.

• Divestment of the emulsifiers business in April contributed €323.8 million to free cash flow and resulted in a net gain of €139.9 million after tax.

• Restructuring plan and ramp-up of the new lactic acid plant in Thailand are progressing as planned.

Financial highlights

• H1 2024 sales from continued operations were €637.1 million, down 0.7% year-over-year, with adjusted EBITDA up 24.8% to €86.1 million and margin at 13.5%.

• EBIT from continued operations rose 11.3% to €33.6 million; net profit from continuing operations was €22.7 million.

• Result after tax including discontinued operations was €168.4 million, driven by divestment gains.

• Basic EPS (total operations): €2.87; continuing operations: €0.39.

• Free cash flow improved due to higher EBITDA and reduced capex.

Outlook and guidance

• Full-year 2024 guidance confirmed: volume/mix growth of 2–6%, low single-digit negative pricing, adjusted EBITDA growth expected to exceed 18%, and free cash flow (excluding M&A) above €50 million.

• Covenant net debt/EBITDA targeted at 1.8–2.3x by year-end.

• 2025 outlook unchanged, targeting 15–20% organic EBITDA growth and full absorption of stranded costs.

• Positive business momentum anticipated for H2 2024, with ongoing margin improvement initiatives.