Corbion Sees Impressive Growth and Proposes Dividend Boost

Corbion Announces Strong Performance for 2024

Corbion, the renowned sustainable ingredients company based in Amsterdam, has recently published its financial results for the year ending December 31, 2024. With an unwavering commitment to preservation through scientific innovation, the company reports notable growth in both sales and adjusted EBITDA.

Key Highlights from 2024

In this fiscal year, Corbion achieved organic sales growth of 2.2%. The fourth quarter reported a growth margin of 1.3%, showing consistent performance against challenging market conditions. The company's volume/mix experienced a significant uptick of 5.2% overall, with Q4 contributing a solid 2.9%. However, pricing was a slight setback, dropping 3.0% for the year, contrasted by a lesser decline of 1.6% in the last quarter.

Financial Accomplishments

For 2024, Corbion's continued operations recorded sales reaching € 1,288.1 million, a commendable increase from € 1,264.1 million in 2023. Adjusted EBITDA soared to € 175 million, marking a 24.8% increase over last year's € 140.2 million. The operating profit also surged to € 77.3 million, holding steady from the previous year.

Corbion showcased an impressive free cash flow of € 350.1 million, highlighted by € 98.3 million once divestment proceeds were set aside. Furthermore, the cash flow from operational activities evolved positively, gaining € 18.7 million to reach € 184.1 million.

Looking Ahead: 2025 Projections

The future looks promising for Corbion as the company outlines its outlook for 2025. Expectations indicate that the volume/mix growth may range from 2% to 6%, while adjusted EBITDA organic growth should exceed 25%. A strong emphasis on maintaining a robust free cash flow exceeding € 85 million is also anticipated.

Strategic Developments and Market Positioning

Corbion has fortified its market presence significantly in the past year. Notable milestones include the initiation of operations at its world-leading lactic acid plant in Thailand and the successful divestiture of its emulsifiers business. These strategic decisions underscore Corbion's commitment to optimizing its operational efficiency and focusing on high-margin product lines.

Commentary from Leadership

CEO Olivier Rigaud commented on the company's trajectory: "I am pleased to share that in 2024, Corbion successfully met its upgraded targets for sales and Adjusted EBITDA, while significantly surpassing our free cash flow target. The organic sales growth and double-digit increases in both Adjusted EBITDA and Adjusted Operating Profit bolster our confident path ahead." He also highlighted that the proposal for a cash dividend increase of 5% to € 0.64 per ordinary share reflects the company's robust performance and future potential.

Segment Performance and Challenges

In the Functional Ingredients & Solutions segment, while sales witnessed a slight decline, there was notable volume/mix growth in the food business, particularly in dairy stabilizers and natural antioxidants. Conversely, the Health & Nutrition segment flourished, showing strong double-digit growth spurred by robust demand in aquaculture and pet-food markets. A significant contributor to this growth was the focus on high-margin products.

Frequently Asked Questions

What were Corbion's total sales for 2024?

Corbion achieved total sales of € 1,288.1 million for the year 2024.

How much did Corbion's Adjusted EBITDA increase?

Adjusted EBITDA for Corbion increased by 24.8% to € 175 million compared to the previous year.

What is the proposed dividend increase per share?

The company proposes a dividend increase of 5%, bringing it to € 0.64 per ordinary share.

What is Corbion's outlook for 2025?

The outlook for 2025 includes volume/mix growth between 2% and 6% and adjusted EBITDA organic growth expected to exceed 25%.

What strategic milestones did Corbion achieve in 2024?

Key milestones included launching a new lactic acid plant in Thailand and completing the divestiture of the emulsifiers business.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

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