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1. Company Snapshot

1.a. Company Description

Corbion N.V. provides lactic acid and lactic acid derivatives, emulsifiers, functional enzyme blends, minerals, vitamins, and algae ingredients worldwide.The company offers ingredient solutions made from renewable resources for the food, home and personal care, pharmaceutical, animal nutrition, medical device, and bioplastics markets.It markets its products through a network of sales offices and distributors.


The company was formerly known as CSM N.V. and changed its name to Corbion N.V. in October 2013.Corbion N.V. was founded in 1919 and is headquartered in Amsterdam, the Netherlands.

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1.b. Last Insights on CRBN

Corbion N.V.'s recent performance was negatively driven by a 11% year-over-year decline in revenue to €1.29 billion, amidst market challenges and pricing headwinds. Despite reporting strong EBITDA growth and cash flow, the company's adjusted EBITDA of €175.0 million and operating profit of €77.3 million fell short of expectations. Additionally, the proposed 5% dividend increase, while positive, may not be enough to offset the decline in revenue and profitability. The company's estimated intrinsic value of €19.04, as per 2-stage free cash flow to equity, also suggests a disconnect between the current market value and the company's underlying fundamentals.

1.c. Company Highlights

2. Corbion Delivers Strong Financial Performance in 2024 with Promising Outlook

Corbion reported a robust financial performance in 2024, meeting its upgraded sales and adjusted EBITDA targets while significantly surpassing its free cash flow goals. The company achieved organic sales growth of 2.2%, driven by a 5.2% volume-mix increase, partially offset by a 3% pricing decline. Adjusted EBITDA grew by 23.3%, and free cash flow reached an impressive €98.3 million, underscoring the company's operational efficiency and disciplined capital management. As Peter Kazius, CFO, noted, "Our strong EBITDA and disciplined CapEx drove our free cash flow to €98.3 million."

Publication Date: Mar -01

📋 Highlights
  • Strong Financial Performance:: Corbion met its upgraded sales and adjusted EBITDA targets for 2024, with organic sales growth of 2.2% and adjusted EBITDA growth of 23.3%. Free cash flow significantly exceeded expectations, reaching €98.3 million.
  • Segment Growth Highlights:: The Health & Nutrition segment delivered strong organic sales growth of 18.5%, while Functional Ingredients & Solutions saw positive volume-mix growth of 3.3%, though partially offset by pricing declines.
  • Free Cash Flow Strength:: Free cash flow reached €98.3 million in 2024, driven by strong EBITDA performance and disciplined capital expenditure management. The company targets over €85 million in free cash flow for 2025.
  • 2025 Guidance:: Corbion set ambitious targets for 2025, including organic sales growth of 2-6%, adjusted EBITDA growth exceeding 25%, and a covenant net debt to EBITDA ratio of approximately 1.6x.
  • ESG and Strategic Progress:: Corbion highlighted its ESG efforts, with 74% of revenue contributing to UN Sustainable Development Goals (SDGs) and 92% product coverage by Life Cycle Assessments (LCAs). The company remains confident in its strategic direction and ability to deliver strong performance in 2025.

Segment Performance and Strategic Initiatives

The Health & Nutrition segment was a standout performer, with organic sales growth of 18.5%, contributing significantly to the company's overall growth. This segment also achieved an impressive EBITDA margin of nearly 30%, driven by strong demand in both human and pet nutrition. However, the Functional Ingredients & Solutions segment faced challenges, with volume-mix growth of 3.3% being partially offset by pricing headwinds. Despite these challenges, the segment is expected to see margin improvements in 2025 due to planned pricing rounds and operational efficiencies.

2025 Outlook and Strategic Targets

Looking ahead, Corbion has set ambitious targets for 2025, including organic sales growth of 2-6% and adjusted EBITDA growth exceeding 25%. The company also aims to maintain its strong free cash flow generation, with a target of over €85 million. Additionally, Corbion announced a 5% dividend increase to €64 per share, reflecting its confidence in financial health and commitment to shareholder value. The company's ESG efforts remain a key focus, with 74% of revenue contributing to Sustainable Development Goals (SDGs) and 92% of products covered by Life Cycle Assessments (LCAs).

Valuation and Financial Health

Overall, Corbion's strong financial performance in 2024, combined with its promising outlook for 2025, positions the company well for continued success. The focus on strategic growth initiatives, operational efficiency, and shareholder value enhancement makes Corbion an attractive investment proposition in its sector.

3. NewsRoom

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Corbion (ENXTAM:CRBN): Assessing Valuation After Recent Share Price Momentum

Nov -29

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ADM, DSM, and Corbion Lead the Fragmented $1.81 Billion Algae Omega-3 Ingredients Market, 2025-2030: Partnerships, Joint Ventures, and Acquisitions Will Remain a Key Competitive Strategy

Nov -28

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Corbion unveils BRIGHT 2030 strategy to lead in sustainable specialty food-ingredients; outlining its strategic path and medium-term financial targets

Nov -20

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Corbion reports the end of its share buyback program to cover commitments under its long-term employee incentive plan

Nov -12

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Corbion signs a new debt issuance for USD 100 million in the US Private Placement market

Nov -07

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Lactic Acid Market Size | Companies Analysis 2025- 2034

Nov -03

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Green Chemicals Market Size | Companies Analysis 2025- 2034

Oct -31

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Corbion announces strong YTD EBITDA growth, and EBITDA margin improvement of +240 bps; full-year outlook maintained

Oct -29

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.28%)

6. Segments

Non-core

Expected Growth: 0%

Corbion N.V.'s non-core segment shows 0% growth, driven by stagnant demand, intense competition, and lack of innovation in the segment. Additionally, the company's focus on core business and divestment of non-core assets have also contributed to the stagnant growth.

Sustainable Food Solutions

Expected Growth: 2%

Corbion N.V.'s Sustainable Food Solutions segment growth is driven by increasing consumer demand for natural and healthy food products, rising awareness of environmental sustainability, and growing need for food waste reduction. Additionally, advancements in biotechnology and fermentation processes enable the development of innovative, plant-based ingredients, further fueling growth.

Lactic Acid & Specialties

Expected Growth: 3%

Corbion N.V.'s Lactic Acid & Specialties segment growth is driven by increasing demand for biodegradable plastics, growing adoption of natural preservatives in food, and rising use of lactic acid in pharmaceutical applications, supported by the company's strong R&D capabilities and strategic partnerships.

Algae Ingredients

Expected Growth: 5%

Corbion N.V.'s Algae Ingredients segment growth is driven by increasing demand for sustainable and vegan food products, rising awareness of omega-3 fatty acids' health benefits, and growing adoption in pharmaceutical and cosmetic applications. Additionally, expanding distribution channels, strategic partnerships, and investments in R&D are contributing to the segment's 5% growth.

7. Detailed Products

Lactic Acid

A natural preservative used in food, pharmaceutical, and cosmetic industries to extend shelf life and improve product quality.

Lactides

A biodegradable polymer used in the production of bioplastics, 3D printing, and pharmaceutical applications.

Algae-based Omega-3

A sustainable and vegan-friendly source of omega-3 fatty acids used in food supplements and pharmaceutical applications.

Bakery Fats

Specialty fats used in the production of bakery products such as bread, pastry, and cakes.

Emulsifiers

Specialty ingredients used to improve the texture and stability of food products such as margarine, chocolate, and ice cream.

Biodegradable Polymers

Sustainable and biodegradable polymers used in the production of packaging materials, disposable cutlery, and 3D printing.

8. Corbion N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Corbion N.V. operates in the biobased food ingredients and biochemicals markets, which have relatively few substitutes. However, the company faces some threat from substitutes in the form of traditional chemical-based products.

Bargaining Power Of Customers

Corbion N.V. has a diverse customer base across various industries, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Corbion N.V. relies on a network of suppliers for raw materials, including agricultural commodities and chemicals. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The biobased food ingredients and biochemicals markets have high barriers to entry, including significant capital expenditures, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The biobased food ingredients and biochemicals markets are highly competitive, with several established players competing for market share. Corbion N.V. faces intense rivalry from companies such as DuPont, Cargill, and Ingredion.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.54%
Debt Cost 4.62%
Equity Weight 46.46%
Equity Cost 8.58%
WACC 6.46%
Leverage 115.23%

11. Quality Control: Corbion N.V. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Uzin Utz

A-Score: 5.9/10

Value: 6.9

Growth: 5.0

Quality: 6.5

Yield: 4.4

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Sniezka

A-Score: 5.9/10

Value: 5.9

Growth: 3.9

Quality: 6.3

Yield: 6.9

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Borregaard

A-Score: 5.1/10

Value: 3.1

Growth: 5.7

Quality: 6.5

Yield: 3.1

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Corbion

A-Score: 5.0/10

Value: 6.7

Growth: 7.4

Quality: 4.3

Yield: 4.4

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
EPC

A-Score: 4.6/10

Value: 4.4

Growth: 7.4

Quality: 3.2

Yield: 0.6

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Orion Engineered Carbons

A-Score: 2.5/10

Value: 7.6

Growth: 3.2

Quality: 1.7

Yield: 1.2

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.67$

Current Price

18.67$

Potential

-0.00%

Expected Cash-Flows