Higher prices more than offset a decline in volume/mix at Corbion in the six-month period ended June 30. Adjusted EBITDA of €97 million ($107 million) was up 8% from €90 million in the first half of 2022. Sales of €738 million ($811 million) were up 7% from €687 million in the same time of the previous year. Organic sales increased 7%.
In the company’s Sustainable Food Solutions business unit, sales increased to €386 million from €366 million in the first half of the previous year. Organic sales increased 4.7% An 11% positive effect from pricing more than offset a 6% negative effect from volume/mix.
Within Sustainable Food Solutions, sales in both functional systems and preservation increased by mid-single-digit percentages. Consumer demand has softened in preservation, according to Amsterdam-based Corbion.
“The US processed meat market, one of the largest end-markets for our preservation solutions, showed a decline of 5% in H1,” the company said.
In the Algae Ingredients business unit, sales more than doubled to €50 million from €24 million. Volume/mix increased 69%. Corbion plans to unveil a 2025-30 strategic roadmap for Algae Ingredients later this year.
“The Algae Ingredients business delivered excellent volume/mix growth in aquaculture and created an extended portfolio and pipeline for petfood and human nutrition markets,” said Olivier Rigaud, chief executive officer, when financial results were given Aug. 10.
In the Lactic Acid & Specialties business unit, organic sales increased 2.2% as a 12% positive effect from pricing more than compensated for a 9% negative effect from volume/mix. The unit had sales of €207 million, which compared to €202 million in the previous year’s first half.
“We anticipate a positive free cash flow in H2 2023 following relaxation in input costs, operational efficiencies, further working capital optimization and our capital discipline,” Mr. Rigaud said. “Furthermore, the divestment process of our emulsifiers business is continuing to progress, and we anticipate concluding a transaction within this year.”