Cibi e Bevande
Corbion Strategy Update of 'Advance 2025'
During its Capital Markets Day for analysts and investors in Amsterdam today, Corbion
management will present a n update of the
' Advance 2025 ' strategy progress and introduce updated targets for the 2023-2025 period.
Through o ur purpose ' Preserve what matters ', sustainability continues to be at the forefront
in all our decision-making .
Key highlights of the event will include:
We are well on track in delivering the Advance 2025 strategy, navigating through a highly volatile business climate. We raised our organic sales growth rate substantially, grew our Adjusted EBITDA, invested in our organization and production capacity, exited from all non-core manage-for-exit activities, achieved break-even EBITDA in algae-based omega-3, and raised our carbon footprint reduction target in line with 1.5 degrees. Today, we mark the beginning of the second phase of our Advance 2025 strategy.
After achieving the break-even EBITDA level in June 2022 as anticipated, we believe now is the time to carve out Algae Ingredients from the Incubator into a separate business unit. This expresses our confidence in the growth and profitability potential of this business line. Initially, this business unit will consist of our algae-based omega-3.
We are raising our organic net sales growth guidance for the 2023-2025 period from 4-7% to
5-8% p.a. We are switching from a margin target to an organic Adjusted EBITDA growth target (15-20% annually), as we believe this is a better measure of our performance, given the highly volatile input cost dynamics. We are aiming for a € 250 million Adjusted EBITDA for our core activities by 2025 .
We expect to improve our funding ratio to 2.9-3.2x by end of 2022, below 2.9x in 2023, and between 1.5x and 2.5x from 2024 onwards, irrespective of divestments or acquisitions. Within this funding framework we will continue to invest significantly to support our profitable growth opportunities in all of our business units.
We have initiated the process of divesting our non-core emulsifier business enabling us to fully focus on profitably growing our core business. In 2020 we categorized the emulsifier business as non-core: 'manage-for-value'. The emulsifier business has delivered a very strong performance over the past few years, and we have become the market leader in the US emulsifier market.
TotalEnergies and Corbion are committed to growing the PLA business. We are in discussion to explore several operational and financial models regarding the future lactic acid requirements for the production of PLA in Grandpuits.
Financial guidance 2023-2025
Financial targets 202 3 -2025 (for core activities)
Underlying ambitions
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