During its Capital Markets Day for analysts and investors in
In food,
In our lactic acid business, we aim to capitalize on our market and technology leadership. To further strengthen this leadership position in an attractive growth market, we have decided to build a new lactic acid plant at the existing
In our Incubator, where we develop early stage initiatives, we plan to bring omega-3 DHA to profitability in 2022, while we stay committed to investing in initiatives with a longer time horizon.
Some 17% of our total sales will be classified as non-core. For several non-core activities such as our frozen dough business and our FDCA initiative, we will look for exit scenarios. For others, such as our emulsifiers business, we will manage for value. By thus bringing more focus to the portfolio we believe we can accelerate growth of the company.
At
Our business and reporting structure will have three business units from now on:
Sustainable Food Solutions: Supported by an industry that is rapidly moving towards clean label/natural food solutions we will leverage our strengths in preservation. Sustainable Food Solutions will consist of three segments: Preservation, Functional systems, and Single Ingredients. In the Preservation segment, we intend to expand our (natural) preservation solutions from meat into other markets. In the Functional systems segment, we will focus on natural/clean label solutions in bakery and other markets. Both segments could be supported by bolt-on M&A. Emulsifiers will have a declining strategic fit going forward and will be managed for value. Other non-core activities such as co-packing blending, and frozen dough will be exited.
Lactic Acid & Specialties: We will capitalize on our global product leadership in lactic acid and lactic acid derivatives.
Incubator: We will develop larger, early-stage investments in the Incubator. Our three main product categories are: Algae-based Omega-3, starting with fish feed applications, algae proteins (in cooperation with Nestlé), and our new co-polymer platform. This platform is a lactic acid-based controlled-release co-polymer technology, expanding on our (medical) polymer expertise.
We will continue to invest >4% of sales in R&D to support our growth. In the coming years R&D resources will be intensified in Sustainable Food Solutions and Lactic Acid & Specialties. Next to the Omega-3 initiative, annual EBITDA investments for other initiatives in the Incubator are expected to be in the range of 0.5% to 1.5% of core net sales.
Financial guidance 2020-2025
Financial targets 2020-2025 (for core activities)
- Annual organic net sales growth 4-7%
- EBITDA margin >17% from 2025 onwards (2019: 15.1%)
Underlying ambitions
- Organic net sales growth Sustainable Food Solutions ~3%
- Organic net sales growth Lactic Acid & Specialties ~7%
- Algae-based Omega-3 DHA business EBITDA break-even in 2022
- EBITDA investments of other Incubator initiatives: up to ~0.5-1.5% of
Corbion core sales - Capex: Recurring capex of € 60-70 million per annum. Additional average capex in 2020-2022: € 55 million p.a. for new lactic acid plant in
Thailand - Net Debt/EBITDA: Target is 2.0x over the cycle. Estimated to peak at ~2.5x during construction period of new lactic acid plant (2020-2023)
- Dividend per share: progressive dividend @ 0.56/share (to be annually reviewed; subject to market outlook, financial position, additional large investments, M&A, and divestments)
Financial guidance 2020 (for core activities)
- Organic net sales growth in 4-7% range
- EBITDA margin is expected to be stable vs FY19 at ~15%
Attachment
- 20200309 Corbion PR CMD2020 final ENG
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