News Stocks

Corbion, an attractive aquaculture company

Corbion brings in aquaculture-focused exec for Southeast Asia (Undercurrent news)

  • Biochemicals company Corbion has produced algae-based aquafeed AlgaPrime DHA oil for use in salmon aquaculture.
  • The oil is said to promote “responsible omega-3 enhancement” which is suitable for any aquaculture species as well as pet food.
  • Aquaculture and shrimp farming is likely to be a focus for the company in the future, particularly as they expand globally.

Analysis & Comments

  • 2018 was an important year in Corbion’s transition from a chemicals play to a concept stock. The company commissioned its polylactic acid plant (PLA) in Thailand and took over sole ownership of the algae platform.
  • FY 2018 results on 6 March were, however, uneventful, with guidance broadly in line with expectations.
  • The key takeaway is that the PLA story is gaining traction, particularly in Europe, and the loss from this segment was a touch lower than expected.
  • The sales from its innovation platform were up sharply (c85% organic sales growth). It was also pleasing that the much-maligned bakery segment is now on track to deliver the low-end of company guidance of 1-3%. We remain buyers – recovery in bakery and declining losses in innovation should drive EBITDA to 16% in 2019.

Corbion’s Share Price

Related posts

Plant Fitness Is Definitely Not Judging

rollandthomas

Is Recycling the New Eldorado for Oil, Gas and Utilities?

Mr. Crypto Lemon

Boeing’s Halo Effect

rollandthomas
No comments yet