- 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.