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

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