Milling & Baking News - August 24, 2021 - 14

TUES | 08 24 202 1
Corbion plans to increase prices as
input costs soar in several areas
AMSTERDAM, THE NETHERLANDS
- Corbion NV is implementing price
increases and altering its outlook for the
fiscal year due to rising input costs. The
price increases are needed because broadbased
inflation is happening across all the
company's input factors, said Eddy van
Rhede van der Kloot, chief financial officer.
" So this is about key raw materials, " he
said in an Aug. 10 earnings call to discuss
first-half financial results. " It is about
helping raw materials, and it is about
packaging. It is about energy. It is about
the freight tariffs. "
Corbion's input costs could increase by
€80 million to €90 million ($94 million to
$105 million) over a two-year period, he
said. About €50 million to €55 million will
hit the company's core business.
" So if you look at the size of what that does
in terms of the size of the business, you're
typically looking at about 5.5% to 6% price
increases that we would require if you want
to offset that amount of (increased input
costs), " Mr. van Rhede van der Kloot said.
The remaining €30 million to €35 million
will hit the non-core business, where
the main component is soybean oil.
Corbion has hedged inputs like sugar,
corn, soybean oil and energy into 2022, but
hedging accounts for about one-third of
input costs, Mr. van Rhede van der Kloot
said. The other two-thirds
are contracted annually,
which means margin recovery
improvements will not
become visible until 2022. Corbion
lowered its outlook for adjustable EBITDA
margins for its core activities to a range of
13% to 15% in 2021, which was down from a
previous range of over 15%. Corbion expects
adjusted EBITDA margin for core activities
to recover in 2022 and be above 15%.
Amsterdam-based Corbion reported
adjusted EBITDA of €77.1 million ($90.4
million) in the first half, which was down 8%
from €83.8 million in the same time of the
previous year, but organic growth was 4.7%.
Net sales grew 4.8% to €515.6 million ($604.3
million) from €492.2 million while organic
IBIE opens registration for 2021
in-person education program
WASHINGTON - The International
Baking Industry Expo has opened registration
for IBIEducate 2021, to be held
Oct. 26-28 in Kansas City. This in-person
event marks the first time IBIE makes
its education programming available
beyond its traditional triennial schedule.
IBIEducate is a joint endeavor between the
American Bakers Association (ABA) and
BEMA with co-located workshops hosted
by the Retail Bakers of America (RBA).
" We are pleased to be offering the bestin-class
professional development that
IBIEducate is so well known for in a new
format that can be delivered to audiences
eager for the high-quality content on a
more regular basis, " said Kerwin Brown,
president and chief executive officer of
BEMA. " IBIEducate is such an important
14
MILLING & BAKING NEWS
component of the triennial event, and with
the industry showing an increasing value
in and desire for education, we are confident
that IBIEducate 2021 will provide. "
Attendees from wholesale and retail
bakeries as well as supplier companies
may access more than 20 education sessions
that will be offered at IBIEducate.
These sessions will focus on both teaching
new skills and honing existing ones.
" Participants at IBIEducate 2021 will
step away from their computer screens
and their work facilities and step into
interactive learning that can only be done
in-person, " said Robb MacKie, president
and CEO of the ABA. " The ROI on this type
of training, especially after more than
a year and a half of being apart, will be
invaluable for baking employees. "
IBIEducate 2021 is scheduled to be held in October
at the Westin Kansas City at Crown Center.
and in-person networking opportunities.
Attendees also will have access to downloadable
materials.
IBIEducate 2021 will be held at the
Westin Kansas City at Crown Center.
Early bird registration closes Oct. 4. MBN
bakingbusiness.com
sales growth was over 15%. Corbion raised
its full-year outlook for organic net sales
growth to a range of 12% to 15%, which was
up from a previous range of 7% to 10%.
Within Corbion's Sustainable Food Solutions
business unit, first-half sales grew
6% to €284.1 million. Organic sales growth
was 15%. First-half sales growth in natural
preservation was the highest in
Corbion's history, driven by
continued interest in replacing
fossil-based ingredients
and synthetic ingredients,
an improved pipeline, and
higher win rates.
In the Lactic Acid and
Specialties business unit,
first-half sales of €151 million marked a 7%
increase from the same time of the previous
year. Organic sales growth was 13%.
In the Incubator business unit, first-half
sales more than doubled to €11.8 million
as the aquaculture sector became more
receptive to using sustainable feed ingredients
like Corbion's AlgaPrime DHA. In
non-core business, first-half sales fell 12%
to €68.7 million although organic sales
grew 10% behind a strong performance in
emulsifiers. The frozen dough business
was divested on Jan. 11. MBN
Topics will include food safety and sanitation,
emerging baking trends, as well as
hands-on technique training. The in-person
event also will include facility tours
WESTIN CROWN CENTER
http://www.bakingbusiness.com
Milling & Baking News - August 24, 2021

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