Corbion: Barclays cuts on raw material costs headwinds

Corbion NV

28/05/2021 10:29

** Barclays cuts the Dutch biochemical ingredients maker
Corbion  CORB.AS  to "equal weight" from "overweight", citing
potential for modest negative earnings momentum from raw
material costs
    ** Barclays points to sugar, corn, and vegetable oil spot
prices having risen over 50% on average YTD, adding related
costs represent about 15% of Corbion's net sales
    ** It is also not as optimistic on emulsifiers, where
Corbion's offering is less differentiated
    ** However, "given tight lactic acid supply-demand and the
value added nature of the majority of Corbion's core offering,
we suspect the company will ultimately be able to pass on most
of the pressure here to customers through pricing," the broker
says    
    ** Consequently, it cuts its EBITDA forecast by 3% and 4%
for 2021 and 2022 respectively, slightly below consensus
    ** Corbion shares fall 4.4% to EUR 47.14, heading for their
worst day in almost 3 months

 ((clement.martinot@thomsonreuters.com))