Corbion drops as margin, costs guidance overshadows H1 beats

Corbion NV

10/08/2022 09:11

** Shares in Corbion  CORB.AS  fall over 7% as margin and
costs guidance overshadow overall better-than-expected H1
results
    ** "Shares had been rallying in the 30 days prior to
results. The sell-off is driven in my view by concerns around
weak cash flow and leverage, as well as profit taking", says
Berenberg analyst Sebastian Bray
    ** The Dutch biochemical company posts net sales at 687.4
million euros  ($702.04 million)  while its EBITDA jumps 16.6%
at 89.9 million euros - a better-than-expected performance, ING
says  urn:newsml:reuters.com:*:nASM000MQY
    ** It also raises its 2022 guidance organic sales growth to
20-25% (vs 15-20% previously) but now expects EBITDA margin at
the lower end of the 12-15% range for its core activities, while
seeing an additional input cost increase of 150 million euros in
2022
    ** The guidance adjustment on EBITDA reflects "the higher
dilutive impact from higher price increases given additional
input cost inflation", KBC Securities says
    ** ING notes that the implications of the revised guidance
are that consensus for core EBITDA will likely come down by
about 3-6%
    ** The brokerage also points to the leverage rising
significantly during H1 - Corbion's covenant net debt/covenant
EBITDA ratio increased to 3.3x
    ** Shares are on track for their worst day in over a year
    
    


($1 = 0.9791 euros)

 (Reporting by Augustin Turpin)
 ((augustin.turpin@thomsonreuters.com))