DAVY VIEW

Corbion’s Q2 update points to continued underlying momentum in the PLA and lactic acid business as additional capacity in Thailand comes into the fold. Growth in Food Solutions was more lacklustre in Q2 as destocking in Bakery impacted volumes. The constructive commentary on Corbion’s key innovation projects will be welcomed, particularly in relation to AlgaPrime which comprises the majority of the losses – a lower fixed cost base and more competitive pricing should boost performance in the second half. We anticipate modest upward revisions to our FY EBITDA forecast as Incubator losses lessen.