CSM NV (CSM), the Dutch biotechnology company that sold its bakery supplies division to focus on biobased products, posted a 5 percent increase in second-quarter organic sales helped by demand for its food ingredients.
Earnings before interest, taxes, depreciation and amortization excluding one-time costs rose to 27.2 million euros ($36.2 million) from 25.6 million euros a year earlier, the Diemen, Netherlands-based company said today in a statement. Net sales increased 2.4 percent to 190 million euros.
“Both the Biobased Food Ingredients and the Biochemicals segments realized solid organic sales growth,” Chief Executive Officer Gerard Hoetmer said. “Volumes showed growth in the second quarter after a challenging first quarter.”
In June, CSM renamed itself Corbion and reorganised the company to drive expansion in the biobased industry where fermentation techniques are used to derive lactic acids to improve the shelf life and taste of foods and produce non-oil based plastics. CSM, which continues to trade under that name on the Amsterdam stock exchange, has formed links with companies including Cargill Inc. and BASF SE (BAS) to gain a broader platform for its lactic-acid technology.
CSM rose as much as 1.85 percent before trading little changed at 17.585 euros at 11 a.m. in Amsterdam. The stock has risen 12.6 percent this year, giving the company a market value of 1.32 billion euros.
CSM agreed in March to sell its bakery supplies unit to Rhone Capital LLC for 1.05 billion euros including debt amid declining volume as consumers switch from buying bread at artisan bakeries in favor of shopping at supermarkets.
“With the divestment of the Bakery Supplies businesses completed we can now fully focus on the development of our biobased products activities,” the company said. “Overall, the developments in the first half-year are encouraging, and the stable to declining rate material prices will support our margins.”
The company repported a second-quarter Ebitda margin before one-time costs of 14.3 percent compared with 13.8 percent a year earlier.
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