Core Insights - Corbion reported solid results for the first nine months of 2025, with organic sales growth of +1.2% despite a decline in Q3 [2][5] - Adjusted EBITDA increased by +22.9% year-to-date, reflecting improved operational efficiency and cost-reduction initiatives [2][4] - The company maintains its full-year 2025 guidance, expecting volume/mix growth of +3-5% in Q4 [5] Financial Performance - Total sales for the first nine months of 2025 reached €957.2 million, a decrease of -1.6% compared to the same period in 2024 [2] - Adjusted EBITDA for the first nine months was €156.3 million, up +15.2% year-over-year, with an adjusted EBITDA margin increase of +240 basis points [2][4] - Operating profit for the first nine months was €91.4 million, reflecting an organic increase of +59.6% [2][4] Segment Performance - The Functional Ingredients & Solutions segment maintained sales momentum, although pricing was slightly down due to a pass-through pricing mechanism [3] - In Health & Nutrition, adjusted EBITDA showed excellent growth despite a decline in volume/mix in Q3, attributed to high comparables from Q3 2024 [4] - Positive sales growth was noted in the Pharma business, with expectations for strong volume/mix growth in Health & Nutrition in Q4 [4]

Financial Data and Key Metrics Changes - Cash and cash equivalents as of June 30, 2025, were $36.5 million, with an expectation that existing cash will fund operations into Q2 2026 [22] - Revenue for Q2 was $933,000, up from $838,000 in the same period last year, indicating increased activity in partner-funded programs [22] - Research and development expenses decreased to $12.2 million from $13 million year-over-year, reflecting cost reduction initiatives [23] - Selling, general, and administrative expenses were $6.6 million, down from $9.3 million in the prior year [24] - Net loss for the quarter was $26.6 million, compared to $28.5 million in the same period last year [24] Business Line Data and Key Metrics Changes - The RIOS herbicide tolerance traits HT1 and HT3 are projected to generate over $200 million in potential annual royalty revenue, with launches targeted for Latin America in 2027 and the U.S. in 2028 [5][9] - The biofragrance program is on track for nominal revenues beginning later this year, with commercial expansion expected to ramp up in 2026 [12][13] Market Data and Key Metrics Changes - The company is witnessing a favorable global regulatory environment that is enhancing market penetration opportunities [6][14] - The EU's regulatory discussions are progressing, with expectations for resolution within six months, which could significantly benefit the company [14][45] Company Strategy and Development Direction - The company is focused on advancing its rice herbicide tolerance traits and sustainable ingredients programs, with a disciplined approach to capital allocation [6][28] - The strategic operational focus aims to reduce annual cash usage to approximately $30 million by 2026, extending the cash runway while capturing significant revenue opportunities [7][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the strategy that will deliver long-term value, emphasizing the importance of gene editing in agricultural innovation [27][28] - The company anticipates initial revenues from rice traits and biofragrance products starting in 2026, with meaningful expansion thereafter [28][29] Other Important Information - The company has signed agreements with multiple customers in Latin America, enhancing its market presence and customer engagement [10][11] - The successful completion of the FDA review for altered lignin alfalfa paves the way for U.S. commercialization, although it is not expected to be a significant revenue driver compared to priority programs [20] Q&A Session Summary Question: About the germplasm transfer and field trials - Management confirmed that the germplasm transfer involves a new customer who will use the HT3 trait in their field trials [34] Question: Initial revenue expectations for biofragrance - Management clarified that nominal revenues are expected this year, with full commercial runs starting in 2026 [36] Question: EU regulatory discussions and next steps - Management indicated that the EU is working on important amendments and expects resolution within six months, paving the way for commercialization [45][70] Question: Cash burn and expense reduction timeline - Management confirmed that they are on track to reduce operating expenses to $30 million by 2026, with a disciplined approach to capital allocation [56] Question: Scale-up of sustainable ingredients - Management noted that while biofragrance revenues will ramp up quickly, sustainable ingredients may take a couple of years to see significant commercial interaction [58] Question: Differentiation in gene editing technology - Management highlighted the unique single-cell editing system that allows for complex traits without needing a null segregate, setting them apart from competitors [72][73]

Core Insights - Corbion reported its half-year 2025 results, highlighting a focus on sustainable ingredients and scientific preservation [1] Financial Performance - Organic sales growth for H1 2025 was +2.9%, with Q2 showing a decline of -1.6% [2] - Volume/mix growth was +3.3% in H1 2025, while Q2 experienced a decrease of -1.3% [2] - Price changes reflected a slight decrease of -0.4% in H1 2025, with Q2 at -0.3% [2] - Total sales reached €645.6 million in H1 2025, compared to €637.1 million in H1 2024, marking a growth of +1.3% [2] - Adjusted EBITDA for H1 2025 was €106.6 million, up from €86.1 million in H1 2024, representing a growth of +23.8% [2] - Adjusted EBITDA organic growth was +29.3% [2] - Adjusted EBITDA margins improved by +300 basis points to 16.5% [2] - Operating profit increased to €63.5 million in H1 2025, a significant rise of +89.0% compared to €33.6 million in H1 2024 [2] - Cash flow from operating activities was €45.7 million, with Free Cash Flow at €12.1 million [2] Business Segments - Volume/mix growth was observed in both business segments [2] Outlook - The company maintained its FY 2025 outlook [2]