Corbion NV

Good morning and welcome to Corbian's third quarter 2025 results conference call. This morning we published our Q3 2025 interim management statement press release and presentation. These can be found on our website at corbian.com investor relations financial publications. With me on the call today are Olivier Rigaud, chief executive officer, and Peter Kazius, chief financial officer. Before we begin, please note that today's discussion will include forward-looking statements based on current expectations and assumptions. These statements involve risks and uncertainties that may cause actual results to differ materially from those expressed. Factors beyond our control, including market conditions, economic changes, and regulatory actions can impact outcomes. Corbian does not undertake any obligation to update statements made in this call or contained in today's press release. and presentation. For more details on our assumptions and estimates, please refer to our annual reports. Now, I would like to hand the call over to Olivier Rigaud. Olivier?

Thanks, Alex, and good morning, everyone, and thank you for joining our Q3 2025 earnings call. We are pleased to report solid results for the first nine months of the year, which underscore the fundamental strength and resilience of our businesses. Our third quarter performance was in line with expectations, especially considering the strong comparable basis for Q3 2024 across both functional ingredient and solution and health and nutrition. We delivered meaningful margin expansion with adjusted EBITDA margins improving by 240 basis points year-to-date and 110 basis points in the quarter. These gains reflect the successful execution of our cost reduction initiatives, lower input prices for key materials, and our continued focus on operational efficiency. In our functional ingredients and solution segment, we maintain strong sales momentum in both year-to-date and quarterly results. As anticipated, pricing was slightly lower due to the passing through pricing mechanism in lactic acid to the PLH adventure. Although pricing declined due to reduced input cost, the decline was limited as our teams continued to capture the value of our differentiated products in the market. Turning now into the health and nutrition division, we achieved excellent adjusted EBITDA growth despite a temporary decline in volume mix in the third quarter. This decline is mainly due to the exceptionally strong Q3 2024, particularly in the nutrition sales to agriculture. Sales in the segment in the third quarter continued to the momentum from the first half of the year. So our pharma business also delivered positive sales growth driven by increased volume mix both year-to-date and in Q3. Looking ahead, we expect strong volume mix growth in health and nutrition in Q4 to more than offset the Q3 dip. Based on the robust year-to-date performance published today, we are reaffirming our full year 2025 guidance and narrowing the range for the full-year volume mix growth target. This concludes our prepared remarks. Peter and I are happy to take your questions. So, Alex, let's start the Q&A now.

Thanks. So, participants, if you're interested in asking questions this morning, please press star 11 on your telephones to be moved to the queue. So, our first question this morning comes from Wim Hosta at KBC.