Corbion NV

Welcome to Corbian's Q3 2026 results conference call. Following the opening remarks, there'll be an opportunity for questions. Please note that this call will be recorded. I would now like to hand over to Mr. Alex Sokolowski, head of investor relations. Please go ahead, sir.

Thank you, operator. Good morning and welcome to Corbian's third quarter 2026 interim management statement conference call. This morning we published our Q3 2026 results. The press release and presentation can be found on our website at www.corbion.com, Investor Relations, Financial Publications. 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. I'm Alex Sokolowski, head of IR, and with me on the call are Olivier Rigaud, chief executive officer, and Peter Kazius, chief financial officer. Now, I would like to hand the call over to Olivier.

Thank you, Alex, and good morning, everyone, and thank you for joining us today. We delivered a strong third quarter with volume-led growth across both segments and a significant step up in profitability. Health and nutrition was the key driver. As anticipated, nutrition volumes accelerated strongly in the second half, while functional ingredients and solutions continued to grow. Importantly, profitability improved materially. Our cost reduction actions and operational efficiencies are delivering, and we also benefited from lower sugar costs and improved omega-3 DHA pricing. As a result, year-to-date adjusted EBD returned to organic growth. So now let me take you through the key developments, starting with functional ingredients and solutions, where we continue to deliver sales growth, both year-to-date and in Q3. Natural preservation remains healthy, with good growth in vinegars, in natural mold inhibitors and enzyme blends. High protein bakery applications also contributed nicely while meat remained softer. Biochemicals maintained a strong momentum we saw in the first half and higher volume to our PLH on venture supported strong lactic acid cells. This growth came with a mixed effect as these activities carry relatively lower margins. But importantly, Q3 showed a clear improvement in profitability, driven by lower sugar costs, our cost actions, and better operational efficiency. Now let's move to health and nutrition, where we saw the strong recovery we anticipated. Nutrition volume accelerated sharply as the phasing from the first half came through. Higher official prices supported improved omega-3 DHA pricing, while new customer wins contributed positively to the mix. Together, this drove a strong rebound in Q3 profitability. Biomaterials also continue to grow year to date, supported by both volume mix and pricing. The recent FDA approval of Veltruza announced by Medincelle and Teva is an important milestone and further supports our bright 2030 growth ambition for that business. Pharma was softer. Sales declined both year-to-date and in Q3, reflecting lower volume mix and destocking at key customers in North America and Latin. Let me now turn to PLA. We've decided to discontinue the process to sell our interest in the total energies Corbion GV. The process generated interest, but the proposal received did not adequately reflect the value, the strategic positioning, and the long-term potential of the business. So we are clear on the way forward. We believe the best route to maximize shoulder value is to continue to develop the business under the current ownership structure. The GV delivers strong sales growth here to date and in Q3, with some improvement in quarterly profitability. Our priority now is straightforward. Continue to improve operational and financial performance and capture the opportunity as PLA market dynamics strengthen. Looking ahead, our strong Q3 performance and our Q4 order book gives us really confidence in the full year. We expect continued growth in functional ingredients and solutions. In health and nutrition, we expect mid-single-digit organic sales growth in Q4. And as expected, this is a moderation from the 20% growth delivered in Q3, as the benefit from the phasing of first-half nutrition volumes normalizes. We expect health and nutrition margins to remain broadly in line with Q3. In functional ingredients and solutions, margins will be seasonally lower, with additional cost pressure in Q4 coming from the Middle East conflict, primarily the sulfuric acid costs. Cash generation remains strong. Our nine-month free cash flow supports our full-year target, and we remain disciplined on capital expenditure and cash conversion. Our full-year outlook is unchanged. Organic sales growth of 3% to 6%, an adjusted margin above 16%, and free cash flow between 85 and 90 million euros. So let me leave you now with three messages. First, growth is solid and increasingly volume-driven. Second, profitability improved significantly in Q3 as volume recovered and our cost actions delivered. And third, strong cash generation and good Q4 visibility gave us confidence in delivering our full year commitment. So we are focused on maintaining this momentum, strengthening margin, and executing our bright 2030 strategy. With that, let's move to your questions. Alex, back to you.