Related Searches: Tea Vitamin Nutrients Ingredients paper cup packing

Food & Health Ingredients
Health & Nutrition
Processing & Packaging
Starch & Starch Derivatives

DSM reports solid H1 with group sales up 3 percent

foodingredientsfirst 2019-08-05
Share       

DSM has outlined favorable results in the first half-year of 2019. The Dutch multinational reported group sales up by 3 percent year-on-year and adjusted EBITDA up 12 percent (including 3 percent from IFRS 16). Total net profit for H1 2019 was €401 million, up versus the H1 2018 value of €633 million when correcting the temporary vitamin price effect of €275 million EBITDA, which followed an exceptional supply disruption in the industry. Adjusted Net Operating Free Cash Flow H1 2019 was €257 million, up 14 percent year-on-year.

In the company’s Nutrition segment, organic sales (volume driven) were up by 4 percent, against 10 percent in H1 2018. EBITDA was up 13 percent (including 2 percent from IFRS 16). In Materials, organic sales fell by 6 percent, with adjusted EBITDA flat (including 1 percent from IFRS 16).

DSM’s Animal Nutrition continues to strengthen its global market positions, by developing new specialty solutions, expanding its premix offerings, investing in go-to-market capabilities, and focusing on higher growth segments such as aquaculture. Good progress was made in the first half year on key innovation programs: 

Veramaris, which began commercial production of its algae-based omega-3 fatty acids for aquaculture in its new plant in Blair, Nebraska, US.
“Clean Cow,” a feed ingredient for cows that significantly reduces methane emissions, reached a key milestone, as the registration filing was done in Europe in order to get the product authorized for commercial use.
“I am pleased to report a good performance for the first half-year, achieved against a challenging macroeconomic environment,” says Feike Sijbesma, CEO/Chairman DSM Managing Board. “The Nutrition business saw continued good business conditions and delivered a strong performance, demonstrating the quality of its innovative portfolio of value-added solutions.”

“Materials experienced ongoing soft market conditions in some of its end-markets, especially in China. Through a continued strong performance in the Dyneema and Functional Materials businesses, combined with good margin management, our Materials business demonstrated resilience with stable earnings. DSM continues to be well positioned to deliver on our ambitious Strategy 2021 targets, driven by our commitment to be a purpose led, performance driven science-based company in Nutrition, Health and Sustainable Living. We reiterate our outlook for the full year,” he adds. 

On 1 April 2019, DSM commenced its ordinary share repurchase program of an aggregate market value of €1 billion, with the intention to reduce its issued capital, as first announced in February. This program is in addition to the regular repurchase programs to cover commitments under share-based compensation plans and the stock dividend. As per June 30 DSM has repurchased 2.6 million shares for a total consideration of €265 million; 2 million shares relate to the regular repurchase programs and 0.6 million shares relate to the €1 billion share buy-back program. 

DSM maintains its full year outlook as provided in Q1 2019: the company expects to deliver a full year 2019 high single digit increase in Adjusted EBITDA compared to prior year Underlying Adjusted EBITDA (pretemporary vitamin effect), together with an improvement in Underlying Adjusted Net Operating Free Cash Flow in line with its Strategy 2021 targets. This outlook excludes the impact of IFRS 16.

E-newsletter

Subscribe to our e-newsletter for the latest food ingredients news and trends.

Tags

Recommended Products

32 Heads Mixing Multihead Weigher

32 Heads Mixing Multihead Weigher

POTASSIUM PYROPHOSPHATE

POTASSIUM PYROPHOSPHATE

d-alpha tocopherol(1000iu-1400iu)

d-alpha tocopherol(1000iu-1400iu)

SODIUM ACETATE

SODIUM ACETATE

Top

SJGLE B2B Website : 中文版 | ChineseCustomer Service: 86-400 610 1188-3 ( Mon-Fri 9: 00-18: 00 BJT)

About Us|Contact Us|Privacy Policy|Intellectual Property Statement

Copyright 2006-2023 Shanghai Sinoexpo Informa Markets International Exhibition Co Ltd (All Rights Reserved). ICP 05034851-121