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Company update: DSM reports growth in Q1 2015 results

Royal DSM has recently published its results for Q1 2015. The company reported sales of €1.886 million which is an 11% increase compared to Q1 2014. Net sales for Animal Health and Nutrition increased by 23% since Q1 last year. This is a short summary of the full report.

Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: "DSM delivered higher results in Q1 2015 compared to prior year, driven by higher volumes in both Nutrition and Performance Materials. Nutrition delivered mixed results with good volume growth in animal nutrition, partly offset by low prices in vitamin E and weak performance in human nutrition. Performance Materials had another strong quarter with higher volumes and margins. The mix of foreign currencies had an overall positive impact on both clusters.

Animal Nutrition and Health results

Net sales were €574 million in Q1, a 23% increase versus the €467million in Q1 2014. Organic sales growth in Q1 was 14%, entirely driven by higher volumes. This development reflects the continued positive growth momentum throughout 2014 versus a slow start in Q1 2014.

Premixes showed strong growth and Tortuga continued to develop well and delivered a strong quarter. Vitamin E prices were significantly lower compared to Q1 2014. This negative price effect of more than €20 million was compensated by higher prices for other ingredients. However, as a substantial part of these other ingredients are in-sourced for DSM's premix activities and as such these increased prices only have a limited EBITDA effect.

DSM aims to deliver an EBITDA in 2015 ahead of 2014, the increase mainly driven by positive foreign exchange effects" added Sijbesma.

View the full Q1 report here.


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