Company update: DSM solid Q3 results
The nutrition division of chemical company DSM has had a strong third quarter. Profit (EBITDA) of DSM Nutrition grew to €202 million, giving a boost to the company as a whole in difficult times.
This meant a year-on-year growth of €24 million for the nutrition division, producing various feed additives for the pig and poultry industry. The nutrition division’s revenue grew from €868 million to €945 million.
DSM wrote in a press release: “Animal Nutrition & Health achieved modest volume growth despite the drought in the US which resulted in higher grain prices. This subsequently led to lower feed and meat production. Prices were slightly down.”
Total DSM profit (EBITDA) from continuing operations in the third quarter amounted to €270 million, which is lower than 2011’s €339 million. Other divisions in the company achieved small profits or losses.
Commenting on the results, Feike Sijbesma, CEO/chairman of the DSM managing board, said: “Despite a challenging global trading environment DSM continued to generate good results mainly driven by our Nutrition cluster. We continued to make good progress towards our strategic goals with the purchase of Tortuga and Cargill’s cultures and enzymes business. We have now invested €2.3 billion in acquisitions since the end of 2010, of which €1.9 billion in Nutrition. With these acquisitions we are building new platforms and are strengthening our downstream network. This will create significant future value for the company whilst further increasing the resilience of DSM’s earnings profile.”
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