DSM reports 2014 financial Q2 results
Royal DSM today reported second quarter 2014 EBITDA from continuing operations of €293 million compared to €332 million in Q2 2013, and €272 million in Q1 2014. Nutrition showed improvement compared to the last two quarters.
Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: "DSM delivered improved results versus the first quarter, despite persistent currency headwinds. Performance Materials saw continued positive momentum in a number of end-markets, whereas Polymer Intermediates has seen weaker business conditions for caprolactam.
Market conditions in Nutrition have shown some improvement with good Animal Nutrition performance in Q2, while Human Nutrition still operates in a low growth macro environment for some end-markets due to ongoing pressure on consumer spending. In this environment, the resilience of our integrated value chain is demonstrated by robust margins, highlighting the quality of our Nutrition business. In addition we are undertaking initiatives in the US to reinforce the attractiveness of our dietary supplements end-user categories.
We continue to focus on efficiencies to protect profitability and improve cash flow in the current environment. Despite the weakness in caprolactam, we continue to anticipate to deliver improving financial results in the coming quarters."
Sales in Q2 declined by 3% compared to Q2 2013, as organic growth and the contribution of new consolidations was offset by 5% weaker currencies. Organic sales growth was 1% versus Q2 2013, with volume growth (2%) partly offset by lower prices (-1%).
Animal Nutrition and Health net sales were €519 million in Q2. Organic sales growth in Q2 was 5% driven by good global volume growth. Overall, the price/mix effect was flat. Market conditions in animal feed continued to improve in Q2 as premix businesses showed strong performance. Vitamin E volumes and prices were lower versus the same period last year.
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