Feike Sijbesma, CEO/chairman of the DSM managing board, said: “2011 was another strong year for DSM despite the challenges of the global economy, adverse currency movements and high raw material costs.”
The Nutrition cluster, which includes the animal nutrition business, did not suffer from adverse market conditions. The division achieved a strong profit and revenue growth in 2011 and more growth is expected in 2012. Sales grew 12% from €3.0 billion in 2010 to €3.4 billion last year.
DSM has been particularly busy in the acquisition market in 2011 – and briefly summed up its additions. Some were related to the animal nutrition business, e.g.:
In Russia, DSM opened the first feed-premix plant in Russia in a joint venture with Tatenergo JSC (Republic of Tatarstan).
In India, DSM opened its first animal nutrition & health premix plant, located in Ambernath, Mumbai.
In Romania DSM completed the acquisition of the premix unit of Fatrom Furajeri Additivi, the country’s leading premix manufacturer. It allows DSM to expand its global network of premix facilities and offers improved access to the growing Romanian livestock feed market.
In the fourth quarter of 2011, total DSM reported a net profit of €85 million – substantially lower than the €149 million in 2010’s fourth quarter. This was related to restructuring costs as well as court cases.
Sijbesma commented on the total picture of figures, “We made significant steps in the first year of implementing our growth strategy. This included the acquisition of Martek, the formation of the joint venture with Sinochem, the completion of non-core divestments, progress in sustainability-related innovations and expansion into high growth economies, which now account for 39% of sales. At the start of 2012 we announced an exciting joint venture with POET, to make advanced biofuels a reality on a commercial scale.
“We are conscious that risks to the macro-economic global outlook remain, and that weakness in Europe and some of our end markets, especially building and construction, persists. However, we believe that our balanced, relatively resilient portfolio in health, nutrition and materials, our broad geographic spread with a significant presence in high growth economies, together with our strong balance sheet, leave us well placed to achieve our ambitious 2013 targets.”
DSM said to be ‘cautiously optimistic’ for 2012 and to be on track to achieve its targets for 2013.