Q1 2011 EBITDA was 6% higher at €325m for the Dutch ingredients giant that gained revenues of €2,290 for the quarter compared to €2,234 in the corresponding quarter in 2011.
Of the EBITDA fall it DSM said, “This can be almost completely attributed to the anticipated drop in Polymer Intermediates, which had record results in 2011.”
It said the nutrition division that includes animal nutrition, “continued its profitable growth.” Sales rose from €798m to €900m.
“In Nutrition, the impact of the substantial strengthening of the Swiss franc in 2011 was mitigated by a €50 million currency hedge gain, a benefit which will not be repeated in 2012. Despite this, DSM anticipates that it will make further progress, with EBITDA expected to be above 2011,” it said.
Pharma performance, “remained weak, although first signs of improvement are visible.”
Emerging markets were praised as compensation for the poor polymers performance. “Net sales in China amounted to USD 456 million (€352m), which is at the same level as Q1 2011. Sales in high growth economies reached a level of 38% of total sales in Q1 2012.”
“In Life Sciences, Nutrition continued to deliver excellent performance despite the currency headwinds, benefiting from the acquisition of Martek and continued organic growth,” said Feike Sijbesma, CEO/Chairman of the DSM Managing Board.
Raisio Q1 results
Finnish supplier Raisio – the owner of the plant stanols-cholesterol lowering brand, Benecol, saw sales rise 11% from €121.7m to €135m for the quarter.
EBIT profits jumped from €6.1m to €6.6m with the company’s brands division that includes Benecol giving, “good profitability”, but its feed proteins business suffered tough market conditions.
That figure was 4.9% of sales compared to 11.1% for the Brands division.
“Good performance of the Brands Division shows that we have chosen the right path,” said CEO Matti Rihko.
“In challenging market conditions and rapidly changing markets, we have been able to improve our results and to develop our operations as the forerunner of the sector.”