November 13, 2012
DSM Nutrition's has had a strong third quarter with its profit (EBITDA) grew to EUR202 million (US$256 million), giving a boost to the company as a whole in difficult times.
This meant an on-year growth of EUR24 million (US$30.4 million) for the nutrition division, producing various feed additives for the pig and poultry industry. The nutrition division's revenue grew from EUR868 million (US$1.1 billion) to EUR945 million (US$1.2 billion).
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 EUR270 million (US$342 million), which is lower than 2011's EUR339 million (US$430 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 EUR2.3 billion (US$3 billion) in acquisitions since the end of 2010, of which EUR1.9 billion (US$2.4 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."
