NETHERLANDS – Dutch nutrition giant, DSM, has delivered a solid performance in the first nine months of 2022, with sales up 20% and organic sales growth of 9% despite the energy and raw material costs weighing down productivity.
The group, which is revamping its portfolio to focus more on the food ingredients and health products markets said its Food & Beverage segment delivered solid growth with volumes up 3% and strong pricing of 11% with Dairy, Baking, Beverages, and Hydrocolloids performing particularly well.
In the Q3 results, Animal Nutrition & Health has volumes that are in line with a strong prior year that had delivered 14% volume growth.
Pricing increased by 6% in Q3, in comparison to 11% in H1, reflecting lower pass-through costs and lower vitamin prices.
Health, Nutrition & Care also delivered vigorous growth with pricing of 8% and solid sales volumes of 3% on convincing performances in Personal Care & Aroma, Early Life Nutrition, and Biomedical.
The Adjusted EBITDA of the Health, Nutrition & Bioscience company was up 3%, with an 8% contribution from acquisitions and foreign exchange effects, while the Adjusted EBITDA margin for its businesses was 17.5%, compared to 20.5% in the prior year.
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs, said: “All our businesses delivered good organic growth during the third quarter. We continue to counter rising energy and raw material prices, which accelerated especially in Europe, albeit with a time lag. Market demand remained resilient across our three businesses in a challenging macroeconomic environment.”
Given the positive structural long-term drivers of our business, underpinned by progress on a strong pipeline of innovations, we are confident in the mid-term financial targets for DSM.”
DSM, which in May struck deals to take over Swiss flavor and fragrance maker Firmenich and sell its engineering materials division, said it had made good progress towards closing both deals, which are expected as early as the first quarter of 2023.
These significant steps will lead to the establishment of DSM-Firmenich, a purpose-led leading creation and innovation partner in nutrition, beauty, and well-being.
To expand and grow its profitability, DSM has completed the acquisition of Prodap, a leading animal nutrition, and technology company in Brazil, which was first announced on 7 June 2022.
By harnessing the power of Prodap’s digital solutions, DSM intends to take another step forward in its Precision & Personalization journey.
The company plans to strengthen and further develop its digital solutions to reach more markets globally, enabling smarter nutritional decision-making thanks to artificial intelligence and other tools.
Recently, the company unveiled its first portfolio of all-in-one cultures for fermented milk products developed using a new AI-powered platform.
According to the company, this is “just the start of using AI to solve the F&B industry’s biggest challenges.”
For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel.
