DSM release Q4 2014 results
DSM has recently released its Q4 2014 results, its animal health and nutrition division were up 7% with strong performances in all active ingredients. This is a short summary of the full report
Animal Nutrition & Health net sales were €572 million in Q4 2014, up €60 million compared to Q4 2013. Sales volumes showed 7% growth with strong performance in almost all active ingredients and premix businesses.
Tortug continued to develop well and had a strong quarter. Prices were up 3% due to higher prices for several vitamins and other active ingredients, partly offset by lower vitamin E prices.
Organic growth for the Nutrition cluster was 2% with 3% higher volumes driven by healthy growth in Animal Nutrition & Health, partly offset by weakness in Human Nutrition & Health. Prices were down 1% versus 2 013, particularly due to lower vitamin E prices.
EBITDA of the cluster declined 7% in 2014, despite strong volume growth in Animal Nutrition & Health. The decline was due to the impact of negative currency effects, lower volumes in Human Nutrition & Health and lower vitamin E prices.
Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: “DSM generated 3% organic growth and delivered a relatively solid EBITDA with good cash flow from operating activities, amongst others due to improved operating working capital management. This was achieved despite the fact that 2014 was not an easy year for DSM with substantial negative exchange rate effects and tough market conditions in Nutrition and caprolactam. DSM is already taking steps to address the challenging external environment. We will continue to focus on operational performance and this will be complemented by accelerated actions to improve efficiencies and reduce costs, specifically in Nutrition and across all functions in the company.”
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