HEERLEN, The Netherlands, Nov. 1, 2022 /PRNewswire/ --
Highlights
1,2
Continuing Operations:
- Health, Nutrition & Bioscience delivered a solid performance in the first nine months with sales up 19% and organic sales growth of 10%
- Animal Nutrition & Health: +8% organic sales growth
- Health, Nutrition & Care: +10% organic sales growth
- Food & Beverage: +12% organic sales growth
- Adjusted EBITDA up +6% reflecting continuing inflationary environment
- Full Year outlook 2022 lowered: Adjusted EBITDA expected to increase by low single digits
Key figures – Continuing Operations
in € million |
Jan-Sept |
Jan-Sept |
% Change |
Volume |
Price/mix |
FX |
Other |
Sales |
6,297 |
5,341 |
18 % |
2 % |
7 % |
7 % |
2 % |
HNB |
6,245 |
5,272 |
19 % |
2 % |
8 % |
7 % |
2 % |
ANH |
2,814 |
2,430 |
16 % |
-1 % |
9 % |
8 % |
0 % |
HNC |
2,234 |
1,892 |
18 % |
4 % |
6 % |
8 % |
0 % |
F&B |
1,158 |
917 |
26 % |
4 % |
8 % |
5 % |
9 % |
Adjusted EBITDA |
1,102 |
1,040 |
6 % |
||||
HNB |
1,174 |
1,110 |
|||||
Corporate |
-72 |
-70 |
|||||
Adjusted EBITDA margin |
17.5 % |
19.5 % |
|||||
HNB |
18.8 % |
21.1 % |
Co-CEOs statement
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs, commented: "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 macro-economic environment.
Given the positive structural long-term drivers of our business, underpinned by progress on our strong pipeline of innovations, we are confident in the mid-term financial targets for DSM.
Since their announcements back in May, good progress has been made towards closing the divestment of DSM Engineering Materials to Advent International and LANXESS, and our forthcoming merger with Firmenich. 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."
Q3 Highlights
Continuing Operations:
- Health, Nutrition & Bioscience delivered a solid quarter with sales up 20%, organic sales growth of 9% and Adjusted EBITDA up +3%
- Animal Nutrition & Health: +6% organic sales growth
- Health, Nutrition & Care: +11% organic sales growth
- Food & Beverage: +14% organic sales growth
Key figures – Continuing Operations
in € million |
Q3 2022 |
Q3 2021 |
% Change |
Volume |
Price/mix |
FX |
Other |
Sales |
2,182 |
1,824 |
20 % |
2 % |
7 % |
9 % |
2 % |
HNB |
2,169 |
1,801 |
20 % |
2 % |
7 % |
9 % |
2 % |
ANH |
975 |
849 |
15 % |
0 % |
6 % |
9 % |
0 % |
HNC |
770 |
632 |
22 % |
3 % |
8 % |
11 % |
0 % |
F&B |
405 |
308 |
31 % |
3 % |
11 % |
8 % |
9 % |
Adjusted EBITDA |
356 |
347 |
3 % |
||||
HNB |
380 |
369 |
|||||
Corporate |
-24 |
-22 |
|||||
Adjusted EBITDA margin |
16.3 % |
19.0 % |
|||||
HNB |
17.5 % |
20.5 % |
Q3 saw strong organic sales growth, with ongoing solid end-use demand in an increasingly inflationary environment.
- Animal Nutrition & Health volumes were in-line with a strong prior year that had delivered 14% volume growth. Pricing increased +6% in Q3, in comparison to +11% in H1, reflecting lower pass-through costs and lower vitamin prices
- Health, Nutrition & Care delivered strong growth with pricing +8% and solid sales volumes +3% on strong performances in Personal Care & Aroma, Early Life Nutrition and Biomedical
- Food & Beverage also delivered solid growth with volumes up 3% and strong pricing of 11% with Dairy, Baking, Beverages and Hydrocolloids performing particularly well
Health Nutrition & Bioscience Adjusted EBITDA was up 3%, with an 8% contribution from acquisitions and foreign exchange effects. The Adjusted EBITDA margin for these businesses was 17.5%, compared to 20.5% in the prior year period, with a 150bps dilutive mathematical effect from price increases and foreign exchange effects.
Outlook 2022
DSM has lowered its full year 2022 outlook, and now expects its Adjusted EBITDA for Continuing Operations (Health, Nutrition & Bioscience and Corporate Activities) to increase by a low-single digits.
1 Continuing Operations reflects the results of DSM's Health, Nutrition & Bioscience and Corporate Activities as of 1 January 2022. DSM's Materials businesses have been reclassified to Discontinued Operations effective as of 1 January 2022 |
2 Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects results from usual operations. Organic sales growth is the total impact of volume and price/mix. |
Note for editors: For the full text of the press release please click here.
Financial calendar
16 February 2023 Publication of the full year results of 2022
Additional information
Today DSM will hold a webcast for investors and analysts at 14:00 CET. Details on how to access this call can be found on the DSM website, www.dsm.com.
Contact information
DSM Media Relations Gareth Mead tel. +31 (0) 45 5782420 email media.contacts@dsm.com |
DSM Investor Relations Dave Huizing tel. +31 (0) 45 5782864 |
DSM
Royal DSM is a global, purpose-led company in Health, Nutrition & Bioscience, applying science to improve the health of people, animals and the planet. DSM's purpose is to create brighter lives for all. DSM's products and solutions address some of the world's biggest challenges while simultaneously creating economic, environmental and societal value for all its stakeholders – customers, employees, shareholders, and society at large. The company was founded in 1902 and is listed on Euronext Amsterdam. More information can be found at www.dsm.com.
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Forward Looking Statements
This press release may contain forward-looking statements with respect to DSM's future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. DSM has no obligation to update the statements contained in this press release, unless required by law. The English language version of the press release is leading.
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