Royal DSM has reported a broadly flat sales performance for 4Q12 and for the full year. Operating profit, however, fell by 28% in the quarter and 27% for the year, with gains in nutrition more than offset by reductions in the company’s polymer intermediates business. Net profit was down 75% for the quarter, and 65% for the year.
The company described its performance as “solid”, and said that it was positioned for stromg EBITDA growth.
“In the context of challenging macro-economic conditions, DSM delivered growth across all clusters in 2012, excluding caprolactam,” said Feike Sijbesma, CEO/chairman of the DSM Managing Board. “Nutrition now represents more than 70% of total EBITDA and has become a high value, global business with attractive growth prospects across the full value chain.”
The significant strategic progress we made during 2012 through our value creating acquisitions and the profit improvement initiatives we have taken leave us well positioned to achieve our long term objectives. In 2013 we will focus on the operational performance and integration of the acquisitions we completed in 2012 with special attention to capturing synergies. We expect strong EBITDA growth in 2013, moving towards €1.4 billion. The Board’s proposal to increase the dividend for the third consecutive year is testament to the stronger DSM we have built in recent years, with more stable growth and profitability going forward.”
Nutrition results in Q4 increased by 6% versus Q4 2011 and full year results increased by 8%, as a result of contributions from acquisitions and continued organic growth.
Fourth quarter organic sales growth was 1% compared to Q4 2011 with volume growth (4%) partially offset by lower prices (-3%). Reported sales were positively impacted by favourable exchange rates (1%) and the acquisition of Ocean Nutrition Canada.
Human Nutrition & Health sales were up due to slightly higher prices and good volume growth. Premixes and Nutritional Lipids recorded double digit growth. Ocean Nutrition Canada showed strong sales momentum with the first synergy sales being realised. The Q4 results of Ocean Nutrition Canada were in line with expectations with sales of €36 million and EBITDA of €11 million.
DSM Food Specialties continued its growth especially in enzymes and savoury ingredients.
EBITDA for the fourth quarter was €204 million, a 6% increase compared to the same quarter of 2011, mainly driven by the contribution of Ocean Nutrition Canada. The EBITDA margin was stable at 22.1%. Full year organic growth was 2% driven by volumes and stable prices. EBITDA was €793 million and increased by 8% as a result of continued growth in advanced forms, premixes and nutritional lipids and contributions from acquisitions.
