DSM reported a trading update for the first nine months of 2022, with organic growth across all businesses for the third quarter.
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 macroeconomic 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.”
Highlights of the report include:
- Health, Nutrition & Bioscience delivered a solid quarter with sales up 20%, organic sales growth of 9% and Adjusted EBITDA up +3%
- 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 the continuing inflationary environment
- Full Year outlook 2022 lowered: Adjusted EBITDA expected to increase by low single digits
- 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.