Nutrition segment negatively affected by lower vitamin E prices
Royal DSM’s sales for the second quarter of 2015 were EUR1,965 million (US$2,143 million), a 12 percent increase compared with the same quarter last year, due to 3 percent higher volumes, 2 percent lower prices, 10 percent positive foreign exchange effects, and 1 percent acquisition effects.
DSM delivered a 6 percent higher EBITDA of EUR279 million compared with EUR264 million in the second quarter of 2014. In the second quarter, operating working capital remained stable versus the prior quarter.
DSM delivered improved results driven by overall higher volumes and positive foreign exchange effects as well as margin expansion in Performance Materials. While Nutrition continues to be negatively impacted by lower vitamin E prices, volumes developed well in animal and human nutrition. In animal nutrition, volume growth would have been higher without the impact of a supply interruption of a key raw material due to a fire at the port of Santos, Brazil. Performance Materials had a strong quarter due to higher volumes, cost savings programs implemented over the recent years, positive foreign exchange effects and the temporary effect of significantly improved margins as a result of lower input costs.
Commenting on the results, Feike Sijbesma, CEO/chairman of the DSM managing board, said: “I am pleased to report good progress in Q2 with a solid volume growth in Nutrition and a step-up in Performance Materials. The priority of improving our operational performance is starting to deliver results.”