BASF Nutrition & Health Sales Decline, Group Income up 18 Percent in Q1
29 Apr 2016 --- BASF has reported an 18 percent lift in net income in the first quarter, but sales across its Nutrition & Health division fell five percent due to disposal costs.
The world’s biggest chemicals company by sales and nutrition provider has reported that net sales were up from €1.2 billion ($1.37 billion) billion to €1.4 billion ($1.6 billion) in Q1.
But sales were down 29 percent to €14.2 billion ($16.2 billion)
Sales across its Nutrition & Health division declined five percent to €488 million ($551 million) year-on-year but the division is optimistic about earnings going forward following a restructure which has helped reduce fixed costs.
Across Nutrition & Health, sales declined slightly, mainly due to the disposal of part of its pharmaceutical ingredients and services business.
BASF was able to raise volumes in all business areas, which more than compensated for lower prices and negative currency effects across Nutrition & Health.
The lower prices were mainly a consequence of falling raw material costs for aroma chemicals.
Restructuring measures enabled BASF to reduce fixed costs and, combined with increased volumes, helped increase earnings.
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