CSM Half Year Earnings Down Despite Higher Sales

EBITA excluding one-off costs amounted to €41.4 million, an increase of 14% compared with the second quarter of 2011. EBITA for the first half-year amounted to €73.7 million, a decline of 8.1% compared with the same period in 2011.

8 Aug 2012 --- CSM delivered higher sales and EBITA in the second quarter of 2012 both supported by currency translation gains. However, EBITA for the first half-year amounted to €73.7 million, a decline of 8.1% compared with the same period in 2011.

EBITA excluding one-off costs amounted to €41.4 million, an increase of 14% compared with the second quarter of 2011. Improving margins and reducing costs remains a key focus for CSM. The company said that “although the economic environment remains challenging, the trend of our volumes sold improved throughout the second quarter.”

EBITA excluding one-off costs in the second quarter amounted to €41.4 million (Q2 2011 €36.4 million).

Sales for the second quarter increased by 8.0%; whilst half-year period sales increased by 6.6%.

CSM is making efforts to improve its fortunes by further developing into a bio-based ingredients company, focusing on the Purac and Caravan Ingredients business. CSM is also currently undertaking prepatory work to divest the Bakery Supplies businesses.

Commenting on the second quarter results, Gerard Hoetmer, CEO of CSM, said: “The acceleration in both the increase in raw material costs and the decline in consumer demand in the course of 2011, meant that the comparison between the first half of 2012 and the first half of 2011 would be tough.

“I am therefore pleased that despite the ongoing difficult market situation we have been able to improve on our EBITA of the second quarter of 2011. This has been the result of a combination of margin and cost improvements supported by currency effects. Initiatives are being deployed within our organization to grow against the current market trend. So far our efforts have led to a lessening of the negative volume trend of the previous quarters, however, not yet to absolute volume growth.

“We were successful in fully compensating higher raw materials costs in the second quarter. As we have covered most of our raw materials for the remainder of 2012, we are confident that this increased margin will also benefit our second half 2012 results.”