CSM Net Sales Rise 6.5%, Progressing on Divestment
13 Mar 2013 --- CSM has increased net sales by 6.5% to €3,315.7 millio n for the full year. As a result of better coverage of raw material costs and internal cost savings, EBITA, excluding one-offs, improved by 13.3%, to €170.8 million.
Compared to last year, net debt was substantially reduced by €104.7 million leading to a net debt/EB ITDA ratio of 2.0x. On 7 May 2012, CSM announced its intended transformation into a bio-based ingredients company and the intended divestment of the Bakery Supplies businesses. The company making good progress to date, in line with their original expectations.
Net sales in 2012 increased by 6.5% to €3,315.7 m illion (2011: €3,112.6 million). The effect of acquisitions contributed €24.5 million (0.8%). Exchange rate differences, especially the US dollar, positively impacted the sales figures by €166.0 million (5.3%). Adjusted for acquisition and currency effects, organic growth was €12.6 million (0.4%).
EBITA excluding one5off costs increased by €20.0 million, or 13.3%, to €170.8 million in 2012 (2011: €150.8 million). Exchange rate differences positively impacted EBITA by €12.1 million EBITA including one5off costs amounted to €123.9 million.
Compared to the trading update of 29 January 2013, the audited revenues for 2012 are €1.1 million higher, while the audited EBITA excluding one off costs are €0.4 million higher than earlier reported. One off costs are €0.9 million higher.
Net sales in 2012 increased by 6.5% to €3,315.7 million (2011: €3,112.6 million). The effect of acquisitions contributed €24.5 million (0.8%). Exc hange rate differences, especially the US dollar, positively impacted the sales figures by €166.0 million (5.3%). Adjusted for acquisition and currency effects, organic growth was €12.6 million (0.4%).
Organic growth for Bakery Supplies North America was the result of 2.4% lower volumes sold due to the unfavorable economic climate offset by avera ge higher sales prices (3.5%). In Europe volumes were lower by 2.6%. The negative impact was almost wholly offset by price/mix effects of 2.5%.
Volumes at Purac were down by 0.7% mainly due to a weaker economic climate and the impact of low cost in use, chemical substitutes in the meat preservation market. Average sales prices were slightly lower (0.5%).
The company reported that the strategic transformation of CSM is progressing in line with original expectations and timetable. “The divestment process is ongoing and we will make further announcements as appropriate.”
“2013 will be a transformational year for CSM as we build our new biobased ingredients organization centered on Caravan Ingredients and Purac. We expect to divest our Bakery Supplies businesses, and that the Bakery Supplies businesses will only contribute for a part of the year. The current macroeconomic environment is challenging and many aspects remain uncertain. However, CSM should benefit in 2013 from reduced volatility in raw material prices compared to the hectic period 2010 to early 2012. For Future CSM, 2013 wil l be a year in which we plan to invest in many exciting, innovative products, and to build our organization further. The returns on some of these investments will become visible in years beyond 2013,” the report concluded.
