CSM Reports 4.1% Sales Increase, Plans Major Cost-Cutting Program for 2012

Feb 21 2012 --- CSM increased net sales by 4.1% to € 3,112.6 million for the full year, mainly driven by price increases to compensate for the higher input costs. The tough trading environment witnessed in 2011, remained in place for the fourth quarter.

 

The strong price increases did not yet fully cover the increased raw material costs, putting our margins under pressure. EBITA, excluding one offs, amounted to €150.8 million for the full year. CSM presents its conclusions from its business review today. This will reposition CSM for profitable growth through reducing the cost base, simplifying the organization and reshaping the portfolio in Bakery Supplies and decreasing the financial dependency of Purac on Bakery Supplies.

 

Sales in 2011 increased by € 122.5 million (4.1%) compared to 2010. Currency effects, mainly US dollar driven, were a negative € 81.5 million. Acquisitions contributed € 94.0 million (3.1%). Organic sales growth was 3.7% for the full year, driven by a price/mix effect of 8.7% and a negative volume effect of 5.0%.

 

Q4 sales increased by 1.5%, with organic growth of 0.9% to which all divisions contributed.

 

EBITA in 2011 excluding one-off costs decreased by 30% to € 150.8 million (2010: € 215.2 million).

 

EBITA including the one-off costs amounted to € 130.2 million. The net acquisition effect amounted to € 9.7 million (5.0%) and currency effects were a negative € 4.4 million. Q4 EBITA excluding one-off costs decreased by € 15.7 million. 

 

An impairment charge of € 249 million (net € 222.4 million after tax) related to a goodwill write-down for Bakery Supplies Europe, resulted in a net loss of € 174.3 million.