DSM Announces 15% Price Increase for Fish Based Omega-3 Portfolio

DSM Nutritional Products has announced a global pricing increase by minimum of 15% for its fish based Omega-3 portfolio. The pricing adjustment is needed to recover from cost increases for sourcing crude fish oils rich in omega-3.

22 Feb 2013 --- The trading price for crude fish oil has reached an all-time high. There is very limited stock globally while the demand continues to increase from all market sectors such as Aquaculture, Animal Feed, Pharmaceuticals and Human Nutrition. DSM is the world’s leading supplier of Omega-3 fish oils for Human Nutrition & Health and is committed to offering the best quality ingredients to the world market. This adjustment is effective immediately for all newly contracted business, existing contracts will be honored.

This week DSM reported that fourth quarter organic sales growth for Nutrition was 1% compared to Q4 2011 with volume growth (4%) partially offset by lower prices (-3%). Reported sales were positively impacted by favorable exchange rates (1%) and the acquisition of Ocean Nutrition Canada.

Human Nutrition & Health sales were up due to slightly higher prices and good volume growth. Premixes and Nutritional Lipids recorded double digit growth. Ocean Nutrition Canada showed strong sales momentum with the first synergy sales being realized. The Q4 results of Ocean Nutrition Canada were in line with expectations with sales of €36 million and EBITDA of €11 million.

Animal Nutrition & Health sales were somewhat lower due to stable volumes and a negative price and mix effect.

Personal Care showed stable volumes with somewhat higher prices.

DSM Food Specialties continued its growth especially in enzymes and savory ingredients.

EBITDA for the fourth quarter was €204 million, a 6% increase compared to the same quarter of 2011, mainly driven by the contribution of Ocean Nutrition Canada. The EBITDA margin was stable at 22.1%.

Full year organic growth was 2% driven by volumes and stable prices. EBITDA was €793 million and increased by 8% as a result of continued growth in advanced forms, premixes and nutritional lipids and contributions from acquisitions.