DSM Delivers Strong Q1 Performance
DSM Nutritional Products saw its sales volumes in both Human Nutrition & Health (HNH) and Animal Nutrition & Health (ANH) grow compared to Q1 2005 (up 5% to EUR82 million)
28/04/06 DSM has reported a solid increase in sales and profits in first quarter with sales up 11% from Q1 2005.
At EUR 206 million, the Operating profit from continuing operations was EUR 24 million higher than in the first quarter of 2005. Net profit excluding exceptional items amounted to EUR 140 million, up 7% from the first quarter of 2005. Net profit amounted to EUR 161 million, up 23% from Q1 2005 (EUR 131 million). The net profit includes a positive amount (EUR 21 million) from exceptional items, which is the balance of the profit on the sale of DSM Minera (Chile) and the cost of the termination of the aspartame activities.
Net sales from continuing operations in Q1 2006 increased by more than 11% compared with Q1 2005. Sales volumes increased by 4%. Selling prices were up 3% on average. Exchange rate developments, in particular the higher exchange rate for the US dollar, had a positive effect of 3% on sales. Acquisitions contributed 1%.
DSM Nutritional Products saw its sales volumes in both Human Nutrition & Health (HNH) and Animal Nutrition & Health (ANH) grow compared to Q1 2005 (up 5% to EUR82 million), which provided ample compensation for the slightly lower prices for some products. Although the effect of avian flu on ANH sales volumes was once again limited in this quarter, it remains an important risk factor. DSM Nutritional Products saw its operating profit improve slightly as a result of lower fixed costs and an improvement of its product mix.
Sales at DSM Food Specialties remained at virtually the same level. The effects of the planned phasing-out of the feed-enzymes tolling activities that is taking place this year began to become visible. The business group nevertheless managed to improve its operating profit thanks to savings on fixed costs.
“The prospects for our markets for this year continue to be good, although there are still economic and monetary uncertainties. I remain confident about the year as a whole and I expect that our second-quarter operating profit will also be clearly above last year’s”, said Peter Elverding, chairman of the DSM Managing Board.
