Sales at Vitamin Giant DSM Nudge up One Percent Amid Boost in Demand for Food Enzymes

The world’s largest vitamin maker reported that EBITDA (earnings before interest, tax, depreciation and amortisation) was up 19 percent to €296 million ($334 million) in Q1.

 

Feike Sijbesma, chief executive of DSM, said: “We are pleased to report that we delivered a strong first quarter in terms of growth profitability and returns, with all businesses seeing the effects of our improvement programs.”

 

“Both Animal and Human Nutrition delivered above-market volume growth with Human Nutrition showing a marked improved albeit against a relatively weak comparable quarter in 2015.”

 

“While the macro-economic environment remain uncertain, we are confident that we will deliver in line with our medium-term goals. This will be supported by innovation, our growth initiatives and underpinned by our group-wide cost and productivity improvement programs.”

 

DSM reported eight percent growth across Human Nutrition, although this was helped by favorable comparisons with the year previous. Higher-value products made a strong contribution.

 

Overall Food & Beverage performed well, despite weak market conditions in the US.

 

Dietary supplements show improved sales of fish oil and multi vitamin-based supplements. Infant Nutrition performed well amid a healthy market.

 

Its Food Specialities unit delivered a four percent organic growth in Q1 powered by food enzymes and hydrocolloids.

 

Overall nutrition, including animal nutrition reported sales of €1.25 billion ($1.4 billion) in the QI.

 

DSM is making a big play in China, one of its fastest-growing markets.

 

Last year, it finalizes the purchase of Aland, a Hong Kong-based vitamin C manufacturer, further strengthening its position in the market.