Royal DSM NV (DSM), the world’s largest vitamin maker, said the market for nutritional supplements showed signs of improvement at the end of the first quarter, helping bolster the payback on some $3.2 billion in takeovers.
Food manufacturers began restocking supplies, helping lift first-quarter volumes almost 14 percent compared with the prior quarter, the Heerlen, Netherlands-based company said in a statement. Group earnings before interest, taxes, depreciation and amortisation fell 12 percent to 270 million euros ($374 million). Analysts in a Bloomberg survey estimated 278 million euros, on average.
Reports questioning the health benefits of supplements such as Omega3 has dented appetite for DSM’s range of additives and ingredients in the U.S. Chief Executive Officer Feike Sijbesma has placed nutrition center stage in the company’s growth plans. He’s also been cutting costs and jobs to bolster earnings.
“DSM delivered results in line with expectations, despite further currency deterioration during the quarter,” Sijbesma said in the statement. “Market conditions in nutrition began to show some signs of improvement.”
DSM is in negotiations to take over Chinese vitamin producer Aland Nutraceutical Holding Ltd., a step that would open up the market there.
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