DSM Profit Beats Estimates on Growth in Nutrition and Materialsby
Nutrition ebitda grows 15 percent to 225 million euros
Materials ebitda grows 10 percent to 95 million euros
Royal DSM NV, the largest vitamin maker in the world, reported first quarter earnings that beat estimates amid signs of a recovery in demand for health supplements.
Earnings before interest, taxes, depreciation and amortization from continuing operations rose 19 percent to 296 million euros ($333 million), the Heerlen, Netherlands-based company said in a statement on Tuesday. Analysts had estimated profit of 271 million euros on average. Ebitda at the nutritional unit gained 15 percent to 225 million euros, while the materials unit added 10 percent to 95 million euros.
“Both Animal and Human Nutrition delivered above-market volume growth, with Human Nutrition showing a marked improvement” Chief Executive Officer Feike Sijbesma said in the statement. “Materials remained robust, helped in part by the shift towards higher added-value products in the portfolio.”
The Dutch company is cutting costs and jobs and making additional savings on raw materials and energy to boost margins by 2018. The CEO also plans to exit joint ventures in pharma and bulk chemicals, which he considers financial holdings rather than strategic.
Shares of the company have gained 13 percent at 52.16 euros in Amsterdam since the start of this year, valuing the company at 9.5 billion euros.