Top Stories
Top Stories
Earnings

DSM third-quarter core profit rises 11% on higher vitamin prices 

Key Points
  • DSM, whose products range from vitamins and food supplements to plastics and fibres, said sales increased 6 percent to 2.27 billion euros, led by an 8 percent growth in its nutrition division.
  • Revenue at the smaller materials division rose 2 percent, as higher selling prices offset raw material inflation. Volumes dropped slightly, however, as the sales of resins for coatings fell.
VIDEO3:2503:25
DSM CFO: Saw smaller currency headwinds in the third quarter

Dutch specialty chemicals company DSM on Wednesday beat analyst expectations with an 11-percent rise in third-quarter core profit, to 406 million euros ($460.4 million), helped by elevated vitamin prices and higher sales.

DSM, whose products range from vitamins and food supplements to plastics and fibres, said sales increased 6 percent to 2.27 billion euros, led by an 8 percent growth in its nutrition division.

Revenue at the smaller materials division rose 2 percent, as higher selling prices offset raw material inflation. Volumes dropped slightly, however, as the sales of resins for coatings fell.

"While there are currently uncertainties around macro-economic developments, we see continued good business conditions in Nutrition and most of our Materials businesses", Chief Executive Feike Sijbesma said in a statement.

DSM confirmed its 2018 outlook for an about 25 percent growth in adjusted EBITDA (earnings before interest, tax, depreciation and amortization), helped by supply problems at competitor BASF, which caused a spike in important vitamin prices. This added 15 million euros to core profit in the third quarter, the company said.

Jasper Juinen/Bloomberg via Getty Images

Analysts polled by DSM on average estimated adjusted EBITDA of 390 million euros, after the Dutch firm posted a core profit of 365 million euros a year earlier.