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