Press Release
November 1, 2022
DSM provides Q3 2022 trading update
DSM’s trading update for the first nine months of 2022 is out now and our Health, Nutrition & Bioscience businesses all delivered good sales growth. Market demand remained resilient in what is a challenging macro-economic environment with the rising cost inflation.
DSM provides nine months 2022 trading update
Heerlen, NL, 01 Nov 2022 07:00 CET
Highlights1,2
Continuing Operations:
- Health, Nutrition & Bioscience delivered a solid performance in the first nine months with sales up 19% and organic sales growth of 10%
o Animal Nutrition & Health: +8% organic sales growth
o Health, Nutrition & Care: +10% organic sales growth
o Food & Beverage: +12% organic sales growth - Adjusted EBITDA up 6% reflecting continuing inflationary environment
- Full Year outlook 2022 lowered: Adjusted EBITDA expected to increase by low single digits
Key figures - Continuing Operations
| in € million | Jan-Sept 2022 | Jan-Sept 2021 | % Change | Volume | Price/mix | FX | Other |
| Sales | 6,297 | 5,341 | 18% | 2% | 7% | 7% | 2% |
| HNB | 6,245 | 5,272 | 19% | 2% | 8% | 7% | 2% |
| ANH | 2,814 | 2,430 | 16% | -1% | 9% | 8% | 0% |
| HNC | 2,234 | 1,892 | 18% | 4% | 6% | 8% | 0% |
| FNB | 1,158 | 917 | 26% | 4% | 8% | 5% | 9% |
| Adjusted EBITDA | 1,102 | 1,040 | 6% | ||||
| HNB | 1,174 | 1,110 | |||||
| Corporate | -72 | -70 | |||||
| Adjusted EBITDA margin | 17.5% | 19.5% | |||||
| HNB | 18.8% | 21.1% |
Co-CEO statement
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs, commented: “All our businesses delivered good organic growth during the third quarter. We continue to counter rising energy and raw material prices, which accelerated especially in Europe, albeit with a time lag. Market demand remained resilient across our three businesses in a challenging macro-economic environment.
Given the positive structural long-term drivers of our business, underpinned by progress on our strong pipeline of innovations, we are confident in the mid-term financial targets for DSM.
Since their announcements back in May, good progress has been made towards closing the divestment of DSM Engineering Materials to Advent International and LANXESS, and our forthcoming merger with Firmenich. These significant steps will lead to the establishment of DSM-Firmenich, a purpose-led leading creation and innovation partner in nutrition, beauty and well-being.”
Q3 Highlights
Continuing Operations:
- Health, Nutrition & Bioscience delivered a solid quarter with sales up 20%, organic sales growth of 9% and Adjusted EBITDA up +3%
o Animal Nutrition & Health: +6% organic sales growth
o Health, Nutrition & Care: +11% organic sales growth
o Food & Beverage: +14% organic sales growth
Key figures - Continuing Operations
| in € million | Q3 2022 | Q3 2021 | % Change | Volume | Price/mix | FX | Other |
| Sales | 2,182 | 1,824 | 20% | 2% | 7% | 9% | 2% |
| HNB | 2,169 | 1,801 | 20% | 2% | 7% | 9% | 2% |
| ANH | 975 | 849 | 15% | 0% | 6% | 9% | 0% |
| HNC | 770 | 632 | 22% | 3% | 8% | 11% | 0% |
| FNB | 405 | 308 | 31% | 3% | 11% | 8% | 9% |
| Adjusted EBITDA | 356 | 347 | 3% |
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| HNB | 380 | 369 |
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| Corporate | -24 | -22 |
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| Adjusted EBITDA margin | 16.3% | 19.0% |
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| HNB | 17.5% | 20.5% |
Q3 saw strong organic sales growth, with ongoing solid end-use demand in an increasingly inflationary environment.
- Animal Nutrition & Health volumes were in-line with a strong prior year that had delivered 14% volume growth. Pricing increased +6% in Q3, in comparison to +11% in H1, reflecting lower pass-through costs and lower vitamin prices
- Health, Nutrition & Care delivered strong growth with pricing +8% and solid sales volumes +3% on strong performances in Personal Care & Aroma, Early Life Nutrition and Biomedical
- Food & Beverage also delivered solid growth with volumes up 3% and strong pricing of 11% with Dairy, Baking, Beverages and Hydrocolloids performing particularly well
Health Nutrition & Bioscience Adjusted EBITDA was up 3%, with an 8% contribution from acquisitions and foreign exchange effects. The Adjusted EBITDA margin for these businesses was 17.5%, compared to 20.5% in the prior year period, with a 150bps dilutive mathematical effect from price increases and foreign exchange effects.
Outlook 2022
DSM has lowered its full year 2022 outlook, and now expects its Adjusted EBITDA for Continuing Operations (Health, Nutrition & Bioscience and Corporate Activities) to increase by a low-single digits.
1 Continuing Operations reflects the results of DSM’s Health, Nutrition & Bioscience and Corporate Activities as of 1 January 2022. DSM’s Materials businesses have been reclassified to Discontinued Operations effective as of 1 January 2022
2 . Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects results from usual operations. Organic sales growth is the total impact of volume and price/mix.