Chemicals group DSM's sales meet expectations helped by price hikes (updated)
16/02/2023 06:37
(Adds management quotes, details about merger with Firmenich)
Feb 16 (Reuters) - DSM DSMN.AS on Thursday reported
annual sales roughly in line with expectations as the Dutch
specialty chemicals maker kept hiking prices to counter higher
costs.
"The fourth quarter saw overall continued resilient
demand but also high raw materials costs, lower prices of some
vitamins and customer de-stocking. These conditions have
continued into 2023," co-CEOs Geraldine Matchett and Dimitri de
Vreeze said in a statement.
DSM last year struck deals to take over Swiss flavour and
fragrance maker Firmenich and sell its engineering materials
division to become a major player in the fast-growing food
ingredients and health products markets.
It declined to provide a guidance for 2023, saying it would
do so once the two groups had been consolidated and the combined
business plan approved.
"With the integration plan in place, we now enter the final
phase of the merger process," the co-CEOs said. The acceptance
period for DSM shareholders to exchange their shares to
DSM-Firmenich shares will end on April 11 at the latest.
The group reported 2022 sales of 8.39 billion euros ($8.98
billion) from continuing operations, compared with analysts'
estimate of 8.41 billion euros in a poll compiled by Vara
Research.
DSM also confirmed its medium-term targets.
($1 = 0.9341 euros)
(Reporting by Tristan Chabba and Ozan Ergenay in Gdansk)
((Tristan.Chabba@thomsonreuters.com;))