DSM beats half-year sales estimates, raises climate targets (updated)
02/08/2022 07:02
(Adds detail, quotes)
Aug 2 (Reuters) - DSM's DSMN.AS sales beat market
expectations on Tuesday, as the Dutch specialty chemicals maker
benefitted from resilient demand and strong pricing in the first
half of the year.
The group, which offers products from vitamins and food
supplements to specialised plastics used in cars, clothing and
construction, had a strong start to the year as solid demand and
price increases offset the escalating inflation.
For the first six months of the year, DSM reported sales
from continuing operations of 4.12 billion euros ($4.23
billion), above analysts' average estimate of 4.04 billion in a
company-provided consensus compiled by Vara Research.
"We see continued good market demand, positive pricing
momentum and favorable foreign exchange effects supporting our
full-year outlook," DSM's co-chief executives Geraldine Matchett
and Dimitri de Vreeze said.
DSM posted adjusted core earnings (EBITDA) from continuing
operations of 746 million euros in the first half of the year,
against 742 million expected by analysts.
The company, which is selling its materials division to
focus purely on producing sustainable food and health products,
also revised upwards its environmental targets.
"The ramifications of climate inaction have been inescapable
again in recent weeks," the co-CEOs said in a separate
statement.
By 2030, it now aims to reduce scope 1 and 2 greenhouse gas
emissions by 59% from 2016 levels, and to source 100% of its
electricity from renewables, up from the 75% target set in 2019.
As part of efforts to cut methane emissions, DSM in April
partnered with Elanco Animal Health, giving it exclusive U.S.
licensing rights to commercialise DSM's methane-reducing
innovative feed additive for beef and dairy cattle.
"Action cannot wait as no company can be successful in a
world that fails," Matchett and de Vreeze added.
($1 = 0.9734 euros)
(Reporting by Juliette Portala, editing by Milla Nissi)
((juliette.portala@tr.com ; +48 587 696 607))