DSM misses Q1 forecasts due to high inflation, low vitamin prices (updated)
02/05/2023 06:44
(Adds details, context, management quote)
May 2 (Reuters) - Dutch specialty chemicals maker DSM's
DSMN.AS first-quarter core profit and sales missed
expectations on Tuesday, hit by persistently high inflation and
low vitamin prices.
DSM and Firmenich reported quarterly results separately for
the last time ahead of the completion of their merger due next
Monday.
The merger, agreed in May 2022, creates a major player in
the fast-growing food ingredients and health products markets,
challenging market leader IFF Inc IFF.N , Switzerland's
Givaudan GIVN.S and Germany's Symrise SY1G.DE .
DSM, which makes products from vitamins and food supplements
to specialised plastics used in cars, clothing and construction,
reported quarterly adjusted core earnings (EBITDA) of 278
million euros ($305.36 million), down 24% on the year and below
analysts' estimate of 280 million euros in a poll compiled by
Vara Research.
It expects the tough conditions to persist in the current
quarter, before improving in the second half.
"We anticipate a stronger second half of the year across all
businesses as inflationary pressure eases, as volumes recover,
especially in China, and vitamin prices start to normalize,"
DSM's co-CEOs Geraldine Matchett and Dimitri de Vreeze said.
DSM's sales fell 6% to 1.89 billion euros in the quarter,
missing the consensus of 2.04 billion euros.
The company said it would provide a full-year guidance for
the combined DSM-Firmenich group when it published half-year
results on Aug. 2.
($1 = 0.9104 euros)
(Reporting by Augustin Turpin and Lina Golovnya in Gdansk;
editing by Milla Nissi)
((augustin.turpin@thomsonreuters.com ;
lina.golovnya@thomsonreuters.com))