Specialty chemicals maker DSM's Q4 core profit beats on strong demand (updated)
15/02/2022 06:41
(Adds co-CEO's quote, more detail throughout)
AMSTERDAM, Feb 15 (Reuters) - Dutch specialty chemicals
maker DSM DSMN.AS posted a 13% jump in fourth-quarter core
profit on Tuesday, beating analysts' estimates, buoyed by robust
demand for its nutritional products despite higher prices.
DSM, which offers products ranging from vitamins and other
food supplements to specialized plastics used in cars, clothing
and construction, said it had raised its prices in the second
half of last year to offset increasing raw material costs.
"The first positive effects can be seen in the fourth
quarter, with the remainder being effective as of 2022",
co-Chief Executive Officers Geraldine Matchett and Dimitri de
Vreeze said.
The company's adjusted earnings before interest, taxes,
depreciation and amortisation (EBITDA) for the quarter ended
Dec. 31 surged to 440 million euros ($497.95 million), up from
390 million a year before. This beat the average analysts'
expectation 424 million euros.
Revenues increased 16% in the fourth quarter to 2.4 billion
euros, driven by "exceptionally strong" demand for animal feed,
as customers stocked up due to uncertainties about global supply
chain disruptions and rising inflation, DSM said.
In September, DSM said it planned to sell its materials
division, which some analysts suggested could sell for around
$5.7 billion, to focus purely on producing sustainable food and
health products. urn:newsml:reuters.com:*:nL1N2QG0BK
($1 = 0.8836 euros)
(Reporting by Bart Meijer; Editing by Himani Sarkar and Rashmi
Aich)
((Bart.Meijer@thomsonreuters.com; +31 20 504 5006; Reuters
Messaging: bart.meijer@thomsonreuters.com))