DSM full year profits surge 21% as transition to health, nutrition and bioscience hits fever pitch 

NETHERLANDS – Dutch multinational nutrition and health company Royal DSM has published its full year results where adjusted net profit soared 21% to €858m ($973.5m). 

DSM’s group sales soared 14% and adjusted EBITDA grew 18% during the period under review.  Adjusted net operating free cash flow was also up 9%. 

During the year, DSM also made progress in its journey towards becoming a fully focused health, nutrition, and bioscience company. 

Progress made in 2021 culminated in the unveiling of DSM’s new health, nutrition and bioscience (HNB) structure which became effective on January 1, 2022.   

HNB consists of the previous reportable operating segments of nutrition (which included animal nutrition, human nutrition, and other nutrition) and innovation.   

HNB is organized in three newly created business groups: food & beverage; health, nutrition & care; and animal nutrition & health. 

In the new structure, DSM said it is also well-positioned to address the huge environmental and societal challenges facing the global food system.  

DSM also announced a review of strategic options for its materials businesses in September 2021, including a possible change of ownership. 

DSM steps up Acquisitions & Divestments in 2021 

The company was busy on the acquisition front. Starting the year with the acquisition of flavor and fragrance biobased intermediates business of Amyris, Inc., in March 2021. 

This was followed by the full ownership of Midori USA, Inc., a biotechnology start-up developing targeted eubiotics for animals in July. 

In October, it acquired First Choice Ingredients, a US supplier of dairy-based savory flavorings for a wide range of food and beverage applications including plant-based alternatives.   

In December 2021, DSM acquired Vestkorn Milling, a producer of pea- and bean-derived ingredients for plant-based protein products with annual sales of about €20m (US$22.7m).   

DSM also trimmed its portfolio, selling Resins & Functional Materials and associated businesses to Covestro AG for about €1.4bn (US$1.59bn). 

DSM’s remaining solar back sheet business was sold to Worthen Industries, Inc. in June 2021, and in October 2021, DSM received about €300m ($340m) net in cash from the sale of its minority share in AOC.  

A positive outlook for 2022  

In a statement Geraldine Matchett and Dimitri de Vreeze, Co-CEOs noted that the company started to counter inflationary pressures in the second half of the year with appropriate pricing actions to offset cost increases. 

The first positive effects, according to the CEO can be seen in the fourth quarter, with the remainder being effective as of 2022. 

“We are well positioned going forward, with an exciting innovation portfolio of sustainability-focused solutions with considerable growth potential such as our methane-inhibiting livestock feed additive Bovaer,” Matchett and Vreeze said.  

 “We have a positive outlook for 2022 in line with our mid-term strategic targets for our Health, Nutrition & Bioscience activities.”  

DSM said it expects its health, nutrition and bioscience activities to deliver a high-single digit adjusted EBITDA increase.  

For the group, it expects a mid-single digit adjusted EBITDA increase, with a high-single digit adjusted net operating free cash flow increase.  

This outlook is based on DSM’s expectation of a stable adjusted EBITDA in materials following the strong performance in 2021. 

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