DSM reports good start to the year in challenging environment and announces planned acquisition in texture ingredient company
Royal DSM reported a first quarter EBITDA of €311 million compared to €306 million in Q1 2012 and €243 million in Q4 2012. The improvement compared to Q1 2012 was realized despite a negative caprolactam effect of €65 million. This was achieved in a context of uncertain global macro-economic conditions as the European economy remained weak, Asia continued to show good levels of growth whilst the US maintained its modest rate of recovery. Life Sciences delivered growth once again, driven by Nutrition, while Materials Sciences performed well, except for caprolactam. During the quarter DSM benefited from the sale of certain DSM Resins & Functional Materials related distribution activities.
Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said:
In light of this perfrmormance, the company announced today that it has signed agreements to acquire a 19% equity interest in Yantai Andre Pectin Co. Ltd. (Andre Pectin), a China based producer of texturing ingredients. In addition, the parties have agreed that DSM has option rights to increase its stake in Andre Pectin to a majority stake at a later stage. The agreements are subject to customary approvals and certain closing conditions, including the approval of the selling party’s shareholders. Closing is expected in Q3 2013.