DSM gains more turnover mainly through higher prices | Financial

DSM still suffered from disruptions in the supply chains and corona lockdowns in China. These also influenced consumer demand in that country and affected DSM indirectly. The product delivery situation did improve during the second quarter and DSM saw good sales volume and high prices at the start of the third quarter.

“Above expectations”

This is the opinion of DFT reporter Theo Besteman: ‘DSM comes slightly above market expectations with its second-quarter sales figures and adjusted EBITDA. The company continues to suffer from supply disruptions, but is successfully passing on the increased costs, with a higher margin over the first half of the year. On the other hand, despite ‘strong’ figures and ‘good market conditions’, it is not broadening its outlook for the whole of 2022. Adjusted EBITDA will end in “high single digits” for the company that divested its last two Materials businesses for €5.3 billion. It does raise one of its sustainability goals: all energy for the company active in 23 countries with 23,000 employees must come from sustainable sources by 2030, compared to 75% last quarter.’ follow @theobesteman on Twitter.

In the end, turnover was 17 percent higher than in the first six months of 2021 at 4.1 billion euros. The net profit amounted to 458 million euros. DSM’s forecast for the full year remained unchanged.

Top executives Geraldine Matchett and Dimitri de Vreeze speak of a good six months, but pay particular attention to the turn that DSM is making. In recent months, the company announced a merger with Swiss peer Firmenich and sold its materials division.

DSM also announced its intention to become CO2 neutral more quickly. For example, the company wants to obtain all its electricity from sustainable sources by 2030, which was previously aimed at 75 percent. This also leads to stricter emissions targets, but that is still being worked on. For the emissions by users of its products, DSM is now aiming for an absolute CO2 reduction instead of one that is linked to the amount of products it sells.

DSM gains more turnover mainly through higher prices | Financial
Source link DSM gains more turnover mainly through higher prices | Financial

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