In its half-year results, Royal DSM saw organic sales in its Food & Beverages division boosted by 10 %, with net sales of EUR 753 m. The company reaped the benefits of “resilient demand” for packaged food, with only limited down trading. In particular, “good growth” was observed in the categories of dairy, baking, beverages and savoury.
The Dutch ingredients supplier’s overall profits were largely led by its Health, Nutrition & Bioscience business, which delivered sales up by 17 %, organic sales up 10 % and adjusted Ebitda up 8 %. “Our Health, Nutrition & Bioscience businesses delivered a good half-year performance, underpinned by resilient market demand and strong pricing,” comments Geraldine Matchett, Co-CEO of DSM. “While acknowledging the challenging global macroeconomic environment, we see continuing good market demand, positive pricing momentum and favourable foreign exchange effects supporting our full-year outlook.”
DSM reports that business conditions in the second quarter of the year are similar to its first quarter, with “good market demand across all segments.” Volumes impacted by temporary supply chain challenges – which mainly affected savoury and beverages – led to a backlog of orders. However, the business saw a strong exit rate into Q3.