DSM Integrated Annual Report 2020

Nutrition performance 2020

Highlights 2020

DSM Nutrition delivered a good performance in 2020, with 6% organic sales growth mainly volume driven. Together with the +3% contribution of the recent acquisitions (CSK, Glycom and Erber Group) and the -3% foreign exchange effect, total sales were up 6%.

Nutrition reported 7% growth in Adjusted EBITDA, supported by higher volumes, with the contribution from the acquisitions (+4%) being offset by a negative foreign exchange effect (-4%). The Adjusted EBITDA margin was up at 21.0% versus 20.7% last year owing to strong sales in Human Nutrition.

x € million

 

2020

 

2019

 

 

 

 

 

Net sales from continuing operations:

 

 

 

 

DSM Nutritional Products

 

 

 

 

- Animal Nutrition & Health

 

3,025

 

2,892

- Human Nutrition & Health

 

2,143

 

2,046

- Personal Care & Aroma Ingredients

 

404

 

425

- Other1

 

145

 

93

Total DSM Nutritional Products

 

5,717

 

5,456

 

 

 

 

 

DSM Food Specialties

 

648

 

572

Total Nutrition

 

6,365

 

6,028

 

 

 

 

 

Organic sales growth (in %)

 

6

 

2

Adjusted EBITDA

 

1,338

 

1,250

Adjusted operating profit

 

919

 

881

Capital expenditure

 

441

 

420

Capital employed at 31 December

 

8,308

 

6,731

ROCE (in %)

 

12.6

 

13.9

Adjusted EBITDA margin (in %)

 

21.0

 

20.7

R&D expenditure

 

234

 

218

Workforce at 31 December (headcount)

 

15,838

 

14,599

1

‘Other’ covers pharma and custom manufacturing & services activities.

Net sales bridge 2020

x € million

Net sales bridge nutrition (waterfall chart)

DSM Nutritional Products

DSM Nutritional Products consists of Animal Nutrition & Health, Human Nutrition & Health, and Personal Care & Aroma Ingredients.

DSM Nutritional Products saw a slightly positive impact from COVID-19 overall. Human Nutrition saw a strong increase in demand for immunity-optimizing products. In Animal Nutrition, overall demand growth was good but COVID-19 impacted sales over the quarters due to stocking effects at customers. Personal Care was weak due to lower demand for sun care and cosmetics, while Aroma Ingredients saw good demand for detergents and disinfectants.

Fit for Growth

Early in the year we launched the Fit for Growth program in DSM Nutritional Products. By simplifying the operating model and further improving business steering, the program was designed to better serve customers and respond to the differentiated needs of their respective end-markets. At the same time, it created a more efficient organization, which helped us to adjust to a more challenging environment. The new organizational structure is in place and we are working on further building out our specialty business.

Health & Nutrition Campus

In November, we announced the construction of the state-of-the-art DSM Nutritional Products Health & Nutrition Campus, which includes a new innovation building in Kaiseraugst (Switzerland). Accelerating innovation in the field of nutrition, health and bioscience, this innovation hub will provide modern research laboratories and collaborative workplaces to maximize interaction and the agility between our scientific competences and business units to further boost our customer-centricity for joint solution development. The Campus represents our long-term commitment to enforce DSM’s position as an end-to-end partner in the nutrition and health markets.

“2020 marked the fifth year in a row that we grew Sales and Adjusted EBITDA in line with our long-term objectives. On top of that, we made good strategic progress towards commercialization of our key innovation projects in both Animal and Human Nutrition & Health.”Chris Goppelsroeder

President & CEO DSM Nutritional Products and member of the DSM Executive Committee
Biosciences
Biosciences are any of the sciences that deal with living organisms.
Earnings before interest, tax, depreciation and amortization (EBITDA)
EBITDA is the sum of operating profit plus depreciation and amortization. Adjusted EBITDA is the EBITDA adjusted for material items of profit or loss coming from acquisitions/divestments, restructuring and other circumstances that management deem it necessary to adjust in order to provide clear reporting on the development of the business.
Organic sales growth
Organic sales growth is the total impact of volume and price/mix. Impact of acquisitions and divestments as well as currency impact are excluded.