Nutrition & Care

Q3 2019

The Nutrition & Care segment recorded slight sales growth compared with the prior-year quarter. Considerably higher sales in the Nutrition & Health division more than offset slightly lower sales in the Care Chemicals division.

Factors influencing sales in Q3 2019 – Nutrition & Care

 


Nutrition & Care

Care Chemicals

Nutrition & Health

Volumes

 

3%

(1%)

12%

Prices

 

(2%)

(2%)

0%

Portfolio

 

0%

0%

0%

Currencies

 

2%

2%

3%

Sales

 

3%

(1%)

15%

The positive sales development was primarily attributable to significantly higher volumes in the Nutrition & Health division as a result of improved product availability in the animal nutrition and the flavors and fragrances businesses. This more than offset the slight decline in sales volumes in the Care Chemicals division, especially in the oleo surfactants and alcohols business. Sales were also lifted by currency effects in both divisions. Slightly lower prices in the Care Chemicals division, mainly in the oleo surfactants and alcohols business, had an offsetting effect. By contrast, prices in the Nutrition & Health division were at the level of the prior-year quarter.

Overall, income from operations (EBIT) before special items rose considerably year on year. This was largely attributable to a considerable increase in EBIT before special items in the Care Chemicals division due to a contractual one-off payment in the personal care solutions business, as well as higher margins in the oleo surfactants and alcohols business and in the home care, industrial and institutional cleaning and industrial formulators business.

By contrast, EBIT before special items declined slightly in the Nutrition & Health division. This was primarily due to higher raw materials prices and fixed costs. Higher earnings contributions from the increase in sales volumes had an offsetting effect.

Segment data – Nutrition & Care (Million €)

 

 

Q3

January–September

 

 

2019

2018

+/–

2019

2018

+/–

a

Amortization of intangible assets and depreciation of property, plant and equipment (including impairments and reversals of impairments)

b

Additions to intangible assets and property, plant and equipment

Sales to third parties

 

1,519

1,469

3%

4,575

4,476

2%

of which Care Chemicals

 

1,022

1,037

(1%)

3,121

3,229

(3%)

Nutrition & Health

 

497

432

15%

1,454

1,247

17%

Income from operations before depreciation, amortization and special items

 

331

290

14%

976

945

3%

Income from operations before depreciation and amortization (EBITDA)

 

330

286

15%

956

933

2%

Depreciation and amortizationa

 

106

100

6%

401

287

40%

Income from operations (EBIT)

 

224

186

20%

555

646

(14%)

Special items

 

(1)

(3)

67%

(112)

(11)

.

EBIT before special items

 

225

189

19%

667

657

2%

Assets (September 30)

 

6,570

6,144

7%

6,570

6,144

7%

Investments including acquisitionsb

 

210

71

196%

419

182

130%

Research and development expenses

 

42

37

14%

115

105

10%