- Sales improve significantly in all business areas and regions as a result of strong demand
- Substantial increase in earnings compared with previous year
- Solid margins despite intense competition in the vitamins business
- Outlook 2011: substantial sales growth, supported by the Cognis acquisition; earnings at the high level of 2010
Nutrition & Health – Sales by region
(location of customer)
The Nutrition & Health division was established at the beginning of August 2010 to prepare for the integration of the Cognis activities. It includes the business areas Human and Animal Nutrition, Pharma Ingredients & Services and Aroma Chemicals, which all previously belonged to the Care Chemicals division.
The Nutrition & Health division posted sales to third parties of €1,482 million, an increase of €144 million over 2009 (volumes 8%, prices –2%, portfolio 1%, currencies 4%). As a result of the general recovery in demand, we were able to increase sales volumes substantially. The volume growth led to a significant improvement in sales in all business areas and all regions. The Aroma Chemicals business posted the greatest growth. The stronger U.S. dollar boosted our sales performance and more than compensated for lower price levels.
As the market environment improved compared with the previous year, we were able to substantially increase our income from operations. This was primarily a result of robust demand, higher capacity utilization rates and – despite intense competition in the vitamins business – solid margins. All business areas contributed to earnings growth. Special charges arose from the use of inventory revalued at market prices in the course of the Cognis acquisition.
We expect the positive business development to continue in 2011. We aim to increase sales volumes and expect the Cognis acquisition to contribute to substantial sales growth. The expansion of the nutrition business area and the integration of Cognis will result in additional charges in 2011. Nevertheless, we aim to maintain earnings at the high level of the previous year.