Nutrition & Care

Q1 2019

First-quarter sales in the Nutrition & Care segment matched the prior-year level. Considerably higher sales in the Nutrition & Health division were offset by slightly lower sales in the Care Chemicals division.

Factors influencing sales in Q1 2019 – Nutrition & Care

 

 

Nutrition & Care

Care Chemicals

Nutrition & Health

Volumes

 

(1%)

(6%)

13%

Prices

 

(1%)

0%

(5%)

Portfolio

 

0%

0%

0%

Currencies

 

2%

2%

2%

Sales

 

0%

(4%)

10%

Positive currency effects, especially relating to the U.S. dollar, increased sales slightly in both divisions. By contrast, sales were negatively impacted by lower prices, especially in the Nutrition & Health division’s animal nutrition business. Sales volumes also declined slightly overall. Sales volumes in the Care Chemicals division decreased significantly, mainly as a result of lower volumes in the home care, industrial and institutional cleaning, and industrial formulators business. By contrast, the Nutrition & Health division considerably increased sales volumes, primarily due to higher volumes of aroma ingredients as a result of significantly improved product availability from our plants in Ludwigshafen, Germany, and Kuantan, Malaysia.

Income from operations (EBIT) before special items was considerably below the figure for the first quarter of 2018. This was mainly attributable to higher fixed costs in the Nutrition & Health division, largely due to an insurance refund received in the prior-year quarter for production outages in 2017. In addition, margins declined in the animal nutrition business; as a result, earnings in the Nutrition & Health division decreased significantly overall. A considerable improvement in earnings in the Care Chemicals division, mainly from higher margins, had an offsetting effect.

EBIT included an impairment in connection with the optimization of production sites within the Nutrition & Health division in Europe.

Segment data – Nutrition & Care (Million €)

 

 

Q1

 

 

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

 

1,561

1,568

0%

of which Care Chemicals

 

1,095

1,144

(4%)

Nutrition & Health

 

466

424

10%

Income from operations before depreciation, amortization and special items

 

327

346

(5%)

Income from operations before depreciation and amortization (EBITDA)

 

320

340

(6%)

Depreciation and amortizationa

 

196

92

113%

Income from operations (EBIT)

 

124

248

(50%)

Special items

 

(98)

(6)

.

EBIT before special items

 

222

254

(13%)

Assets (March 31)

 

6,435

5,970

8%

Investments including acquisitionsb

 

99

42

136%

Research and development expenses

 

35

33

6%