Nutrition & Care

Q1 2020

In the Nutrition & Care segment, sales rose slightly compared with the first quarter of 2019. Considerable sales growth in the Nutrition & Health division more than offset the slight sales decrease in the Care Chemicals division.

Factors influencing sales in Q1 2020 – Nutrition & Care

 

Nutrition & Care

Care Chemicals

Nutrition & Health

Volumes

4%

3%

8%

Prices

(3%)

(4%)

(2%)

Portfolio

0%

0%

0%

Currencies

0%

0%

0%

Sales

1%

(1%)

6%

Sales development was mainly driven by higher sales volumes in both divisions. The increase in volumes in the Nutrition & Health division was primarily due to higher sales volumes in the animal nutrition, aroma ingredients and pharmaceutical businesses. The Care Chemicals division recorded particularly strong volumes growth in the home care, industrial and institutional cleaning and industrial formulators business in Europe and North America, and in the oleo surfactants and alcohols business in Europe and South America.

Sales were dampened by slightly lower price levels in both divisions. The decline in prices in the Care Chemicals division was primarily due to lower raw materials prices. In the Nutrition & Health division, prices mainly decreased in the aroma ingredients and animal nutrition businesses.

We considerably increased income from operations (EBIT) before special items compared with the prior-year quarter due to a significantly higher contribution from the Nutrition & Health division, largely as a result of improved product availability.

EBIT before special items in the Care Chemicals division was slightly higher year on year. Lower fixed costs more than offset the weaker margins in the home care, industrial and institutional cleaning and industrial formulators business.

Segment data – Nutrition & Care (Million €)

 

 

Q1

 

 

2020

2019

+/–

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

 

1,582

1,561

1%

of which Care Chemicals

 

1,088

1,095

(1%)

Nutrition & Health

 

494

466

6%

Income from operations before depreciation, amortization and special items

 

357

327

9%

Income from operations before depreciation and amortization (EBITDA)

 

352

320

10%

EBITDA margin

%

22.3

20.5

Depreciation and amortizationa

 

108

196

(45%)

Income from operations (EBIT)

 

244

124

97%

Special items

 

(10)

(98)

90%

EBIT before special items

 

254

222

14%

Assets (March 31)

 

6,546

6,435

2%

Investments including acquisitionsb

 

102

99

3%

Research and development expenses

 

37

35

6%