Nutrition & Care

Q3 2020

Sales in the Nutrition & Care segment declined considerably compared with the third quarter of 2019, mainly due to the decrease in the Care Chemicals division. In the Nutrition & Health division, sales were down slightly from the prior-year quarter.

Factors influencing sales in Q3 2020 – Nutrition & Care

 

Nutrition & Care

Care Chemicals

Nutrition & Health

Volumes

0%

(2%)

3%

Prices

(1%)

(1%)

0%

Portfolio

0%

0%

1%

Currencies

(5%)

(5%)

(6%)

Sales

(6%)

(8%)

(2%)

The sales development was primarily driven by negative currency effects, mainly relating to the U.S. dollar.

In addition, prices decreased as a result of slightly lower prices in the Care Chemicals division, especially in the home care, industrial and institutional cleaning and industrial formulators business. This was largely attributable to lower raw materials prices. Prices in the Nutrition & Health division were on a level with the prior-year quarter.

Overall, volumes matched the level of the prior-year quarter. In the Nutrition & Health division, sales volumes were slightly higher in the aroma ingredients, pharmaceutical and human nutrition businesses. This offset lower volumes in the Care Chemicals division, especially in the personal care solutions business and in the home care, industrial and institutional cleaning and industrial formulators business.

Portfolio effects in the Nutrition & Health division, mainly from the acquisition of Isobionics, had a slightly positive impact on sales.

Income from operations (EBIT) before special items was considerably below the level of the prior-year quarter. The Nutrition & Health division recorded lower EBIT before special items, primarily as a result of higher fixed costs. In the prior-year quarter, fixed costs were reduced by an insurance payment. EBIT before special items also declined considerably in the Care Chemicals division. This was attributable to lower volumes and higher fixed costs. The figure for the prior-year quarter included a contractual one-off payment in the personal care solutions business.

EBIT for the third quarter of 2020 included special charges for impairments and provisions, primarily for the optimization of production structures in the Nutrition & Health division.

Compared with the second quarter of 2020, sales and EBIT before special items declined considerably in both divisions of the Nutrition & Care segment.

Segment data – Nutrition & Care (Million €)

 

Q3

January–September

 

2020

2019

+/–

2020

2019

+/–

Sales to third parties

1,427

1,519

(6%)

4,564

4,575

0%

of which Care Chemicals

938

1,022

(8%)

3,033

3,121

(3%)

Nutrition & Health

489

497

(2%)

1,531

1,454

5%

Income from operations before depreciation, amortization and special items

247

331

(25%)

966

976

(1%)

Income from operations before depreciation and amortization (EBITDA)

230

330

(30%)

941

956

(2%)

Depreciation and amortizationa

144

106

36%

356

401

(11%)

Income from operations (EBIT)

86

224

(62%)

585

555

5%

Special items

(57)

(1)

.

(68)

(112)

39%

EBIT before special items

143

225

(36%)

653

667

(2%)

Assets (September 30)

6,423

6,570

(2%)

6,423

6,570

(2%)

Investments including acquisitionsb

130

210

(38%)

336

419

(20%)

Research and development expenses

41

42

(2%)

115

115

a

Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)

b

Additions to property, plant and equipment and intangible assets