Business Review
At a glance
- Sales growth of €423 million to €6,442 million due to higher volumes and raised prices
- EBIT before special items declines €276 million to €497 million as a result of lower contributions from both divisions
Sales to third parties in the Nutrition & Care segment rose by €423 million year on year to €6,442 million in 2021. This was attributable to the Care Chemicals division, which recorded sales growth of €450 million to €4,439 million. By contrast, in the Nutrition & Health division, sales declined by €27 million compared with 2020 to €2,003 million.
|
Nutrition & Care |
Care Chemicals |
Nutrition & Health |
|---|---|---|---|
Volumes |
5.7% |
6.9% |
3.2% |
Prices |
4.5% |
7.4% |
–1.2% |
Portfolio |
–1.3% |
–1.2% |
–1.5% |
Currencies |
–1.9% |
–1.9% |
–1.8% |
Sales |
7.0% |
11.3% |
–1.3% |
The sales increase at segment level was primarily due to higher volumes. The Care Chemicals division increased its volumes mainly in the home care, industrial and institutional cleaning and industrial formulators business and in the personal care solutions business. Volumes rose slightly in the Nutrition & Health division, especially in the pharmaceutical and aroma ingredients businesses. This more than compensated for reduced volumes due to the lower availability of vitamin A.
Sales were positively impacted by higher prices overall due to significantly higher price levels in the Care Chemicals division, especially in the oleo surfactants and fatty alcohols business as well as in the home care, industrial and institutional cleaning and industrial formulators business, mainly as a result of higher raw materials prices. This more than compensated for slightly lower prices in the Nutrition & Health division.
Slightly negative currency effects, mainly relating to the U.S. dollar, had an offsetting effect.
Portfolio effects from the sale of the production site in Kankakee, Illinois, had a negative impact on sales in both divisions.
|
|
2021 |
2020 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
6,442 |
6,019 |
7.0% |
||||||||||
of which Care Chemicals |
|
4,439 |
3,989 |
11.3% |
||||||||||
Nutrition & Health |
|
2,003 |
2,030 |
–1.3% |
||||||||||
Intersegment transfers |
|
491 |
429 |
14.4% |
||||||||||
Sales including transfers |
|
6,933 |
6,448 |
7.5% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
909 |
1,190 |
–23.6% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
967 |
1,152 |
–16.0% |
||||||||||
EBITDA margin |
% |
15.0 |
19.1 |
− |
||||||||||
Depreciation and amortizationa |
|
413 |
464 |
–10.9% |
||||||||||
Income from operations (EBIT) |
|
554 |
688 |
–19.5% |
||||||||||
Special items |
|
57 |
–85 |
. |
||||||||||
EBIT before special items |
|
497 |
773 |
–35.7% |
||||||||||
Return on capital employed (ROCE) |
% |
8.2 |
10.6 |
− |
||||||||||
Assets |
|
7,231 |
6,214 |
16.4% |
||||||||||
Investments including acquisitionsb |
|
654 |
510 |
28.3% |
||||||||||
Research and development expenses |
|
172 |
160 |
7.7% |
||||||||||
|
||||||||||||||
Nutrition & Care – sales
By division
Compared with the prior-year figure, income from operations (EBIT) before special items declined by €276 million to €497 million due to lower earnings contributions from both divisions. The decline in earnings in the Nutrition & Health division resulted from lower margins, driven by higher prices for raw materials and energy, the lower availability of vitamin A, and higher fixed costs, primarily from higher bonus provisions. EBIT before special items in the Care Chemicals division decreased due mainly to higher fixed costs, largely as a result of higher bonus provisions.
EBIT declined by €134 million year on year to €554 million. It included special income from the sale of the production site in Kankakee, Illinois, in the second quarter of 2021. In the previous year, EBIT included special charges, mainly for impairments and provisions, primarily for the optimization of production structures in the Nutrition & Health division.
Divisions |
Europe |
North America |
Asia Pacific |
South America, |
Total |
|---|---|---|---|---|---|
Care Chemicals |
53% |
18% |
20% |
9% |
4,439 |
Nutrition & Health |
37% |
18% |
35% |
10% |
2,003 |