Nutrition & Care

Q2 2021

Sales in the Nutrition & Care segment slightly increased compared with the prior-year quarter. This was driven by considerable sales growth in the Care Chemicals division, while sales in the Nutrition & Health division declined considerably.

Factors influencing sales in Q2 2021 – Nutrition & Care

 

Nutrition & Care

Care Chemicals

Nutrition & Health

Volumes

5%

8%

0%

Prices

2%

5%

–4%

Portfolio

–1%

–1%

–1%

Currencies

–4%

–4%

–4%

Sales

2%

8%

–9%

Sales performance was driven primarily by slightly higher overall volumes resulting from the volume increase in all business areas of Care Chemicals. Volumes in the Nutrition & Health division matched the level of the prior-year quarter. Higher volumes in the pharmaceutical business offset lower volumes in the animal nutrition business, mainly due to the ongoing expansion of the vitamin A plant.

Slightly higher prices overall also had a positive impact on sales. Higher price levels in the Care Chemicals division, especially in oleo surfactants and alcohols as well as in the home care, industrial and institutional cleaning and industrial formulators businesses, more than offset lower prices in Nutrition & Health.

Sales performance was weighed down by negative currency effects, mainly relating to the U.S. dollar.

Portfolio effects from the sale of the production site in Kankakee, Illinois, reduced sales.

Income from operations (EBIT) before special items declined considerably compared with the second quarter of 2020, due primarily to lower margins and higher fixed costs in both divisions.

Margins in Nutrition & Health declined, particularly because of the price and currency-related sales decrease as well as higher raw materials costs. The margin decrease in Care Chemicals resulted mainly from higher raw materials costs.

The higher fixed costs were due in part to scheduled turnarounds in both divisions and the expansion of the vitamin A plant.

EBIT included special income from the sale of the production site in Kankakee, Illinois.

Segment data – Nutrition & Care (Million €)

 

Q2

H1

 

2021

2020

+/–

2021

2020

+/–

Sales to third parties

1,584

1,555

2%

3,117

3,137

–1%

of which Care Chemicals

1,083

1,007

8%

2,142

2,095

2%

Nutrition & Health

501

548

–9%

975

1,042

–6%

Income from operations before depreciation, amortization and special items

239

362

–34%

555

719

–23%

Income from operations before depreciation and amortization (EBITDA)

295

359

–18%

608

711

–14%

Depreciation and amortizationa

101

104

–3%

199

212

–6%

Income from operations (EBIT)

194

255

–24%

409

499

–18%

Special items

56

–1

.

53

–11

.

EBIT before special items

138

256

–46%

356

510

–30%

Assets (June 30)

6,611

6,584

0%

6,611

6,584

0%

Investments including acquisitionsb

118

104

13%

218

206

6%

Research and development expenses

43

37

16%

83

74

12%

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