Business Review
At a glance
- Decline in sales mainly related to volumes and prices
- Lower volumes and margins led to a considerably lower EBIT before special items
Sales to third parties in the Nutrition & Care segment declined by €1,208 million compared with the prior-year figure to €6,858 million. The Care Chemicals division recorded a decline in sales of €898 million to €4,721 million. In the Nutrition & Health division, sales declined by €310 million to €2,137 million.
|
Nutrition & Care |
Care Chemicals |
Nutrition & Health |
|---|---|---|---|
Volumes |
–7.1% |
–8.3% |
–4.3% |
Prices |
–5.8% |
–5.9% |
–5.7% |
Currencies |
–2.1% |
–1.8% |
–2.6% |
Portfolio |
– |
– |
– |
Sales |
–15.0% |
–16.0% |
–12.7% |
Lower demand was the main reason for the sales performance. This resulted in lower sales volumes in all business areas of the Care Chemicals division. In the Nutrition & Health division, a considerable increase in sales volumes in the aroma business could not offset the decrease in volumes in the other business areas.
Reduced prices due to lower raw materials prices and high product availability on the market also dampened the segment’s sales performance. In the Care Chemicals division, prices decreased in the oleo surfactants and alcohols business, as well as in the home care, industrial and institutional cleaning and industrial formulators business. In the Nutrition & Health division, prices mainly declined for vitamins.
Furthermore, currency effects, largely relating to the Chinese renminbi, had a slightly negative impact on sales performance.
|
|
2023 |
2022 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
6,858 |
8,066 |
–15.0% |
||||||||||
of which Care Chemicals |
|
4,721 |
5,619 |
–16.0% |
||||||||||
Nutrition & Health |
|
2,137 |
2,447 |
–12.7% |
||||||||||
Intersegment transfers |
|
429 |
588 |
–27.1% |
||||||||||
Sales including transfers |
|
7,286 |
8,654 |
–15.8% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
565 |
1,067 |
–47.0% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
578 |
1,055 |
–45.2% |
||||||||||
EBITDA margin before special items |
% |
8.2 |
13.2 |
– |
||||||||||
Depreciation and amortizationa |
|
459 |
450 |
2.0% |
||||||||||
Income from operations (EBIT) |
|
119 |
605 |
–80.3% |
||||||||||
Special items |
|
12 |
–13 |
. |
||||||||||
EBIT before special items |
|
107 |
618 |
–82.7% |
||||||||||
Investments including acquisitionsb |
|
765 |
642 |
19.0% |
||||||||||
Segment cash flow |
|
503 |
–99 |
. |
||||||||||
Assets |
|
7,496 |
8,038 |
–6.7% |
||||||||||
Return on capital employed (ROCE) |
% |
1.5 |
7.5 |
– |
||||||||||
Research and development expenses |
|
150 |
172 |
–12.9% |
||||||||||
|
||||||||||||||
Nutrition & Care – sales
By division
Income from operations (EBIT) before special items declined by €511 million to €107 million. The Nutrition & Health division recorded an overall negative EBIT before special items, mainly as a result of lower margins in vitamins. Reduced fixed costs resulting from efficiency measures had an offsetting effect. The Care Chemicals division made a significant earnings contribution; however, this was considerably below the figure of the previous year as a result of lower margins due to lower volumes in all business areas.
Compared with 2022, EBIT declined by €486 million to €119 million. This included special income from the sale of an office building in Europe in the second quarter of 2023.
Divisions |
Europe |
North America |
Asia Pacific |
South America, Africa, Middle East |
Total (million €) |
|---|---|---|---|---|---|
Care Chemicals |
53.1% |
18.6% |
18.8% |
9.4% |
4,721 |
Nutrition & Health |
36.9% |
17.8% |
33.6% |
11.7% |
2,137 |