DSM surpasses sales projections, raises climate targets

The company produces a methane-reducing feed additive for cattle
calendar icon 2 August 2022
clock icon 2 minute read

DSM's sales beat market expectations on Tuesday, as the Dutch specialty chemicals maker benefitted from resilient demand and strong pricing in the first half of the year, reported Reuters.

The group, which offers products from vitamins and food supplements to specialised plastics used in cars, clothing and construction, had a strong start to the year as solid demand and price increases offset the escalating inflation.

For the first six months of the year, DSM reported sales from continuing operations of 4.12 billion euros ($4.23 billion), above analysts' average estimate of 4.04 billion in a company-provided consensus compiled by Vara Research.

"We see continued good market demand, positive pricing momentum and favorable foreign exchange effects supporting our full-year outlook," DSM's co-chief executives Geraldine Matchett and Dimitri de Vreeze said.

DSM posted adjusted core earnings (EBITDA) from continuing operations of 746 million euros in the first half of the year, against 742 million expected by analysts.

The company, which is selling its materials division to focus purely on producing sustainable food and health products, also revised upwards its environmental targets.

"The ramifications of climate inaction have been inescapable again in recent weeks," the co-CEOs said in a separate statement.

By 2030, it now aims to reduce scope 1 and 2 greenhouse gas emissions by 59% from 2016 levels, and to source 100% of its electricity from renewables, up from the 75% target set in 2019.

As part of efforts to cut methane emissions, DSM in April partnered with Elanco Animal Health, giving it exclusive US licensing rights to commercialise DSM's methane-reducing innovative feed additive for beef and dairy cattle.

"Action cannot wait as no company can be successful in a world that fails," Matchett and de Vreeze added.

Source: Reuters

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.