August 03, 2021 — DSM is aiming for further growth in its nutrition offerings after the “very good” results of the first half of 2021. Personalization and biosciences will continue to be an important objective, while increasing its benchmarks in terms of sustainability with a more ambitious carbon reduction program.
However, COVID-19 continues to have an impact on the bottom line, one of the knock-on effects being the drop in birth rates which appears to be a factor behind the “weak” sales in the nutrition sector. infantile.
Overall, there was 0% organic sales growth in the second quarter of 2021 for Human Nutrition (HNH). “This was up from a very difficult comparable of 13% in the second quarter of 2020, when sales were boosted by pantry loading,” the company explains.
Sectors are recovering from the impacts of the pandemic
DSM notes that consumer trends towards foods that are healthy, affordable, convenient, and suited to their cultural and personal preferences are helping drive overall growth. There is also an increased awareness of products that enhance immunity.
Conditions for food supplements remained favorable and Food & Beverage achieved a “strong performance”, driven by good demand for packaged food as well as increased demand for food services.
In addition, Food Specialties recorded organic sales growth of 8% with good volume growth in all key segments, namely dairy, bakery, brewery and savory products.
Personal Care & Aroma recorded 13% organic sales growth in the first half of 2021, driven by the post-COVID-19 recovery in demand for sun care, skin care and fine perfumes.
Increased sales impact expectations
Overall, the group’s sales increased 10%, with adjusted net profit up 21% to 444 million euros (US $ 523 million). Sales of Nutritions increased by 6 percent and those of Materials by 33 percent.
For the full year, DSM continues to expect an increase in Nutrition Adjusted EBITDA within the upper limit of its medium-term strategic ambition of high single-digit growth.
Along with a stronger performance in materials than expected in the first quarter 2021 commercial update, DSM now expects an adjusted EBITDA growth rate for the Group by half of the year , with good adjusted net free operating cash flow.
Rely on its economic model
DSM sees “significant leeway” for future growth and innovation in nutrition. It will continue to build on its business model of combining global products with local solutions.
The company is also adding a third dimension of precision and personalization that captures new capabilities in Big Data, digital and bioscience.
For example, the first half of this year saw the launch of Sustell, a data-driven sustainability service that helps improve the environmental footprint and economics of livestock.
DSM also created Hologram Sciences, a consumer-oriented company that provides people with holistic solutions to manage their health by combining health diagnostics, digital coaching and personalized nutrition.
The company will continue to seek mergers and acquisitions to build the future business model, as well as refine a stronger branding on its “health through nutrition” message.
Sustainable proteins for a growing population
With a population expected to reach nearly 10 billion people by 2050, DSM stresses that a huge increase in food production is necessary for food security. He also argues that a growing and better-off population provides a significant demand for animal and alternative proteins.
However, livestock farming must become more sustainable, with the DSM highlighting key aspects such as reducing emissions, protecting ecosystems and combating food waste.
He argues that productivity gains, improved nutrient utilization, and inhibition of enteric methane can all make animal protein more durable.
More ambitious carbon emissions targets
DSM also unveiled a target of halving its 2016 greenhouse gas emissions from its own operations by 2030. The company says accelerating its initial 30% reduction target is based on considerable progress made in recent years.
The new target has been reviewed and approved by the Science Based Targets initiative.
DSM ultimately aims to achieve net zero by 2050. “We have no time to waste and the private sector has a crucial role to play in the proactive implementation of the Paris Agreement,” the officials say. co-CEOs Geraldine Matchett and Dimitri de Vreeze.
Other actions the company has taken include doubling its internal carbon price to steer its investments and operational decisions towards carbon neutral operations and accepting that all of its electricity needs in North America be 100% renewable by 2022.
By Katherine Durrell
This functionality is provided by FoodIngredientsFirstsister site of, NutritionInsight.
To contact our editorial team, please email us at [email protected]
If you have found this article useful, you may wish to receive our newsletters.
Subscribe now to get the latest news straight to your inbox.