SUBSCRIBE

Breaking News on Supplements, Health & Nutrition - Europe US edition | APAC edition

News > Suppliers

Read more breaking news

 

 

Vitamin price drops but BASF nutrition sees 4% sales growth

By Shane Starling , 29-Oct-2012

Vitamin price drops but BASF nutrition sees 4% sales growth

BASF’s nutrition and health unit (N&H) earned €492m in Q3 – 4% more for the quarter than in 2011 when it had sales of €471m – despite falling prices for most vitamins.

The unit contributed just over 10% of the €4.015bn quarterly revenue for the Performance Products division that includes care, paper and performance chemicals.

For the first three quarters of year the N&H unit grew sales 4% on 2011 to €1.477bn with Performance Products overall 9-month revenues at €12.136bn. For the same period the whole BASF group had sales of €59.081bn – up 6.6% on 2011.

But profits after extraordinary items were removed dropped 21% for the Performance Products division, from €403m to €325m for the quarter, and 10% from €1.266bn to €1.136bn for the three quarters to September.

We increased sales in the Nutrition & Health division, mainly owing to positive currency effects and demand-driven higher sales volumes in almost all business areas,” BASF said.

Lower sales prices for vitamins, however, had a negative impact on sales and earnings. Increased raw material costs could only be partly passed on to the market, putting pressure on margins. Earnings were therefore significantly below the good level of the previous third quarter.”

But the company did not reveal the specific earnings for the N&H unit.

More broadly, chief executive Kurt Bock singled out the economic downturn and slower Chinese activity as major impacts on the German giant’s business.

“In the past quarter, the outlook for the world economy has once again not improved and the uncertainty on the international capital markets continues,” Bock said.

“In China, growth in the third quarter of 2012 has slowed once again compared with the same quarter of the previous year. We see stabilisation at the current level in China, but no visible upturn.”

The company was not available for further comment at the time of publication.

BASF bolstered its N&H division significantly at the end of 2010 when it bought Cognis for about €3bn.

Related products

Live Supplier Webinars

Polyphenols tipped to become the way to innovate in Sports Nutrition
Fytexia
Alpha & Omega in Sports Nutrition – Using Omega 3’s and A-GPC to improve performance and recovery.
KD Pharma
Orally bioavailable standardized botanical derivatives in sport nutrition: special focus on recovery in post-intense physical activities
Indena
Collagen in motion: move freely and keep your injuries in check
Leading manufacturer of gelatine and collagen peptides
Life’s too short for slow proteins. Whey proteins hydrolysates: Fast delivery for enhanced performance
Arla Foods Ingredients
What it Takes to Compete and Win in Today’s Sports Nutrition Market
Capsugel
Sports Nutrition Snapshot: Key regional drivers and delivery format innovations
William Reed Business Media
Gutsy performance: How can microbiome modulation help athletes and weekend warriors
William Reed Business Media
Pushing the boundaries: Where’s the line between ‘cutting edge nutrition’ and doping
William Reed Business Media

On demand Supplier Webinars

High-amylose maize starch may reduce the risk of type 2 diabetes: what does this qualified health claim mean?
Ingredion
Balancing Innovation and Risk in Sports Nutrition Ingredients
NSF-International
Explaining bio-hacking: is there a marketing opportunity for food companies?
William Reed Business Media
Personalized Nutrition – how an industry can take part in shaping the future of Nutrition
BASF Nutrition & Health
Find out Nutritional and ingredient lifecycle solutions and strategies!
Roquette
Is the time rIpe for I-nutrition?
William Reed Business Media
The Advantage of Outsourcing Fermentation-based Manufacturing Processes
Evonik Health Care
All supplier webinars