Martek is star performer in DSM's nutrition division in Q3

By Elaine Watson

- Last updated on GMT

Related tags Essential fatty acid Fatty acid Nutrition Martek

Martek is star performer in DSM's nutrition division in Q3
Martek “clearly exceeded expectations” in the third quarter for new owner DSM within a nutrition division that continued to deliver “robust” results despite the negative impact of currency translation.

DSM, which recently combined Martek’s algal omega-3 and omega-6 products with its own polyunsaturated fatty acid (PUFA) portfolio in a new business called Nutritional Lipids, said its nutrition division “continued to deliver year-on-year profit growth despite the strength of the Swiss franc”.

Martek integration successfully completed

It added: “Martek once again delivered an excellent performance that clearly exceeded expectations… with sales of €84m and EBITDA​ [earnings before interest, tax, depreciation and amortization] of €26m. The integration of Martek has been successfully completed.

“Nutrition division sales in Q3 2011 increased by 16%​ [to €868m] over the same period last year due to a steady organic sales growth of 8%, reflecting the strong volumes in animal nutrition and health, and the Martek acquisition."

Nutrition division full-year profit expected to be 'clearly above' 2010 level

The outlook for the nutrition division was also positive, said the firm: “The nutrition cluster is expected to maintain its resilient performance through firm pricing and continued volume growth.

“At the current exchange rate the Swiss franc is estimated to have a negative impact of between €10m and €15m net of hedges in Q4 2011 compared to last year. Including Martek, full year EBITDA for the cluster is expected to be clearly above last year's level.”

In a presentation accompanying the group's Q3 results, the firm revealed that its nutrition division acounted for 54% of group profits in 2010 compared with 30% in 2007.

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