Business Review
At a glance
- Sales increase of 25.2% mainly driven by higher prices
- EBIT before special items 24.3% higher due to considerable earnings growth in the Care Chemicals division
Sales to third parties in the Nutrition & Care segment rose by €1,624 million to €8,066 million in 2022. This was primarily attributable to the Care Chemicals division, which recorded sales growth of €1,180 million to €5,619 million. In the Nutrition & Health division, sales rose by €444 million to €2,447 million.
|
Nutrition & Care |
Care Chemicals |
Nutrition & Health |
|---|---|---|---|
Volumes |
–1.4% |
–4.1% |
4.7% |
Prices |
23.3% |
27.9% |
13.1% |
Portfolio |
–1.2% |
–1.2% |
–1.3% |
Currencies |
4.5% |
4.0% |
5.7% |
Sales |
25.2% |
26.6% |
22.2% |
The segment’s positive sales performance was mainly due to higher prices in all business areas, primarily resulting from cost increases for raw materials and energy.
Positive currency effects, largely relating to the U.S. dollar and the Chinese renminbi, had a positive impact on sales.
Volumes were slightly lower overall, dampening the segment’s sales performance. This was driven by the decline in volumes in the Care Chemicals division. Here, higher volumes in the personal care solutions business only partially compensated for the volumes decrease in the remaining business areas. The Nutrition & Health division increased volumes, especially in the animal nutrition and pharmaceutical business areas. Lower volumes in the aroma ingredients business had an offsetting effect.
Portfolio effects from the sale of the production site in Kankakee, Illinois, as of May 31, 2021, had a negative impact on sales in both operating divisions.
|
|
2022 |
2021 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
8,066 |
6,442 |
25.2% |
||||||||||
of which Care Chemicals |
|
5,619 |
4,439 |
26.6% |
||||||||||
Nutrition & Health |
|
2,447 |
2,003 |
22.2% |
||||||||||
Intersegment transfers |
|
588 |
491 |
19.8% |
||||||||||
Sales including transfers |
|
8,654 |
6,933 |
24.8% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
1,067 |
909 |
17.4% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
1,055 |
967 |
9.1% |
||||||||||
EBITDA margin |
% |
13.1 |
15.0 |
− |
||||||||||
Depreciation and amortizationa |
|
450 |
413 |
8.8% |
||||||||||
Income from operations (EBIT) |
|
605 |
554 |
9.3% |
||||||||||
Special items |
|
–13 |
57 |
. |
||||||||||
EBIT before special items |
|
618 |
497 |
24.3% |
||||||||||
Return on capital employed (ROCE) |
% |
7.5 |
8.2 |
− |
||||||||||
Assets |
|
8,038 |
7,231 |
11.2% |
||||||||||
Investments including acquisitionsb |
|
642 |
654 |
–1.8% |
||||||||||
Research and development expenses |
|
172 |
172 |
–0.3% |
||||||||||
|
||||||||||||||
Nutrition & Care – sales
By division
Income from operations (EBIT) before special items rose by €121 million to €618 million year on year. This was due to the strong increase in earnings in the Care Chemicals division, mainly from price-driven margin growth. Higher fixed costs, largely as a result of inflation and currency effects, was an offsetting factor. By contrast, EBIT before special items in the Nutrition & Health division was considerably below the prior-year level. This was primarily attributable to higher costs, largely from increased energy costs and turnarounds.
EBIT rose by €52 million compared with the previous year to €605 million. It included special charges for the restructuring of the Nutrition & Health division and for the discontinuation of our business activities in Russia. In the previous year, EBIT included special income from the sale of the production site in Kankakee, Illinois.
Divisions |
Europe |
North America |
Asia Pacific |
South America, Africa, Middle East |
Total (million €) |
|---|---|---|---|---|---|
Care Chemicals |
53% |
18% |
20% |
9% |
5,619 |
Nutrition & Health |
37% |
19% |
33% |
11% |
2,447 |