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.