Such volume growth was supported by customers increasing stock levels given widespread and ongoing supply chain concerns, it said.
The ruminant and poultry markets proved good growth drivers, and DSM said it benefited from swine herd recovery, post ASF outbreak, in China. The aquaculture market saw a rebound as well with the gradual reopening of food services; the Latin American market also performed in 2021, said the vitamin producer.
DSM reported a 7% hike in prices in Q4 2021, which, it said, off-set cost increases. “A sudden sharp increase in energy costs led to additional pricing actions for the contracts effective in 2022.”
Evaluating the performance of its recently acquired mycotoxin control and eubiotics business, Erber, the review showed it had a strong first year under DSM’s roof, with €328m in sales and total adjusted EBITA of €86m in 2021.
Veramaris, the 50/50 partnership that the company has with Evonik, and which produces fermentative algae-based omega-3 for feed applications, regained sales momentum in the second half of 2021 due to salmon industry recovery and the introduction of the product for shrimp farming, pet food and human nutrition.
The company also noted the positive developments last year for its methane inhibitor, Bovaer, with the product seeing regulatory approvals in Chile and Brazil, and subsequent market entry there, combined with a positive opinion for the additive from the European Food Safety Authority (EFSA), and the plan to realize large scale production of that product in Dalry, Scotland by 2025.
Outlook full year 2022
January this year saw DSM’s new health, nutrition, and bioscience (HNB) structure became effective. Its FY outlook for 2022 shows that it expects those activities to deliver a high-single digit adjusted EBITDA increase.
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs, commented: “2021 was a pivotal year for DSM and our people in which we accelerated our journey towards becoming a fully focused health, nutrition and bioscience company. In line with our purpose-led strategy, we took further significant climate action and set a more aggressive path toward net-zero.
“Both nutrition and materials realized strong results, as we continued to successfully navigate dynamic market conditions including global supply chain and logistics disruptions. We started to counter inflationary pressures in the second half of the year with appropriate pricing actions to offset cost increases, of which the first positive effects can be seen in the fourth quarter, with the remainder being effective as of 2022.
“We are well positioned going forward, with an exciting innovation portfolio of sustainability-focused solutions with considerable growth potential such as our methane-inhibiting livestock feed additive Bovaer. We have a positive outlook for 2022.”
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