Cognis recorded double-digit sales growth of 10.6% to €728m, mainly due to a pickup in business conditions leading to a recovery of sales volumes across all business units (plus 14.2%). Cognis also achieved a strong operating result (adjusted Ebitda) of €131m, which increased significantly by 79.6% compared to the first quarter of 2009. As a result, return on sales (adjusted Ebitda as a percentage of sales) improved by 6.9 percentage points to 17.9%.
Net profit for the period also increased significantly, reaching €47m compared to a net loss of €33m in Q1 2009. Cognis’ free cash flow generation was €40m despite the increased business activity and therefore necessary seasonal investments in trade working capital for the first quarter of 2010.
Nutrition & Health saw its sales increase by 5.2% to €88m and its adjusted Ebitda increased by 29.5% to €19m.
Functional Products performed especially well, with adjusted Ebitda increasing by 129.4% to €39m and achieved sales of €229m, representing an increase of 14.1%.
“We’ve had an excellent start in 2010,” said Cognis CEO Antonio Trius. “The positive development across all our business units and regions reflects our excellent position focusing on the wellness and sustainability trends. The excellent operating results contributed to a strong adjusted Ebitda of €422m over the last 12-month period. We expect to further improve our business performance in 2010 by providing added value to the customer through our innovative portfolio of ‘green’ products.”
Cognis will publish detailed figures on the first-quarter performance in its quarterly report, due for release 26 May 2010.
Source: Cognis
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