DSM to hike prices of its Fortitech Premixes by 10 percent
11 Sep 2017 --- DSM has announced that it will increase prices for Fortitech Premixes by an average of 10 percent across all regions with immediate effect. Existing contracts and commitments will not be affected, the company’s press release adds.
“These price increases are driven by prolonged price increases in a broad range of ingredients used for our Fortitech Premixes solutions,” Nelleke Barning, Global Communications and External Affairs Director Nutrition at DSM, tells NutritionInsight. “The composition of our customized tailored premixes is commercially sensitive information and thus we can't be more explicit.”
The company has added that since every Fortitech Premix is customized, the actual price increase will differ for each of the premixes. Fortitech Premixes are described by DSM as “customized, tailored blends of desired functional ingredients in one single, efficient, homogenous premix.”
DSM states that it continues to be active in health, nutrition and materials and says that it “delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.”
The company and its associated companies deliver annual net sales of about €10 billion (US$12 billion) with approximately 25,000 employees, DSM notes. It reported a very strong second quarter last month, with sales up 8 percent to €2,161m (US$2,559m) and 6 percent organic growth. The company's adjusted EBITDA is up 15 percent to €376m (US$445.3m). In the nutrition segment, the company has reported a 4 percent organic sales growth and its adjusted EBITDA is up 14 percent.
DSM also announced last month that it expects to deliver full-year 2017 results above the targets set out in its Strategy 2018, with an EBITDA growth for the year moving slightly up from high single-digit to double digit, and with a ROCE increase moving from double-digit basis points to over 100 basis points.
In company activity elsewhere, Weiguo Zhang, Director of Nutrition Science and Advocacy at DSM Nutritional Products, Human Nutrition & Science of Greater China, recently took part in a panel discussion on meeting the needs of the “silver consumer” chaired by The World of Food Ingredients Chief Editor Robin Wyers at Vitafoods Asia 2017.
By Paul Creasy
