MONHEIM, Germany— Cognis continued to feel the impact of the global recession, with sales down for the first half of 2009 by 15.8 percent compared to the same period in 2008; total net sales of € 1.302 million were down 15.1 percent compared to the first half of 2008. However, the second quarter did show strength, with sales volume up 3.8 percent in 2Q09 compared to 1Q09.
Similar results were seen in operating results (adjusted EBITDA), which was down 4.7 percent for the first half of 2009, compared to 2008; 2Q09 operating results of €95 million were up €22.1 million compared to total 1Q09 operating income of €73 million. Cognis countered down sales volume by taking advantage of lower raw material costs and cost optimization measures.
Cognis also took steps to strengthen its operating position, further buying back PIK loans and cutting its net debt by €296 million compared to June 30, 2008. Cognis CEO Antonio Trius commented, “We are now benefiting from our comprehensive cost reduction program and in the light of the challenging economic environment this year, we are satisfied with what we have achieved so far. Both sales volumes and operating results are moving in an upward direction compared to the first quarter of 2009, and our wellness and sustainability-based strategy remains a strong driver of growth for our business.”
Sales in the Care Chemicals business unit were down 15.3 percent, although the personal care segment showed strong growth in the evolving Asia-Pacific and Central and South America markets. Similarly, the Nutrition & Health unit saw a sales decline of 8.0 percent to €167 million; however, sales of plant sterols and in the healthcare business were stable. The greatest sales decline was seen in the Functional Products unit, which dropped 17.1 percent for the first half of 2009 compared to 2008; however, sales volumes were up 5 percent in 2Q09 compared to 1Q09.