MONHEIM, Germany—In the first nine months of 2009, Cognis saw its sales volumes fall by 11.8 percent compared with the same period in 2008. Compared to the first nine months of 2008, the total net external sales figure of 1,957 million euros represents a fall of 15 percent, with the highest decrease in Europe. However, in comparison with the second quarter 2009, global sales volumes increased by 5.1 percent in the third quarter. This indicates a continuation of the upward trend Cognis has observed since the second quarter.
Sales of Nutrition & Health decreased by 6.8 percent to 247 million euros due to the economic downturn especially in Europe and in particular in the dietary supplements market. Sales in Functional Products were 591 million euros, representing a fall of 18.9 percent. The business unit saw its sales decrease due to lower demand. However, compared to the second quarter of 2009, sales volumes stabilized in the third quarter.
On the bright side, Cognis’ operating result increased by 6 million euros to 270 million euros compared to the same period in 2008 (up 2.1 percent). Return on sales increased by 2.3 percentage points to 13.8 percent. The 2009 third-quarter operating result of 102 million euros was up by 7 million euros (7.8 percent) on the second-quarter figure of 95 million euros. Compared to the third quarter of last year, the increase was even 14 million euros or 15.7 percent.
This positive development was mainly attributable to Cognis’ innovative product portfolio with a favorable product mix and effective cost management, which compensated for a downward trend of selling prices. Thanks to a comprehensive cost optimization program, the company achieved savings of approximately 79 million euros in the first nine months of 2009.
“Our innovative product portfolio has shown itself to be highly resilient to the effects of the crisis. In the face of this year’s challenging economic environment, our wellness and sustainability-based strategy has proven itself as one of the strongest drivers of success for all our businesses,” said Cognis CEO Antonio Trius. “In addition the significant savings achieved through our global cost optimization program enabled us to improve our operating result. Sales volumes are still relatively low, but they continue to move in an upward direction.”
