MONHEIM, Germany—Cognis proved its resilient operating performance in a challenging environment by reporting strong earnings and cash flow for fiscal year 2009. Net profit from continuing operations increased to 25 million euros, while earnings before interest and taxes (EBIT) increased to 195 million euros.
Due to the global economic crisis and the consequent weak demand in some end markets in the first half of 2009, sales volumes decreased by 7.8 percent compared to the previous year. Sales decreased by 13.9 percent to 2,584 million euros. In the second half of 2009, Cognis observed a continuing recovery in global demand—and as a result, in its own sales volumes—across most of its markets.
Operating cash flow in 2009 increased 488 million euros, due to strong operating performance and effective working capital management. Overall, Cognis’ cash position improved substantially to 324 million euros.
Nutrition & Health saw its sales decrease by 6.3 percent to 325 million euros in 2009, mainly due to weak consumer demand. Businesses serving the dietary supplements and food ingredients markets were particularly affected by the global downturn. However, the Pharma & Health business performed well and achieved significant sales growth, thanks in part to its successful acquisition of new customers. Nutrition & Health’s adjusted EBITDA fell by 17.9 percent to 54 million euros in 2009. This was mainly due to the lower sales, higher raw material costs, as well as negative one-time effects.
“Our strategy and the restructuring of our portfolio have really paid off during this time of crisis: amid the uncertainty of 2009, our business model and our new organizational structure with the three business units Care Chemicals, Nutrition & Health, and Functional Products have proven themselves highly resilient and agile,” said Cognis CEO Antonio Trius. “We reacted swiftly and decisively to the global downturn. Our portfolio of innovative products and concepts aligned with the wellness and sustainability trends, strengthened by the launch of about 50 new products, has enabled us to leverage our strong position in dynamic markets effectively. This, combined with our systematic efforts to improve efficiency and productivity, meant that we were able to improve our operating result despite the decrease in sales volumes seen last year.”
