One-off costs have caused profits at ingredients group CSM to fall in 2012, but sales growth and better-than-expected underlying earnings saw the firm’s share price jump following its results announcement.
CSM’s share price rose by 4% in early trading today (29 January), after it reported EBITA up by 34% in the final quarter of its fiscal year, to the end of December. EBITA was EUR36.8m (US$49.5m) for the three-month period.
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Over the whole year, however, EBITA fell by 4.4% versus 2011, to EUR124.4m. Profits were dented by one-off costs related to the ongoing attempted sale of the group’s bakery supplies business and investment in its food preservation and bioplastics arm, Purac.
At the top-line, CSM said that net sales for both the year and the fourth quarter rose by 6.5%, to EUR3.3bn and EUR854.7m respectively. However, currency exchange flattered the performance, with organic sales up by 0.4% for the full-year and price rises offsetting a decline in volume sales.
There was little update on the Netherlands-based firm’s planned sale of its bakery supplies business.
“The strategic transformation of CSM is progressing in-line with expectations,” the firm said, adding that it has significantly reduced net debt over the past 12 months.
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By GlobalData
