Cognis happy with business development during first six months

21 Aug '06

3 min read

The global specialty chemicals supplier Cognis reports net external sales of 1,715 million euros for the six months to June 30, 2006, a 7.0 percent increase compared to the same period in 2005.

Adjusted EBITDA (earnings before net financial result, income taxes, depreciation, amortization and exceptional items) also grew by 7.0 percent to 214 million euros, and the company's overall profit margin was 12.5 percent.

Furthermore, the company announces that the process of reviewing the strategic options for Cognis has now been completed: The shareholders decided to continue their investment for the next couple of years.

The Strategic Business Units (SBUs) Care Chemicals, Nutrition & Health, Functional Products, and Process Chemicals all posted sales that exceeded the 2005 figures, while Oleochemicals' sales remained stable.

All regions contributed to this positive development. The growth in the company's Adjusted EBITDA reflects this improvement in sales, and also the fact that despite increased raw material and energy costs, the company has been able to reduce its overall costs by further improving operational efficiency.

Adjusted for the effects of currency fluctuations, sales increased by 4.5 percent and Adjusted EBITDA by 5.5 percent. Comments Antonio Trius, CEO of Cognis: “We are satisfied with the business's development over the first six months. Our innovative product offering and branded ingredients have made a particular contribution to achieving this result.”

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