Personal care helps drive strong Cognis performance
its latest six monthly results, which shows that its care chemicals
division is still by far the biggest division and continuing to
drive further growth.
The company said that total net external sales came in at €1.7bn for the six months up to June 2006, a jump of 7.0 per cent on the same period in 2005. Adjusted EBITDA also grew at 7.0 per cent to reach €214m.
Taking into consideration the effects of currency fluctuations, sales for the period were up 4.5 per cent, while EBITDA rose by 5.5 per cent.
The company said that all of its strategic business unit posted sales that exceeded 2005's results, with all geographical regions also contributing to the growth.
The jump in profits was attributed to the rise in sales and further operational efficiencies, which was enough to make up for the fact that raw material and energy costs had risen.
Antonio Trius, Cognis CEO, said "Our innovative product offering and branded ingredients have made a particular contribution to achieving this result."
Looking at the results for the company's Care Chemicals division, sales were up 6.0 per cent to reach €682m. The company said that the main drivers had been strong sales of surfactants and performance ingredients, with demand for what the company terms 'innovative concepts' also rising significantly.
"These innovative concepts encompass specialty ingredients, including actives and delivery systems," Cognis spokesperson Wulf Klüppelholz told CosmeticsDesign.com. "Under this area we are marketing concepts which offer our customers new solutions and ideas for their personal care formulations."
The company also reported that its fastest growing division was Functional Products, which grew 11.8 per cent to reach total sales of €431m. This was achieved from growth in all segments supplying the functional food and nutrition market.
In March of this year Cognis announced the expansion of its Care Chemicals division with the acquisition of UK polymer specialist Cosmetic Rheologies, a move that enhances its position as a full-range specialties supplier to the cosmetics industry.
