Cognis Reports Fiscal 2007
Posted: April 17, 2008
Cognis reported that it increased its net external sales by 4.3% in 2007 to €3,518 million. Organic sales growth (excluding foreign currency effects and the effects of acquisitions and divestments) stood at 6.5%. All three of the company’s core business areas—Cognis Care Chemicals, Nutrition & Health, and Functional Products—reported substantial increases in sales and contributed to this growth.
Cognis’ net profit before special items rose by €28 million to €30 million. These special items turned the net profit into a net loss of €120 million. The reasons, according to the company, are depreciation of financing fees relating to the refinancing transactions before 2007, revaluation of deferred tax assets due to the tax corporate reform in Germany, depreciation of certain assets and expenses for a current cost optimization project.
“Our sales figures for 2007 prove that our strategy in being committed to the wellness and sustainability trends significantly enhances the value of our company,” said Antonio Trius, CEO, Cognis. “We achieved these good results despite various extraordinary challenges in 2007, such as a massive rise in raw material costs and a weak U.S. dollar. Furthermore, we were able to conduct a successful refinancing and completed the carve-out of Pulcra Chemicals—two important strategic steps towards ensuring the long-term competitiveness of Cognis.
“In 2008, we will focus even more on our three core business areas and continue to optimize our operations and processes to equip ourselves for the market challenges that lie ahead. As one example, we established a company-wide cost optimization program. Cognis will continue to develop highly innovative solutions and strengthen its portfolio of natural-source products, creating the basis for further success in the global growth markets of wellness and sustainability.”
For sales by business unit and the complete report, click here