Royal DSM has set aside about €3 billion to spend on acquisitions to expand its nutrition business and maintain its profit growth, the company announced during its strategy update on Wednesday entitled “Growth & Value - Purpose led, Performance driven” at its Capital Markets Day in London. In the 2018 outlook, DSM reconfirmed it will position itself towards a Nutrition, Health and Sustainable Living company, “pursuing enhanced organic growth, with a purpose-led coherent set of business activities, with value-creating acquisitions predominantly in Nutrition.”

“Our Strategy 2015-18 has been highly successful. After transforming DSM over the period 2010-15, we delivered strong growth with greatly improved operational and financial performance and significant value creation in all our businesses,” comments Feike Sijbesma, CEO and Chairman at DSM.

“In addition, we took important steps to monetize our non-core Pharma and Bulk Chemicals joint ventures. DSM has become a growth company with ambitious sustainability efforts creating value for all stakeholders across the three dimensions of People, Planet and Profit,” he notes.

“We have created a strong platform for growth, centered on developing innovative solutions addressing Nutrition & Health, Climate & Energy and Resources & Circularity. Increased customer centricity and large innovation projects will enable above-market growth, while we will remain focused on cost control and operational excellence, allowing us to accelerate profit and cash generation. Organic growth will be complemented by acquisitions predominantly in Nutrition,” he says. “I am convinced that our strategy will create further significant value for all our stakeholders and the step-up in the dividend demonstrates our confidence in the future."

DSM's reports that its Nutrition business will focus on human nutrition (ingredients and solutions for Food & Beverages, as well as Specialty Nutrition, nutritional ingredients, consumer branded products and Personalized Nutrition), animal nutrition (covering all species with premix and specialty solutions) and personal care and aroma ingredients.

The company is seeking to enable sustainable solutions for its customers and advocating sustainable business, by improving the impact of its own operations which will help DSM grow faster and reduce its cost and risk profile.

DSM Food Specialties

Our aim is to help customers succeed in their markets through strong innovation, exceptional application expertise and insight into the many, ever-changing needs of consumers worldwide.

For food, beverage and supplement manufacturers we offer the comprehensive resources needed to provide customized solutions. Scientific excellence aside, that means a deep knowledge and understanding of markets, consumers and the defining trends in our industry. Namely:

A sharp focus on health benefits: Consumers across the world want to look and feel better. The empowerment and awareness of consumers from India to Indiana is a defining trend in food and beverage nutrition, which we meet through our family of nutritional ingredients and products.

Taste is a key qualifier: If a product doesn’t taste good it doesn’t stand much chance of success. As the world’s tastes and preferences evolve and expand, we are increasingly helping customers innovate, with exciting, authentic and regional flavors and ingredients provided in a streamlined and efficient way.

The drive for convenience: Despite the trend for health foods, time-pressed consumers are looking to buy more processed and convenience food than ever. DSM is committed to helping customers address the need for fast, high-quality products.

Food safety and quality: Our ingredients are based on solid scientific evidence and application knowledge based on decades of experience in our markets. We’re well aware that food safety and compliance is paramount for growing and ambitious food brands.