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In DSM Food Specialties’ first half-year results, the company’s Nutrition segment delivered a steady performance in light of the Covid-19 pandemic. Pushed up demand in this context was driven in part by stocking – especially packaged foods in food and beverage and early life nutrition – while the company notes end user demand for immunity-optimizing products remained strong. DSM outlines adjusted net profit down by 4 % to EUR 399 m, with net profit at EUR 270 m.

DSM’s Nutrition segment delivered robust organic sales growth of 9 %, including an up to 2 % Covid-19 effect, with 11 % growth in Human Nutrition, which saw additional Covid-19 driven demand across all end markets. By the end of the quarter, Human Nutrition saw more normalized trading conditions.

Once again this year, during Fi Europe co-located with Hi Europe at the beginning of December, show organizer Informa Markets will be recognizing companies and organizations for ground-breaking novelties in the Fi Europe Innovation Awards. These awards are regarded as the most prestigious in the food and beverage sector and honour innovators in nine categories based on the latest industry trends.

The Fi Global Startup Innovation Challenge gives newcomers the opportunity to present their ideas to a broad professional audience. Entries for the Startup Innovation Challenge are open until 18 September, and, for the awards, until 25 September 2020.

A jury of industry experts, including company representatives, market analysts and trade journalists, will select the finalists for the Fi Europe Innovation Award. Those shortlisted will pitch to the eight-member jury led by Prof. Dr Colin Dennis, Chairman of the Board of Trustees of the British Nutrition Foundation (BNF).

The Nestlé Group achieved sales of CHF 41.152 bn in the first half of 2020. Organic growth reached 2.8%, with real internal growth (RIG) of 2.6%. Pricing contributed 0.2% and was positive in all three zones in the second quarter. According to the company, underlying trading operating profit decreased by 7.9% to CHF 7.156 bn. The underlying trading operating profit margin reached 17.4%, an increase of 30 basis points in constant currency and on a reported basis.

The Covid-19 crisis has led to profound changes in operating environments across markets. The global economy has entered a recession, supply chains have been tested and consumer behaviour has changed at a rapid pace. Nestlé quickly deployed effective measures to address this new reality. In the first half, the effects of Covid-19 on organic growth varied materially by geography, product category and sales channel, depending on the timing of outbreaks, scope of restrictions and consumer behaviour.

After a stronger-than-expected start to the year, organic growth moderated in the second quarter to 1.3%, reflecting the severe impact of movement restrictions on out-of-home businesses and some consumer destocking. In the first half, Nestlé saw sustained momentum in the Americas and positive sales development in Zone EMENA. Zone AOA saw a sales decrease, with growth turning positive in the second quarter. Organic growth was 4.1% in developed markets, based entirely on RIG. Growth in emerging markets was 1.1%. Nestlé achieved sales of CHF 2.973 bn in the product category confectionery, compared to CHF 3.450 bn in the first half of 2019.

The Hershey Company announced net sales and earnings for the second quarter ended June 28, 2020. Consolidated net sales were USD 1.707 bn in the second quarter of 2020 versus USD 1.767 bn in the year ago period, a decrease of 3.4%. According to the company, volume was a 7.0 point headwind, driven by Covid-19 pressures in the company’s International and Other segment and price elasticity in North America. Foreign currency exchange was a 0.7 point headwind. Price realization partially offset these declines, providing 3.5 points of net benefit for the second quarter. The net impact of acquisitions and divestitures was a 0.8 point benefit driven by the acquisition of ONE Brands.

Reported gross margin was 46.4% in the second quarter of 2020, compared to 49.5% in the second quarter of 2019, a decrease of 310 basis points. The decline reflects a higher derivative mark-to-market commodity gain in the prior period. Adjusted gross margin was 46.4% in the second quarter of 2020, compared to 46.5% in the second quarter of 2019, a decrease of 10 basis points as price realization gains were more than offset by incremental Covid-19 manufacturing costs and unfavourable mix.

Second-quarter 2020 reported operating profit of USD 383.4 m decreased 6.5% versus the second quarter of 2019, resulting in an operating profit margin of 22.5%, a decrease of 70 basis points. Adjusted operating profit of USD 386.1 m increased 4.4% versus the second quarter of 2019. This resulted in an adjusted operating profit margin of 22.6%, an increase of 170 basis points versus the second quarter of 2019 as strong corporate and operational cost management more than offset incremental Covid-19 costs.

Mondelez International, Inc. reported its second quarter 2020 results. According to the company, net revenues decreased 2.5% to USD 5.911 bn driven by unfavourable currency and the impact of a prior-year divestiture, with underlying organic net revenue growth of 0.7% and the positive impact of acquisitions. As a result of Covid-19, the Developed Markets organic net revenue growth rate was elevated versus pre-Covid levels. Organic net revenue from Emerging Markets declined but showed sequential improvement during the quarter and returned to growth in June.

Gross profit decreased USD 138 m to USD 2.331 bn and margin declined 130 basis points to 39.4%. Adjusted gross profit decreased USD 9 m to USD 2.347 bn at constant currency while adjusted growth profit margin decreased 90 basis points to 39.7% primarily due to incremental Covid-19 related costs, higher raw material costs in part due to unfavourable currency movements and unfavourable volume/mix, partially offset by higher net pricing and productivity, as well as cost containment measures.

Operating income decreased USD 312 m to USD 713 m and margin was 12.1%, down 480 basis points. Adjusted operating income decreased USD 38 m to USD 942 m at constant currency, and margin decreased 80 basis points to 15.9%.

FrieslandCampina has reported a strong start of the year with first-quarter results above last year, but in the second quarter it expects major impact from the Covid-19 pandemic on operations and results. Pressures were most notable due to a strong decline in out-of-home sales, lower basic dairy prices and a fall in infant nutrition sales in Hong Kong due to closed borders with China. This was partially offset by higher profit for consumer dairy and ingredients.

Revenue is stable (+0.3 %) at EUR 5.6 bn. However, on a comparable basis, operating profit is down 17.2 % and profit down 37.2 % versus the first half of 2019. Milk price for member dairy farmers decreased by 3.5 % to EUR 36.59 per 100 kg of milk due to a decline in basic dairy prices. Meanwhile, milk supply increased by 1.1 % to 5,144 m kg due to favourable weather conditions.

Global recession with an anticipated slow recovery necessitates further intervention in cost structure and structural improvement of productivity, notes FrieslandCampina. The company recently strengthened its market positions in ingredients worldwide and in key consumer markets such as China, Indonesia, Nigeria, Pakistan as well as its home markets of the Netherlands and Germany. The business groups Dairy Essentials and Ingredients saw revenue increase by 5.8 % and 3.6 %, respectively.