- Email: [email protected]
Unilever poaches new chief from Nestlé in break with tradition
F O C US normal operations from 1-4% to 46%. Novozymes Financial Statement 1H 2008, 14 Aug 2008, & The Zymes (Novozymes’ Shareholder Magazine), Sep 2008, (2), 4-5 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark. Tel: +45 8824 9999. Fax: +45 8824 9998. E-mail: [email protected]. Website: http://www.novozymes.com) & Dagbladet Borsen, 14 Aug 2008, (Website: http://www.borsen.dk) (in Danish)
Danisco 1Q 2008-2009: Genencor For its 1Q FY 2008-2009 (period ends 31 Jul 2008), the Genencor division of Danisco A/S has reported revenue of DKR 966 M (DKR 901 for its 1Q FY 2008-2008), EBITDA of DKR 166 M (DKR 208 M) and EBIT of DKR 112 M (DKR 155 M). The division posted strong top-line growth in the quarter, driven especially by good volumes. Organic growth came in at 13%, thereby exceeding the company’s long-term growth target for the segment, and was fairly broad-based in terms of geography, albeit with particularly good demand in the developed markets. Feed enzymes and enzymes for bioethanol performed particularly strongly. However, the Fabric & Household Care (F&HC) segment recorded a decline in organic top-line growth. There was an acceleration of the shift among several key accounts towards the less-specialized, value segments of the protease market, with healthy volume increases due to increased enzyme usage failing to fully compensate for lower average prices. The mix trend had a negative effect on Genencor’s margins within this business area, and the company does not expect this trend to revert in the immediate future. Meanwhile, the company says it is further scaling up efforts to strengthen the F&HC portfolio. In absolute terms, Genencor’s EBIT was slightly below expectations. Increased R&D spend made a negative contribution to the margin. Meanwhile, the sharp revenue increase in feed versus the lack of progress in F&HC also had a negative product mix impact on Genencor’s EBIT margin, which came in at 12.2% against 17.2% last year. Danisco Announcement of Results 1Q 2008-2009 (1 May 2008-31 Jul 2008), 18 Sep 2008, 11-12 (Danisco A/S, Langebrogade 1, PO Box 17, DK-1001 Copenhagen K, Denmark. Tel: +45 3266 2000. Fax: +45 3266 2175. Website: http://www.danisco.com)
NOVEMBER 2008
O N
S U R FAC TA N T S
COMPANY NEWS Unilever poaches new chief from Nestlé in break with tradition The soaps-to-detergents giant Unilever has broken with tradition and hired an outsider as chief executive for the first time in its 78-year history. The surprise appointment of the 52-year-old Dutchman Paul Polman, who has spent most of his working life at Unilever’s arch-rival Procter & Gamble, was welcomed by the stock market on 4 Sep 2008. But the decision to replace the retiring chief executive Patrick Cescau, 59, with someone not steeped in the Unilever culture could produce shockwaves of unease inside the organization. Four internal executives tipped for the top job will be forced to consider their own future. Polman, who for the past two years has been finance chief at Nestlé, will earn a basic £920,000/y, but this could rise to £3.5 M if he meets performance targets. Inevitably his arrival at Unilever in Oct 2008 to work alongside Cescau until he takes over in Jan 2009 will place a question-mark over the prospects of other executives who threw their hats into the ring when it was known that Cescau was planning to quit. Analysts say four names were fancied: the finance director, Jim Lawrence; Mike Polk, who runs the US operations; Harish Manwani, who runs operations in Asia, Africa and eastern Europe; and Vindi Banga, president for foods, home and personal care. But for now, rivalries may be put aside as Unilever grapples with a number of issues facing the business as it endeavours to drive growth in developing and emerging countries. The group was forced to raise prices sharply in the second quarter to counter rising commodity prices. But the controversial move depressed sales and sent the shares tumbling. One analyst said the group is facing “extraordinarily challenging conditions”. There has also been concern that Unilever has been cutting back on the amount it spends on promotions and marketing while rivals such as Danone, Cadbury and Reckitt Benckiser were either maintaining current levels of spending or increasing them. One major issue to
confront Polman is whether Unilever would gain by being split in two with food – embracing brands such as Hellmann’s, Walls and Flora – hived off from personal care products such as Dove soap. The Independent, 5 Sep 2008, (Website: http://www.independent.co.uk)
Warwick is sold to management team Warwick International, a chemical manufacturer and niche chemical distributor based in Mostyn, UK, has been acquired from Sequa Corp in a management buyout in a deal worth approximately $230 M (£129 M). The British firm Close Brothers Private Equity partly financed the deal. A banking consortium, led by the Royal Bank of Scotland, provided senior debt, mezzanine and working capital facilities for the transaction. Warwick manufactures tetraacetylethylenediamine (TAED), used in making dishwashing and laundry detergents, as well as peroxygen bleach activators. Warwick generates sales of more than $320 M/y. Sequa was itself acquired last year by US private equity firm The Carlyle Group [Focus on Surfactants, Sep 2007]. Chemical and Engineering News, 8 Sep 2008, 86 (36), 21 (Website: http://www.cen-online.org) & Chemical Week, 8 Sep 2008, (Website: http://www.chemweek.com)
Bochemie buys nearly 100% of EVM Chemical company Bochemie (Bohumin, Czech Republic) bought nearly 100% of the Hungarian detergents firm EVM from Eurovalue in mid 2008. The acquisition is the first step within the expansion planned by Bochemie’s current owner, the investment company Benson Oak Capital. EVM has a stock capital of about CEK 84 M. In 2006, the last year for which data is available, the company saw a turnover of nearly CEK 500 M. Apart from Hungary, Bochemie plans to expand throughout the whole of the region, spreading from Germany to Bulgaria. The firm saw sales of CEK 634 M for 1H 2008, on the same level as for 1H 2007. Exports represent more than 65% of the firm’s turnover worth CEK 1.3 bn/y. The firm, one of the largest detergent producers in the Czech Republic and Slovakia, owns the trade mark Savo. Hospodarske Noviny, 3 Sep 2008, 52 (173), 18 & 16 Jul 2008, 52 (138), 14 (in Czech)
7
Danisco 1Q 2008-2009: Genencor For its 1Q FY 2008-2009 (period ends 31 Jul 2008), the Genencor division of Danisco A/S has reported revenue of DKR 966 M (DKR 901 for its 1Q FY 2008-2008), EBITDA of DKR 166 M (DKR 208 M) and EBIT of DKR 112 M (DKR 155 M). The division posted strong top-line growth in the quarter, driven especially by good volumes. Organic growth came in at 13%, thereby exceeding the company’s long-term growth target for the segment, and was fairly broad-based in terms of geography, albeit with particularly good demand in the developed markets. Feed enzymes and enzymes for bioethanol performed particularly strongly. However, the Fabric & Household Care (F&HC) segment recorded a decline in organic top-line growth. There was an acceleration of the shift among several key accounts towards the less-specialized, value segments of the protease market, with healthy volume increases due to increased enzyme usage failing to fully compensate for lower average prices. The mix trend had a negative effect on Genencor’s margins within this business area, and the company does not expect this trend to revert in the immediate future. Meanwhile, the company says it is further scaling up efforts to strengthen the F&HC portfolio. In absolute terms, Genencor’s EBIT was slightly below expectations. Increased R&D spend made a negative contribution to the margin. Meanwhile, the sharp revenue increase in feed versus the lack of progress in F&HC also had a negative product mix impact on Genencor’s EBIT margin, which came in at 12.2% against 17.2% last year. Danisco Announcement of Results 1Q 2008-2009 (1 May 2008-31 Jul 2008), 18 Sep 2008, 11-12 (Danisco A/S, Langebrogade 1, PO Box 17, DK-1001 Copenhagen K, Denmark. Tel: +45 3266 2000. Fax: +45 3266 2175. Website: http://www.danisco.com)
NOVEMBER 2008
O N
S U R FAC TA N T S
COMPANY NEWS Unilever poaches new chief from Nestlé in break with tradition The soaps-to-detergents giant Unilever has broken with tradition and hired an outsider as chief executive for the first time in its 78-year history. The surprise appointment of the 52-year-old Dutchman Paul Polman, who has spent most of his working life at Unilever’s arch-rival Procter & Gamble, was welcomed by the stock market on 4 Sep 2008. But the decision to replace the retiring chief executive Patrick Cescau, 59, with someone not steeped in the Unilever culture could produce shockwaves of unease inside the organization. Four internal executives tipped for the top job will be forced to consider their own future. Polman, who for the past two years has been finance chief at Nestlé, will earn a basic £920,000/y, but this could rise to £3.5 M if he meets performance targets. Inevitably his arrival at Unilever in Oct 2008 to work alongside Cescau until he takes over in Jan 2009 will place a question-mark over the prospects of other executives who threw their hats into the ring when it was known that Cescau was planning to quit. Analysts say four names were fancied: the finance director, Jim Lawrence; Mike Polk, who runs the US operations; Harish Manwani, who runs operations in Asia, Africa and eastern Europe; and Vindi Banga, president for foods, home and personal care. But for now, rivalries may be put aside as Unilever grapples with a number of issues facing the business as it endeavours to drive growth in developing and emerging countries. The group was forced to raise prices sharply in the second quarter to counter rising commodity prices. But the controversial move depressed sales and sent the shares tumbling. One analyst said the group is facing “extraordinarily challenging conditions”. There has also been concern that Unilever has been cutting back on the amount it spends on promotions and marketing while rivals such as Danone, Cadbury and Reckitt Benckiser were either maintaining current levels of spending or increasing them. One major issue to
confront Polman is whether Unilever would gain by being split in two with food – embracing brands such as Hellmann’s, Walls and Flora – hived off from personal care products such as Dove soap. The Independent, 5 Sep 2008, (Website: http://www.independent.co.uk)
Warwick is sold to management team Warwick International, a chemical manufacturer and niche chemical distributor based in Mostyn, UK, has been acquired from Sequa Corp in a management buyout in a deal worth approximately $230 M (£129 M). The British firm Close Brothers Private Equity partly financed the deal. A banking consortium, led by the Royal Bank of Scotland, provided senior debt, mezzanine and working capital facilities for the transaction. Warwick manufactures tetraacetylethylenediamine (TAED), used in making dishwashing and laundry detergents, as well as peroxygen bleach activators. Warwick generates sales of more than $320 M/y. Sequa was itself acquired last year by US private equity firm The Carlyle Group [Focus on Surfactants, Sep 2007]. Chemical and Engineering News, 8 Sep 2008, 86 (36), 21 (Website: http://www.cen-online.org) & Chemical Week, 8 Sep 2008, (Website: http://www.chemweek.com)
Bochemie buys nearly 100% of EVM Chemical company Bochemie (Bohumin, Czech Republic) bought nearly 100% of the Hungarian detergents firm EVM from Eurovalue in mid 2008. The acquisition is the first step within the expansion planned by Bochemie’s current owner, the investment company Benson Oak Capital. EVM has a stock capital of about CEK 84 M. In 2006, the last year for which data is available, the company saw a turnover of nearly CEK 500 M. Apart from Hungary, Bochemie plans to expand throughout the whole of the region, spreading from Germany to Bulgaria. The firm saw sales of CEK 634 M for 1H 2008, on the same level as for 1H 2007. Exports represent more than 65% of the firm’s turnover worth CEK 1.3 bn/y. The firm, one of the largest detergent producers in the Czech Republic and Slovakia, owns the trade mark Savo. Hospodarske Noviny, 3 Sep 2008, 52 (173), 18 & 16 Jul 2008, 52 (138), 14 (in Czech)
7