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DSM reports Q1 2015 results

Heerlen, NL, 29 Apr 2015 07:15 CEST

  • Sales of €1,886 million, up 11%, including 2% organic sales growth
  • EBITDA up 4% to €248 million
  • Nutrition delivered good organic growth of 4%, driven by volumes in animal nutrition
  • Performance Materials continued to improve EBITDA through higher volumes and margins
  • Cash from continuing operating activities improved to €84 million (Q1 2014: €11 million)
  • Non-cash impairment of €130 million (after tax) related to the partnership for Polymer Intermediates and Composite Resins announced in March, leading to a net loss after exceptional items
  • Outlook 2015 updated for positive foreign exchange developments

Royal DSM, the Life Sciences and Materials Sciences company, today reported its results for Q1 2015. DSM reported sales of €1,886 million, an 11% increase versus Q1 2014, due to 3% higher volumes, 1% lower prices and 9% foreign exchange effects. DSM delivered an increased EBITDA of €248 million compared to €239 million in Q1 2014. The increase in operating working capital of €199 million to €2,102 million at the end of Q1 2015 was entirely due to the foreign exchange translation effect. Cash operating working capital remained flat, contrary to usual seasonality.

Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: “DSM delivered higher results in Q1 2015 compared to prior year, driven by higher volumes in both Nutrition and Performance Materials. Nutrition delivered mixed results with good volume growth in animal nutrition, partly offset by low prices in vitamin E and weak performance in human nutrition. Performance Materials had another strong quarter with higher volumes and margins. The mix of foreign currencies had an overall positive impact on both clusters.

In Q1 we announced a partnership with CVC Capital Partners for Polymer Intermediates and Composite Resins, a significant step in further optimizing our portfolio and reducing our cyclicality. This strategic action will enable us to focus fully on improving the operational performance of our core businesses while capitalizing on the longer term potential for value creation of our various partnerships.

We are progressing well with setting up a number of efficiency improvement and cost reduction programs especially in Nutrition and in all support functions across the company.

DSM aims to deliver an EBITDA in 2015 ahead of 2014, the increase mainly driven by positive foreign exchange effects.”