DSM reports Q2 2015 results
- Solid sales performance with a 12% increase to €1,965 million, supported by foreign exchange rates and 3% volume growth
- EBITDA increase of 6% to €279 million
- Nutrition delivered good organic growth of 3%, driven by 5% volume growth
- Performance Materials showed strong EBITDA growth of 25%, benefiting from lower input costs and 2% volume growth
- Cash from continuing operating activities of €103 million
- Interim dividend of €0.55
- 2015 outlook maintained
Royal DSM, the Life Sciences and Materials Sciences company, today reported its results for Q2 2015. Sales were €1,965 million, a 12% increase versus Q2 2014, due to 3% higher volumes, 2% lower prices, 10% positive foreign exchange effects and 1% acquisition effects. DSM delivered a 6% higher EBITDA of €279 million compared to €264 million in Q2 2014. In the second quarter operating working capital remained stable versus Q1 2015.
DSM delivered improved results in Q2 driven by overall higher volumes and positive foreign exchange effects as well as margin expansion in Performance Materials. While Nutrition continues to be negatively impacted by lower vitamin E prices, volumes developed well in both animal and human nutrition. In animal nutrition volume growth would have been higher without the impact of a supply interruption of a key raw material due to a fire at the port of Santos (Brazil). Performance Materials had a strong quarter due to higher volumes, cost savings programs implemented over the recent years, positive foreign exchange effects and the temporary effect of significantly improved margins as a result of lower input costs.
Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: “I am pleased to report good progress in Q2 with a solid volume growth in Nutrition and a step-up in Performance Materials. The priority of improving our operational performance is starting to deliver results. With increasingly challenging macro-economic conditions we remain focused on further improving the operational performance of DSM’s businesses while making continued progress in innovation and sustainability. The setting-up of efficiency and cost reduction programs with a particular focus on the Nutrition business and the DSM-wide support functions is progressing well. We will announce the scope of the program for the DSM-wide support functions by the end of this month. More information on the efficiency and cost reduction programs for the Nutrition business will be shared at the Capital Markets Day on 4 November.
We maintain our full year outlook: DSM aims to deliver an EBITDA in 2015 ahead of 2014, the increase mainly driven by positive foreign exchange effects.”