Press release

DSM reports robust Q2 in challenging environment

Heerlen, NL, 07 Aug 2012 07:15 CEST

  • Q2 EBITDA from continuing operations €290 million (Q2 2011: €339 million)
  • Life Sciences continues to deliver robust performance, driven by Nutrition
  • Materials Sciences improved, except for caprolactam which had an EBITDA impact of - €70 million
  • Q2 cash flow from operating activities at €197 million, higher than comparable and prior quarter
  • Profit Improvement Program announced: expected annual EBITDA benefits of €150 million by 2014
  • Interim dividend of €0.48 declared, in line with DSM’s dividend policy
  • Outlook 2012 largely unchanged with the exception of caprolactam

Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: “Despite the challenging macro-economic environment, I am pleased that DSM was able to deliver another robust set of results demonstrating the strength of our strategy, as evidenced by the ongoing strong performance of Nutrition. Our Life Sciences clusters accounted for around 70% of Q2 EBITDA. This strength has helped to offset the weakness caused by caprolactam in Materials Sciences. The other Materials Sciences businesses improved despite a challenging macro-economic environment.

“The global outlook for the second half of the year is more uncertain due in part to Europe’s inability to find an effective and sustainable solution to the financial challenges facing the Eurozone. Because of the increased economic uncertainty, we are announcing today a Profit Improvement Program that includes structural cost reduction and other initiatives that will generate €150 million EBITDA benefits by 2014.

“While we remain cautious on the macro-economic outlook for the rest of the year, the robustness of our portfolio reinforces our confidence that DSM’s strategic focus is the right one. As evidenced by the recent Kensey Nash and Ocean Nutrition Canada acquisitions, we continue to deliver on our strategy by investing in new, exciting growth opportunities. We are confident that the Profit Improvement Program, together with our broad geographic spread with a significant presence in high growth economies and our very strong balance sheet, leaves us well placed to face the near term challenges. We continue to execute our strategy to achieve stronger, more stable growth and profitability for DSM overall also based on our sustainable innovative solutions addressing the key global trends."

Key figures

Q2 2012Q2 2011+/-in € millionH1 2012H1 2011+/-
   Continuing operations   
2,2682,2650%Net sales4,5584,4991%
290339-14%Operating profit before depreciation & amortization (EBITDA)596644-10%
195193 Nutrition387366 
1712 Pharma2212 
7782 Performance Materials156173 
3093 Polymer Intermediates99192 
-10-13 Innovation Center-25-26 
-19-28 Corporate Activities-43-53 
168238-29%Operating profit (EBIT)368469-22%
   Discontinued operations   
 34 Net sales 145 
 6 Operating profit before depreciation & amortization (EBITDA) 29 
 6 Operating profit (EBIT) 29 
   Total DSM   
2,2682,299-1%Net sales4,5584,644-2%
290345-16%Operating profit before depreciation & amortization (EBITDA)596693-14%
114166-31%Net profit before exceptional items259338-23%
-73226 Net result from exceptional items-73220 
41392-90%Net profit186558-67%
   Net profit per share in €:   
0.670.97-31%before exceptional items, continuing operations1.541.88-18%
0.232.35-90%including exceptional items, total DSM1.13.33-67%

You can find the press release in full, including financial statements, below.

For more information

Lieke de Jong-Tops

Senior Communications Manager
+31 45 578 2420

Dave Huizing

Vice President Investor Relations
+31 45 578 2864

Media Relations

+31 45 578 2420

Investor Relations

+31 45 578 2864