Press release

DSM reports final 2013 results, increases dividend

Heerlen, NL, 26 Feb 2014 07:15 CET

  • 2013 FY EBITDA substantially up to €1,314 million (2012 FY: €1,109 million)
  • Q4 2013 EBITDA €316 million (Q4 2012: €243 million)
  • Strong cash generation from operating activities of €889 million in 2013 (2012: €730 million)
  • Dividend increase of 10% proposed to €1.65 per ordinary share (2012: €1.50)
  • Share repurchase program to hedge existing option plans continues
  • Target for 2014 to improve business performance to at least offset negative currency impact

Royal DSM, the Life Sciences and Materials Sciences company, today reported final, audited, results for 2013. These results confirm the preliminary, unaudited results DSM published on 21 January 2014. DSM today also issues its Integrated Annual Report.

For the full year 2013, DSM delivered 18% higher EBITDA, while facing a challenging economic environment. For Q4 the company realized 30% higher EBITDA.

In Q4 all clusters delivered a solid performance despite negative exchange rate effects. Nutrition was in addition impacted by a combination of unrelated market headwinds. These included weakness in dietary supplements and fish oil based Omega 3 markets in the US, soft demand in Western food & beverage markets, and price pressures especially in vitamin E following weak demand in animal feed markets earlier in the year. DSM previously signaled these adverse conditions, but the impact through the end of the year was more pronounced than anticipated.

Due to the transaction announced with JLL Partners, DSM Pharmaceutical Products has been classified as Asset held for Sale and discontinued operations.

Commenting on these results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said: “We achieved significant strategic progress in 2013, also demonstrated by an 18% increase in full year EBITDA and strong cash generation. We were pleased with the strong performance in Materials Sciences in Q4. Despite the moderate Q4 results in Nutrition, due to currencies and market weakness, DSM’s market positions remained strong. This business with its broad, global offering across the value chain is well positioned to benefit from the structural megatrends, with the need to nourish a growing and aging global population, living increasingly in urban areas, paying more attention to health and well-being. This will continue to drive increased demand for nutritional ingredients.

We remain firmly on track to deliver on our strategy and to create sustainable value with all our clusters. Therefore we propose a dividend increase of 10%. In the short term our focus will continue on the operational performance of our businesses, supported by our Profit Improvement Program and intensified R&D and innovation programs
.”

Key figures

Q4 2013 Q4 2012 +/- in € million volume price/mix exch. rates other
2,377 2,269 5% Net sales 6% -2% -3% 4%
1,038 923 12% Nutrition 4% -1% -4% 13%
45 46 -2% Pharma -4% 11% -9%  
659 655 1% Performance Materials 7% -2% -3% -1%
393 393 0% Polymer Intermediates 11% -9% -2%  
38 33 15% Innovation Center 21% -3% -3%  
46 68   Corporate Activities        
2,219 2,118 5% Total continuing operations 7% -3% -3% 4%
158 151 5% Discontinued operations 6% 1% -2%  
FY 2013 FY 2012 +/- in € million volume price/mix exch. rates other
9,618 9,131 5% Net sales 5% -3% -2% 5%
4,195 3,667 14% Nutrition 5% -3% -3% 15%
184 183 1% Pharma 0% 7% -6%  
2,746 2,772 -1% Performance Materials 4% -2% -2% -1%
1,579 1,596 -1% Polymer Intermediates 7% -7% -1%  
149 102 46% Innovation Center 17% -2% -3% 34%
198 268   Corporate Activities        
9,051 8,588 5% Total continuing operations 5% -3% -3% 6%
567 543 4% Discontinued operations 4% 1% -1%  
Q4 2013 Q4 2012 +/- in € million FY 2013 FY 2012 +/-
316 243 30% EBITDA 1,314 1,109 18%
208 204 2% Nutrition 914 793 15%
1 0   Pharma 3 3 0%
78 52 50% Performance Materials 324 280 16%
30 14 114% Polymer Intermediates 113 129 -12%
-6 -9   Innovation Center -17 -38  
-14 -31   Corporate Activities -74 -94  
297 230 29% Total continuing operations 1,263 1,073 18%
19 13 46% Discontinued operations 51 36 42%
118 71 66% Core net profit, continuing operations 549 463 19%
101 70 44% Net profit before exceptional items, continuing operations 497 449 11%
-77 18   Net profit after exceptional items, total DSM 271 278 -3%
0.68 0.42 62% Core EPS (€/share) 3.19 2.80 14%
0.58 0.41 41% Net EPS before exceptional items, continuing operations (€/share) 2.84 2.59 10%
-0.46 0.10   Net EPS after exceptional items, total DSM (€/share) 1.52 1.62 -6%
426 183   Cash flow from operations 889 730  
228 212   Capital expenditures (cash) 735 686  
      Net debt 1,862 1,668  

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
media.contacts@dsm.com

Dave Huizing

Vice President Investor Relations
+31 45 578 2864
investor.relations@dsm.com

Media Relations

+31 45 578 2420

Investor Relations

+31 45 578 2864

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