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 2013Q4 2012+/-in € millionvolumeprice/mixexch. ratesother
2,3772,2695%Net sales6%-2%-3%4%
6596551%Performance Materials7%-2%-3%-1%
3933930%Polymer Intermediates11%-9%-2% 
383315%Innovation Center21%-3%-3% 
4668 Corporate Activities    
2,2192,1185%Total continuing operations7%-3%-3%4%
1581515%Discontinued operations6%1%-2% 
FY 2013FY 2012+/-in € millionvolumeprice/mixexch. ratesother
9,6189,1315%Net sales5%-3%-2%5%
2,7462,772-1%Performance Materials4%-2%-2%-1%
1,5791,596-1%Polymer Intermediates7%-7%-1% 
14910246%Innovation Center17%-2%-3%34%
198268 Corporate Activities    
9,0518,5885%Total continuing operations5%-3%-3%6%
5675434%Discontinued operations4%1%-1% 
Q4 2013Q4 2012+/-in € millionFY 2013FY 2012+/-
10 Pharma330%
785250%Performance Materials32428016%
3014114%Polymer Intermediates113129-12%
-6-9 Innovation Center-17-38 
-14-31 Corporate Activities-74-94 
29723029%Total continuing operations1,2631,07318%
191346%Discontinued operations513642%
1187166%Core net profit, continuing operations54946319%
1017044%Net profit before exceptional items, continuing operations49744911%
-7718 Net profit after exceptional items, total DSM271278-3%
0.680.4262%Core EPS (€/share)3.192.8014%
0.580.4141%Net EPS before exceptional items, continuing operations (€/share)2.842.5910%
-0.460.10 Net EPS after exceptional items, total DSM (€/share)1.521.62-6%
426183 Cash flow from operations889730 
228212 Capital expenditures (cash)735686 
   Net debt1,8621,668 

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

Dave Huizing

Vice President Investor Relations
+31 45 578 2864

Media Relations

+31 45 578 2420

Investor Relations

+31 45 578 2864