Press release

DSM reports Q2 2015 results

Heerlen, NL, 04 Aug 2015 07:15 CEST

  • 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.”

Key figures

Q2 2015 Q2 2014 +/- in € million volume price/mix exch. rates other
      Net sales        
1,247 1,073 16% Nutrition 5% -2% 11% 2%
664 615 8% Performance Materials 2% -4% 10%  
37 38 -3% Innovation Center -14% 0% 11%  
17 28   Corporate Activities        
1,965 1,754 12% Total continuing operations 3% -2% 10% 1%
550 534   Discontinued operations        
Q2 2015 Q2 2014 +/- in € million H1 2015 H1 2014 +/-
      EBITDA      
208 222 -6% Nutrition 403 425 -5%
106 85 25% Performance Materials 192 156 23%
-3 -5   Innovation Center -8 -11  
-32 -38   Corporate Activities -60 -67  
279 264 6% Total continuing operations 527 503 5%
53 29   Discontinued operations 91 60  
129 122 6% Core net profit (continuing operations) 217 228 -5%
110 108 2% Net profit before exceptional items, continuing operations 179 199 -10%
99 78 27% Net profit after exceptional items, total DSM 29 159 -82%
0.74 0.71 4% Core EPS (€/share) 1.25 1.32 -5%
0.63 0.62 2% Net EPS before exceptional items, continuing operations (€/share) 1.02 1.14 -11%
0.56 0.45 24% Net EPS after exceptional items, total DSM  (€/share) 0.14 0.90 -84%
103 124   Cash flow from continuing operations 187 135  
107 90   Capital expenditures continuing operations (cash, net of customer funding) 208 182  
      Net debt 2,863 2,420*  

* Year-end 2014

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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