Press release

DSM reports Q4 2015 results

Heerlen, NL, 17 Feb 2016 07:00 CET

Highlights

  • Q4 Group: net sales up 6% to €1,926m and EBITDA up 3% to €261m
  • Q4 Nutrition: 7% organic growth with strong volume growth in both Animal and Human Nutrition
  • Q4 EBITDA: Nutrition up 3%, Performance Materials up 13%
  • Strong Q4 operating cash flow of €313m supported by working capital reduction
  • 2015: solid performance with Group net sales of €7,722m and EBITDA up 4% to €1,075m
  • Proposed dividend stable at €1.65 per ordinary share

Key figures and indicators (continuing operations)

in € million Q4 2015 Q4 2014 % change Volume Price/mix FX Other
Sales 1,926 1,811 6% 3% -2% 4% 1%
Nutrition 1,264 1,124 12% 7% 0% 3% 2%
Performance Materials 601 618 -3% -1% -7% 5%  
EBITDA 261 254 3%        
Nutrition 206 200 3%        
Performance Materials 90 80 13%        
ROCE (%)1 7.6%
8.2%          

1) Based on full year

CEO statement

Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “DSM’s fourth quarter performance, slightly ahead of expectations, was encouraging. We are particularly pleased with our progress in Nutrition, where both Animal and Human Nutrition delivered strong organic growth. Performance Materials continued to benefit from improved margins. In addition, our focus on cash flow and working capital efficiency contributed to a strong operating cash flow of 313 million.

This good progress in Q4 completes a year in which we achieved solid results. We delivered strong organic growth in Nutrition despite lower vitamin E prices. Cost savings and good margin management helped drive higher margins in Performance Materials, which also benefited from lower input costs. Currencies, while being a mixed bag, had a favorable effect overall despite the strengthening of the Swiss franc.

We expect to make further progress with our growth initiatives in 2016 both in Nutrition and Performance Materials although the macro-economic context remains challenging. These will be underpinned by our group-wide cost and productivity improvement programs as well as our disciplined focus on capital allocation and working capital. We are on track with these initiatives which will help drive improved profitability and return on capital that we target with our Strategy 2018.”

Outlook 2016

DSM aims to deliver increased full-year EBITDA and ROCE in line with the targets set out in its Strategy 2018: Driving Profitable Growth.

Key figures & indicators

in € million Q4 2015 Q4 2014 % change Volume Price/mix FX Other
Sales - Continuing Operations 1,926 1,811 6% 3% -2% 4% 1%
Nutrition 1,264 1,124 12% 7% 0% 3% 2%
Performance Materials 601 618 -3% -1% -7% 5%  
Innovation Center 40 42 -5% -15% 1% 9%  
Corporate Activities 21 27          
Discontinued Operations 0 563          
in € million FY 2015 FY 2014 % change Volume Price/mix FX Other
Sales -  Continuing Operations 7,722 7,051 10% 3% -2% 8% 1%
Nutrition 4,963 4,335 14% 6% 0% 7% 1%
Performance Materials 2,528 2,460 3% 0% -4% 7%  
Innovation Center 155 154 1% -11% 0% 12%  
Corporate Activities 76 102          
Discontinued operations 1,213 2,232          
in € million Q4 2015 Q4 2014 % change FY 2015 FY 2014 %change
Sales - Continuing Operations 1,926 1,811 6% 7,722 7,051 10%
Nutrition 1,264 1,124 12% 4,963 4,335 14%
Performance Materials 601 618 -3% 2,528 2,460 3%
Innovation Center 40 42 -5% 155 154 1%
Corporate Activities 21 27   76 102  
Discontinued Operations 0 563   1,213 2,232  
EBITDA - Continuing Operations 261 254 3% 1,075 1,038 4%
Nutrition 206 200 3% 822 850 -3%
Performance Materials 90 80 13% 384 323 19%
Innovation Center -1 -3   -9 -18  
Corporate Activities -34 -23   -122 -117  
Discontinued Operations 1 34   95 128  
EBITDA margin - Continuing Operations 13.6% 14.0%   13.9% 14.7%  
EBIT - Continuing Operations 115 128 -10% 573 587 -2%
Capital Employed - Continuing Operations       7,553 7,431  
ROCE - Continuing Operations (%)1       7.6% 8.2%  
Profit for the period, before exceptional items - Cont. Ops. 96 97 -1% 381 409 -7%
Profit for the period, after exceptional items - Total DSM 23 -107   88 145 -39%
Net EPS before exceptional items - Cont. Ops. 0.53 0.56 -5% 2.14 2.34 -9%
Net EPS after exceptional items - Total DSM 0.12 -0.63   0.45 0.78 -42%
Cash Flow - Continuing Operations 313 276   800 663  
Capital Expenditures - Continuing Operations2 147 182   468 451  
Net debt3       2,321 2,420  

1) ROCE calculated based on weighted average capital employed
2) Cash, net of customer funding
3) Before reclassification to held for sale

In this report:
‘Organic sales growth’ is the total impact of volume and price/mix;
‘Discontinued operations’ comprises net sales and operating profit (before depreciation and amortization) of DSM Pharmaceutical Products up to and including 10 March 2014 as well as DSM Fibre Intermediates and DSM Composite Resins up to and including 31 July 2015;
‘Total Working Capital’ refers to the total of ‘Operating Working Capital’ and ‘non-Operating Working Capital’.

The complete version of this press release with accompanying financial statements and the Presentation to Investors are below in PDF format.

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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