Press release

DSM reports Q1 2016 results

Heerlen, NL, 26 Apr 2016 07:00 CEST

Highlights

  • DSM reports a strong first quarter
  • Group net sales up at €1,913 million, with 2% organic growth
  • Group EBITDA up 19% to €296 million
  • Nutrition: 6% organic sales growth, EBITDA up 15%
  • Materials: EBITDA up 10%, supported by low input costs
  • Group ROCE: improved to 9.8% (Q1 2015: 6.8%) driven by EBIT growth
  • Outlook maintained

Key figures and indicators (continuing operations)

in € million Q1 2016 Q1 2015 % change Volume Price/Mix FX Other
Sales 1,913 1,886 1% 5% -3% -2% 1%
Nutrition 1,250 1,199 4% 7% -1% -4% 2%
Materials 600 632 -5% 1% -6% 0%  
EBITDA 296 248 19%        
Nutrition 225 195 15%        
Materials 95 86 10%        
ROCE (%) 9.8% 6.8%          

CEO statement

Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “We are pleased to report that we delivered a strong first quarter in terms of growth, profitability and returns, with all businesses seeing the effects of our improvement programs.

Both Animal and Human Nutrition delivered above-market volume growth, with Human Nutrition showing a marked improvement, albeit against a relatively weak comparable quarter in 2015. Our efforts resulted in EBITDA growth and an improved margin in Nutrition. Materials remained robust, helped in part by the shift towards higher added-value products in the portfolio. In addition, low input prices continued to support margins during Q1 2016 despite softer volumes in some segments, although we expect this support to diminish somewhat going forward.

While the macro-economic environment remains uncertain, we are confident that we will deliver in line with our medium-term goals. This will be supported by innovation, our growth initiatives and underpinned by our group-wide cost and productivity improvement programs.

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 and indicators (cont’d)

in € million Q1 2016 Q1 2015 % change Volume Price/mix FX Other
Sales - Continuing Operations 1,913 1,886 1% 5% -3% -2% 1%
Nutrition 1,250 1,199 4% 7% -1% -4% 2%
Materials 600 632 -5% 1% -6% 0%  
Innovation Center 43 36 19% 19% 0% 0%  
Corporate Activities 20 19          
Discontinued Operations 0 506          
in € million Q1 2016 Q1 2015 % change YTD Q1 2016 YTD Q1 2015 % change
Sales - Continuing Operations 1,913 1,886 1% 1,913 1,886 1%
Nutrition 1,250 1,199 4% 1,250 1,199 4%
Materials 600 632 -5% 600 632 -5%
Innovation Center 43 36   43 36  
Corporate Activities 20 19   20 19  
Discontinued Operations 0 506   0 506  
EBITDA - Continuing Operations 296 248 19% 296 248 19%
Nutrition 225 195 15% 225 195 15%
Materials 95 86 10% 95 86 10%
Innovation Center 1 -5   1 -5  
Corporate Activities -25 -28   -25 -28  
Discontinued Operations 0 38   0 38  
EBITDA margin - Continuing Operations 15.5% 13.1%   15.5% 13.1%  
EBIT - Continuing Operations 185 131 41% 185 131 41%
Capital Employed - Continuing Operations2 7,456 8,143   7,456 8,143  
Average Capital Employed2 7,505 7,750   7,505 7,750  
ROCE - Continuing Operations (%)1 9.8% 6.8%   9.8% 6.8%  
Profit for the period, before exceptional items - Continuing Operations 109 69 58% 109 69 58%
Profit for the period, after exceptional items - Total DSM 85 -71   85 -71  
Net EPS before exceptional items - Continuing Operations 0.60 0.39 54% 0.60 0.39 54%
Net EPS after exceptional items - Total DSM 0.46 -0.42   0.46 -0.42  
Cash Flow - Continuing Operations 137 84   137 84  
Capital Expenditures - Continuing Operations1 99 101   99 101  
Net debt2 2,269 2,3213   2,269 2,3213  

1 Cash, net of customer funding
2 Before reclassification to held for sale
3 Year-end 2015

In this report:
The ‘Performance Materials’ cluster is henceforth referred to as ‘Materials’;
'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 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’
Strategy 2018: Driving Profitable Growth

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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