Press release

DSM reports Q2 2016 results

Heerlen, NL, 02 Aug 2016 07:00 CEST

Highlights

  • DSM reports a second consecutive strong quarter in 2016
  • Group net sales up at €1,994 million, with 5% organic growth, and EBITDA up 18%
  • Nutrition: organic sales growth of 9%, EBITDA up 14%
  • Materials: volumes up 5%, EBITDA up 10%
  • H1 Group ROCE: improved to 10.5% (H1 2015: 7.4%) driven by higher EBIT
  • Interim dividend of €0.55 per ordinary share
  • Outlook revised upward

Key figures and indicators (continuing operations)

in € million Q2 2016 Q2 2015 % change Volume Price/mix FX Other
Sales 1,994 1,965 1% 6% -1% -4% 0%
Nutrition 1,295 1,247 4% 7% 2% -5% 0%
Materials 640 664 -4% 5% -7% -2%  
EBITDA 328 279 18%        
Nutrition 237 208 14%        
Materials 117 106 10%        
ROCE (%) 10.5 7.4          

CEO statement

Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “Our positive momentum from Q1 continued and we are pleased to deliver another strong quarter. This was driven by good growth across our businesses and steady progress in our operations. Furthermore, we remain on track with our ambitious group-wide improvement and cost saving programs.

Materials performed particularly well, with good volume growth, notably in specialties, and a strong margin performance. This was supported by a favorable product mix, continued low input costs, and proactive margin management. In Nutrition, animal nutrition delivered high growth, benefitting in part from a favorable prior year comparison. We were also pleased with the continued progress in human nutrition, which delivered solid growth in line with our medium-term plans to outgrow the market.

During the quarter, uncertainty and volatility within the global macro-economic environment increased. While this remains a concern, we expect that for 2016 we will deliver ahead of our medium-term goals, given the strong performance of our business, underpinned by our continued focus on our improvement programs.”

Outlook 2016 revised upward

DSM aims to deliver increased full-year EBITDA and ROCE in line with the targets set out in its Strategy 2018: Driving Profitable Growth. While global macro-economic developments remain a concern, DSM now expects to deliver full-year 2016 results ahead of the medium term targets set out in its Strategy 2018, with an EBITDA growth for the year moving from high-single digit into the low to mid teens, and an increase in ROCE from high double-digit to over 200 basis points.

Key figures and indicators (cont’d)

in € million Q2 2016 Q2 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 H1 2016 H1 2015 % change Volume Price/mix FX Other
Sales - Continuing Operations 3,907 3,851 1% 6% -2% -3% 0%
Nutrition 2,545 2,446 4% 6% 1% -4% 1%
Materials 1,240 1,296 -4% 3% -6% -1%  
Innovation Center 83 73 14% 14% 0% -1% 1%
Corporate Activities 39 36          
Discontinued Operations 0 1,056          
in € million Q2 2016 Q2 2015 % change H1 2016 H1 2015 % change
Sales - Continuing Operations 1,994 1,965 1% 3,907 3,851 1%
Nutrition 1,295 1,247 4% 2,545 2,446 4%
Materials 640 664 -4% 1,240 1,296 -4%
Innovation Center 40 37 8% 83 73 14%
Corporate Activities 19 17   39 36  
Discontinued Operations 0 550   0 1,056  
EBITDA - Continuing Operations 328 279 18% 624 527 18%
Nutrition 237 208 14% 462 403 15%
Materials 117 106 10% 212 192 10%
Innovation Center 0 -3   1 -8  
Corporate Activities -26 -32   -51 -60  
Discontinued Operations 0 53   0 91  
EBITDA margin - Continuing Operations 16.4% 14.2%   16.0% 13.7%  
EBIT - Continuing Operations 211 157 34% 396 288 38%
Capital Employed - Continuing Operations1       7,616 7,897  
Average Capital Employed1       7,542 7,824  
ROCE - Continuing Operations (%)2       10.5% 7.4%  
Profit for the period, before exceptional items - Continuing Operations 135 110 23% 244 179 36%
Profit for the period, after exceptional items - Total DSM 135 101   220 30  
Net EPS before exceptional items - Continuing Operations 0.76 0.63 21% 1.36 1.02 33%
Net EPS after exceptional items - Total DSM 0.76 0.56   1.22 0.14  
Cash Flow - Continuing Operations 182 103   319 187  
Capital Expenditures - Continuing Operations3 78 107   177 208  
Net debt1       2,466 2,3214  

1) Before reclassification to held for sale
2) ROCE calculated based on weighted average capital employed
3) Cash, net of customer funding
4) Year-end 2015

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 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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