Press release

DSM reports Q3 2016 results

Heerlen, NL, 03 Nov 2016 07:00 CET

Highlights

  • DSM reports another strong quarter
  • Group sales up at €1,998m, with 3% organic growth, and EBITDA up 13% to €323m
  • Nutrition: 5% organic sales growth, EBITDA up 8%
  • Materials: 5% volume growth, EBITDA up 16%
  • Group ROCE improved to 10.6% (end Q3 2015: 7.9%) driven by higher EBIT
  • Net profit up 38% to €146m (€322m after exceptionals, including proceeds from Patheon IPO)
  • Outlook maintained

Key figures and indicators (continuing operations)

in € million Q3 2016 Q3 2015 % change Volume Price/mix FX Other
Sales 1,998 1,945 3% 3% 0% 0% 0%
Nutrition 1,303 1,253 4% 3% 2% -1% 0%
Materials 634 631 0% 5% -5% -1% 1%
EBITDA 323 287 13%        
Nutrition 231 213 8%        
Materials 118 102 16%        
ROCE (%)1 10.6 7.9          

1) January until September

CEO statement

Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “We are pleased to report another quarter of strong operational and financial progress. This was driven by both Materials and Nutrition, reflecting the progress we are making on delivering on our Strategy 2018 through our growth initiatives as well as ambitious improvement and cost savings actions.

Materials had a quarter of strong volume growth driven again by specialties, enhanced by particularly high margins as a result of a very favorable product mix and pro-active margin management, while still benefiting from low input costs. Nutrition delivered good EBITDA growth, despite additional costs in the quarter. Animal Nutrition benefited from increased vitamin prices, with solid volume growth against a tougher prior year comparison. Human Nutrition delivered strong volume growth.

While the global macro-economic environment remains a concern, we continue to expect that for the full year 2016, we will deliver ahead of our medium-term goals, given the strong ongoing performance of our business, underpinned by our continued focus on the improvement programs.”

Outlook 2016 maintained

DSM continues to expect to deliver full-year 2016 results ahead of the medium-term targets set out in its Strategy 2018, with a mid-teens EBITDA growth and an increase in ROCE of over 200 basis points.

Key figures & indicators

in € million Q3 2016 Q3 2015 % change Volume Price/mix FX Other
Sales - Continuing Operations 1,998 1,945 3% 3% 0% 0% 0%
Nutrition 1,303 1,253 4% 3% 2% -1% 0%
Materials 634 631 0% 5% -5% -1% 1%
Innovation Center 43 42 2% 2% 0% 0% 0%
Corporate Activities 18 19          
Discontinued operations 0 157          
in € million Jan - Sep 2016 Jan - Sep 2015 % change Volume Price/mix FX Other
Sales - Continuing operations 5,905 5,796 2% 5% -1% -2% 0%
Nutrition 3,848 3,699 4% 5% 1% -3% 1%
Materials 1,874 1,927 -3% 3% -6% -1% 1%
Innovation Center 126 115 10% 10% 0% -1% 1%
Corporate Activities 57 55          
Discontinued operations 0 1,213          
in € million Q3 2016 Q3 2015 % change Jan - Sep 2016 Jan - Sep 2015 % change
Sales - Continuing Operations 1,998 1,945 3% 5,905 5,796 2%
Nutrition 1,303 1,253 4% 3,848 3,699 4%
Materials 634 631 0% 1,874 1,927 -3%
Innovation Center 43 42 2% 126 115 10%
Corporate Activities 18 19   57 55  
Discontinued Operations 0 157   0 1,213  
EBITDA - Continuing Operations 323 287 13% 947 814 16%
Nutrition 231 213 8% 693 616 13%
Materials 118 102 16% 330 294 12%
Innovation Center 1 0   2 -8  
Corporate Activities -27 -28   -78 -88  
Discontinued Operations 0 3   0 94  
EBITDA margin - Continuing Operations 16.2% 14.8%   16.0% 14.0%  
EBIT - Continuing Operations 205 170 21% 601 458 31%
Capital Employed - Continuing Operations1       7,620 7,558  
Average Capital Employed1       7,561 7,757  
ROCE - Continuing Operations (%)2       10.6% 7.9%  
Profit for the period, before exceptional items - Continuing Operations 146 106 38% 390 285 37%
Profit for the period, after exceptional items - Total DSM 322 33   542 63  
Net EPS before exceptional items - Continuing Operations 0.81 0.59 37% 2.17 1.61 35%
Net EPS after exceptional items - Total DSM 1.82 0.19   3.04 0.33  
Cash Flow - Continuing Operations 325 300   644 487  
Capital Expenditures - Continuing Operations3 128 113   305 321  
Net debt1       2,054 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:
a) 'Organic sales growth’ is the total impact of volume and price/mix;
b) ‘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;
c) ‘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