Press release
DSM reports 2016 results
Heerlen, NL, 15 Feb 2017 07:00 CET
Full year Highlights
- Very strong 2016, well ahead of strategic goals
- Sales up 3% to €7,920m, with 4% organic growth
- Adjusted EBITDA1 up 17% to €1,262m
- ROCE up 280 bps to 10.4% driven by 38% increase in Adjusted EBIT1
- Cash from operating activities up 27% to €1,018m
- Net profit of €629m compared to €92m in 2015
- Proposed dividend increase from €1.65 to €1.75 per ordinary share
Full year key figures and indicators (continuing operations)
| in € million | FY 2016 | FY 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 7,920 | 7,722 | 3% | 4% | 0% | -1% | 0% |
| Nutrition | 5,169 | 4,963 | 4% | 3% | 2% | -1% | 0% |
| Materials | 2,513 | 2,528 | -1% | 4% | -5% | -1% | 1% |
| Adjusted EBITDA1 | 1,262 | 1,075 | 17% | ||||
| Nutrition | 931 | 822 | 13% | ||||
| Materials | 435 | 384 | 13% | ||||
| EBITDA | 1,174 | 956 | |||||
| ROCE (%) | 10.4% | 7.6% |
1) Main non-IFRS terms are explained on page 23 'Notes to the condensed financial statements'. A reconciliation is provided on pages 15 and 17 of the PDF.
CEO statement
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “With today’s results, we are clearly delivering on the goals we set out at the end of 2015. We are pleased to report a very good year, in which we achieved strong EBITDA and ROCE growth, well ahead of the mid-term targets set out in Strategy 2018: Driving Profitable Growth.
Nutrition achieved a year of strong organic growth, in both Animal and Human Nutrition & Health. The Materials transformation is apparent in strong volume and margin growth, driven by our focus on specialties. In addition, we made good progress on our extensive improvement programs. Besides stepping up our financial performance, we were also able to drive our innovation and sustainability agenda in 2016, as well as taking further steps in anchoring the organizational agility and culture that we aim at.
While macro-economic conditions are uncertain, we are confident that in 2017 we will again deliver on our strategic objectives, despite a higher comparative base year. We will continue to execute our growth initiatives, and we are firmly on track with our ambitious, group-wide cost and productivity improvement programs. In addition, we will maintain our disciplined approach to capital allocation and working capital.”
Outlook 2017
DSM aims to deliver high single-digit percentage Adjusted EBITDA growth and high double-digit basis point ROCE growth in line with the targets set out in its Strategy 2018.
Q4 Highlights
- Sales up 5% to €2,015m, with 2% organic growth
- Adjusted EBITDA1 up 21% to €315m
- Nutrition: 2% organic sales growth; Adjusted EBITDA up 16%
- Materials: 7% volume growth; Adjusted EBITDA up 17%
- Cash from operating activities up 19% to €374m
Key figures & indicators
| in € million | Q4 2016 | Q4 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 2,015 | 1,926 | 5% | 2% | 0% | 2% | 1% |
| Nutrition | 1,321 | 1,264 | 5% | 0% | 2% | 3% | 0% |
| Materials | 639 | 601 | 6% | 7% | -3% | 1% | 1% |
| Adjusted EBITDA1 | 315 | 261 | 21% | ||||
| Nutrition | 238 | 206 | 16% | ||||
| Materials | 105 | 90 | 17% | ||||
| EBITDA | 270 | 230 | |||||
| ROCE (%)2 | 10.4% | 7.6% |
1) Main non-IFRS terms are explained on page 23 'Notes to the condensed financial statements'. A reconciliation is provided on pages 15 and 17 of the PDF.
2) January until December.
| in € million | Q4 2016 | Q4 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 2,015 | 1,926 | 5% | 2% | 0% | 2% | 1% |
| Nutrition | 1,321 | 1,264 | 5% | 0% | 2% | 3% | 0% |
| Materials | 639 | 601 | 6% | 7% | -3% | 1% | 1% |
| Innovation Center | 41 | 40 | 0% | -2% | 0% | 1% | 1% |
| Corporate Activities | 14 | 21 | |||||
| Discontinued Operations | 0 | 0 |
| in €million | FY 2016 | FY 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 7,920 | 7,722 | 3% | 4% | 0% | -1% | 0% |
| Nutrition | 5,169 | 4,963 | 4% | 3% | 2% | -1% | 0% |
| Materials | 2,513 | 2,528 | -1% | 4% | -5% | -1% | 1% |
| Innovation Center | 167 | 155 | 7% | 6% | 0% | 0% | 1% |
| Corporate Activities | 71 | 76 | |||||
| Discontinued operations | 0 | 1,213 |
| in € million | Q4 2016 | Q4 2015 | % change | FY 2016 | FY 2015 | % change |
|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 2,015 | 1,926 | 5% | 7,920 | 7,722 | 3% |
| Adjusted EDITDA - Continuing Operations1 | 315 | 261 | 21% | 1,262 | 1,075 | 17% |
| Nutrition | 238 | 206 | 16% | 931 | 822 | 13% |
| Materials | 105 | 90 | 17% | 435 | 384 | 13% |
| Innovation Center | -1 | -1 | 1 | -9 | ||
| Corporate Activities | -27 | -34 | -105 | -122 | ||
| Discontinued Operations | 0 | 1 | 0 | 95 | ||
| Adjusted EBITDA margin - Continuing Operations1 | 15.6% | 13.6% | 15.9% | 13.9% | ||
| EBITDA - Continuing Operations | 270 | 230 | 1,174 | 956 | ||
| Adjusted EBIT - Continuing Operations1 | 190 | 115 | 65% | 791 | 573 | 38% |
| EBIT - Continuing Operations | 139 | 36 | 685 | 362 | ||
| Capital Employed - Continuing Operations2 | 7,889 | 7,553 | ||||
| Average Capital Employed - Continuing Operations2 | 7,627 | 7,512 | ||||
| ROCE - Continuing Operations (%) | 10.4% | 7.6% | ||||
| Effective tax rate | 18.3% | 22.9% | ||||
| Adjusted net profit - Continuing Operations1 | 130 | 96 | 35% | 520 | 381 | 36% |
| Net profit - Total DSM |
87 | 29 | 629 | 92 | ||
| Adjusted net EPS - Continuing Operations1 |
0.73 | 0.53 | 38% | 2.90 | 2.14 | 36% |
| Net EPS - Total DSM | 0.48 | 0.12 | 3.52 | 0.45 | ||
| Cash Flow - Continuing Operations | 374 | 313 | 19% | 1,018 | 800 | 27% |
| Capital Expenditures - Continuing Operations3 | 170 | 147 | 475 | 468 | ||
| Net debt2 | 2,070 | 2,321 |
1) Main non-IFRS terms are explained on page 23 'Notes to the condensed financial statements'. A reconciliation is provided on pages 15 and 17 of the PDF.
2) Before reclassification to held for sale
3) Cash, net of customer funding
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
Lieke de Jong-Tops
Senior Communications Manager
+31 45 578 2420
Dave Huizing
Vice-President Investor Relations
+31 45 578 2864