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
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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

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