Press release

DSM reports H1 2017 results

Heerlen, NL, 01 Aug 2017 07:00 CEST

Highlights H1

  • Continued good performance in Q2 concludes very strong H1
  • Sales up 11% to €4,320m, with 8% organic growth
  • Adjusted EBITDA up 16% to €721m, driven by both Nutrition and Materials
  • ROCE up 170 bps to 12.2%
  • Net profit up 42% to €312m
  • Interim dividend of €0.58 per ordinary share
  • Outlook 2017: slightly improved

Key figures and indicators

in € million H1 2017 H1 2016 % change Volume Price/mix FX Other
Sales 4,320 3,907 11% 6% 2% 3% 0%
Nutrition 2,778 2,545 9% 5% 1% 3% 0%
Materials 1,426 1,240 15% 8% 5% 1% 1%
Adjusted EBITDA 721 624 16%        
Nutrition 528 462 14%        
Materials 241 212 14%        
EBITDA 689 603          
ROCE (%)1 12.2% 10.5%          

1) January up until June

CEO statement

Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “DSM maintained its positive momentum with a very strong first half-year performance. The second quarter was another very good quarter.

Halfway through Strategy 2018, we are well ahead of our targets. All businesses are delivering on their growth initiatives, helping us outpace the market; we increasingly provide our customers with innovative solutions, resulting in a continued shift toward specialties. Furthermore, we are fully on track with our wide-ranging cost-reduction and efficiency improvement programs, while anchoring the high-performance culture we strive for. We also continued to make good progress with our sustainability agenda, future-proofing our operations and delivering products and solutions which help our customers to make their businesses more sustainable. The expected Patheon transaction demonstrates our commitment to monetize the significant value within our associates and earlier than anticipated.

While being mindful of the volatile macro-economic environment and the higher-base results achieved since 2015, we are confident for the remainder of the year and have increased our outlook for the full year."

Outlook 2017 slightly improved

DSM now expects to deliver full-year 2017 results above the targets set out in its Strategy 2018, with an EBITDA growth for the year moving slightly up from high single-digit to double digit, and with a ROCE increase moving from double digit basis points to over 100 basis points.

Q2 Highlights

  • DSM reports a very good Q2
  • Sales up 8% to €2,161m, with 6% organic growth
  • Adjusted EBITDA up 15% to €376m
  • Nutrition: 4% organic sales growth; Adjusted EBITDA up 14%
  • Materials: 4% volume growth; Adjusted EBITDA up 9%

Key figures and indicators

in € million Q2 2017 Q2 2016 % change Volume Price/mix FX Other
Sales 2,161 1,994 8% 4% 2% 2% 0%
Nutrition 1,380 1,295 7% 4% 0% 3% 0%
Materials 725 640 13% 4% 7% 1% 1%
Adjusted EBITDA 376 328 15%        
Nutrition 271 237 14%        
Materials 128 117 9%        
EBITDA 355 332          
ROCE (%)1 12.2% 10.5%          

1) January up until June

Key figures and indicators

in € million H1 2017 H1 2016 % change Volume Price/mix FX Other
Sales 4,320 3,907 11% 6% 2% 3% 0%
Nutrition 2,778 2,545 9% 5% 1% 3% 0%
Materials 1,426 1,240 15% 8% 5% 1% 1%
Innovation Center 84 83 1% 6% -6% 1% 0%
Corporate Activities 32 39          
in € million Q2 2017 Q2 2016 % change Volume Price/mix FX Other
Sales 2,161 1,994 8% 4% 2% 2% 0%
Nutrition 1,380 1,295 7% 4% 0% 3% 0%
Materials 725 640 13% 4% 7% 1% 1%
Innovation Center 41 40 3% 9% -7% 1% 0%
Corporate Activities 15 19          
in € million H1 2017 H1 2016 % change Q2 2017 Q2 2016 % change
Sales 4,320 3,907 11% 2,161 1,994 8%
Adjusted EBITDA 721 624 16% 376 328 15%
Nutrition 528 462 14% 271 237 14%
Materials 241 212 14% 128 117 9%
Innovation Center 1 1   0 0  
Corporate Activities -49 -51   -23 -26  
Adjusted EBITDA margin 16.7% 16.0%   17.4% 16.4%  
EBITDA 689 603   355 332  
Adjusted EBIT 478 396 21% 256 211 21%
EBIT 441 375   235 215  
Capital Employed 7,692 7,616        
Average Capital Employed 7,831 7,542        
ROCE  (%) 12.2% 10.5%        
Effective tax rate 18.0% 18.5%        
Adjusted net profit 338 244 39% 175 135 30%
Net profit - Total DSM 312 220 42% 163 135 21%
Adjusted net EPS 1.90 1.36 40% 0.98 0.76 29%
Net EPS - Total DSM 1.75 1.22   0.91 0.76  
Cash Flow 329 319 3% 133 182 -27%
Capital Expenditures1 250 177   120 78  
Net debt 2,205 2,466        

1) Cash, net of customer funding
In this report:
a) ‘Organic sales growth’ is the total impact of volume and price/mix;
b) ‘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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