Press release

DSM reports results first nine months 2017

Heerlen, NL, 02 Nov 2017 07:00 CET

Highlights YTD 2017

  • Strong performance in Q3, contributing to very good first nine months
  • Sales up 9% to €6,456m, with 8% organic growth
  • Adjusted EBITDA up 15% to €1,086m, driven by both Nutrition and Materials
  • ROCE up 170 bps to 12.3%
  • Adjusted Net profit up 29% to €504m
  • Total Net profit of €1,603m, including gain on Patheon disposal of €1,250m
  • Outlook 2017 unchanged

Key figures and indicators

in € million Jan - Sep 2018 Jan - Sep 2017 % change Volume Price/mix FX Other
Sales 6,456 5,905 9% 7% 1% 1% 0%
Nutrition 4,151 3,848 8% 6% 1% 1% 0%
Materials 2,132 1,874 14% 8% 5% 0% 1%
Adjusted EBITDA (cont. operations)1 1,086 947 15%        
Nutrition 786 693 13%        
Materials 369 330 12%        
EBITDA (cont. ops) 1,032 904          
ROCE (%) 12.3% 10.6%          

1) Adjusted EBITDA (and adjusted Net profit) are Alternative Performance Measures (APM’s) that reflect continuing operations.
See page 11 of PDF version for definition and reconciliation

CEO statement

Feike Sijbesma, CEO and Chairman of the DSM Managing Board, commented: “We are pleased to report another strong quarter, resulting in a very good performance during the first nine months. Nutrition and Materials once again delivered organic growth rates well above their respective markets, with particularly good volume growth.

These results demonstrate significantly improved operational and financial performance, well ahead of plan, with all businesses delivering on their ambitious growth initiatives, and we are firmly on track with our cost-reduction and efficiency improvement programs. Furthermore, we successfully divested our share in Patheon ahead of schedule.

DSM confirms its full year 2017 outlook, despite slightly less favorable currency developments. In addition, with all of these developments ahead of plan we are bringing forward our regular strategic review process for the period beyond 2018 and anticipate communicating the results before mid-year 2018, as announced at our September Investor Event.”

Outlook 2017 unchanged

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

Q3 Highlights

  • DSM reports another strong quarter in Q3
  • Sales up 7% to €2,136m, with 10% organic growth
  • Adjusted EBITDA up 13% to €365m
  • Nutrition: 8% organic sales growth; Adjusted EBITDA up 12%
  • Materials: 9% volume growth; Adjusted EBITDA up 8%

Key figures & indicators

in € million Q3 2017 Q3 2016 % change Volume Price/mix FX Other
Sales 2,136 1,998 7% 9% 1% -3% 0%
Nutrition 1,373 1,303 5% 9% -1% -3% 0%
Materials 706 634 11% 9% 5% -3% 0%
Adjusted EBITDA (cont. operations)1 365 323 13%        
Nutrition 258 231 12%        
Materials 128 118 8%        
EBITDA (cont. ops) 343 301          
ROCE (%)2 12.3% 10.6%          

1) Adjusted EBITDA (and adjusted Net profit) are Alternative Performance Measures (APM’s) that reflect continuing operations.
See page 11 of PDF version for definition and reconciliation
2) January up until September

Key figures & indicators

in € million Jan - Sep 2017 Jan - Sep 2016 % change Volume Price/mix FX Other
Sales 6,456 5,905 9% 7% 1% 1% 0%
Nutrition 4,151 3,848 8% 6% 1% 1% 0%
Materials 2,132 1,874 14% 8% 5% 0% 1%
Innovation Center 126 126          
Corporate Activities 47 57          
in € million Q3 2017 Q3 2016 % change Volume Price/mix FX Other
Sales 2,136 1,998 7% 9% 1% -3%  
Nutrition 1,373 1,303 5% 9% -1% -3%  
Materials 706 634 11% 9% 5% -3%  
Innovation Center 42 43          
Corporate Activities 15 18          
in € million Jan - Sep 2017 Jan - Sep 2016 % change Q3 2017 Q3 2016 % change
Sales 6,456 5,905 9% 2,136 1,998 7%
Adjusted EBITDA (continued operations) 1,086 947 15% 365 323 13%
Nutrition 786 693 13% 258 231 12%
Materials 369 330 12% 128 118 8%
Innovation Center 5 2   4 1  
Corporate Activities -74 -78   -25 -27  
Adjusted EBITDA margin 16.8% 16.0%   17.1% 16.2%  
EBITDA (continued operations) 1,032 904   343 301  
Adjusted EBIT (continued operations) 717 601 19% 239 205 17%
EBIT (continued operations) 647 546   206 171  
Capital Employed 7,620 7,620        
Average Capital Employed 7,779 7,561        
ROCE (%) 12.3% 10.6%        
Effective tax rate 18.0% 18.5%        
Adjusted net profit (continued operations) 504 390 29% 166 146 14%
Net profit - Total DSM 1,603 542 196% 1,291 322 301%
Adjusted net EPS 2.81 2.17 29% 0.91 0.81 12%
Net EPS - Total DSM 9.09 3.04   7.34 1.82  
Cash Flow 619 644 -4% 290 325 -11%
Capital Expenditures1 384 305   134 128  
Net debt 703 2,054        

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