Heerlen, NL, 12 Apr 2018 07:00 CEST
Royal DSM, a global science-based company active in health, nutrition and materials, today issues preliminary results for Q1 2018, ahead of the scheduled Q1 results announcement on 8 May 2018.
|in € million||Q1 2018||Q1 2017||% change|
1) Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.
2) Underlying business is defined in this press release as the performance measures sales and adjusted EBITDA, corrected for DSM’s best estimate of the vitamin effect, which is expected to be temporary.
Feike Sijbesma, CEO/Chairman DSM Managing Board, commented on the preliminary results: “We are very pleased that the strong underlying performance of our business continues, with growth well above market. In addition, we are currently benefitting from substantially higher prices in some vitamins due to exceptional supply disruptions in the industry, which are expected to be temporary and heavily weighted towards the first half of the year. These two combined result in a significantly higher outlook for the full year 2018.”
DSM raises its full year outlook 2018 and now expects an Adjusted EBITDA growth towards 25% and a related higher ROCE growth. This is based on:
DSM expects to report a very strong first quarter, with an estimated organic sales growth from the underlying business of 11%. Including the negative foreign currency effects, the total sales growth in the underlying business is estimated to be 3% and the Adjusted EBITDA growth 7%.
The first quarter also benefitted from an additional Adjusted EBITDA contribution estimated at €165 million from an exceptional vitamin pricing environment.
Organic sales growth in the underlying Nutrition business is estimated to be 12%, driven by continued strong volume growth of 7%, well above market. Higher prices in the quarter of 5% partly off-set the negative foreign currency effects and higher input costs.
Including the negative foreign exchange effects, the Adjusted EBITDA of the underlying business is estimated to be up 7%, with an Adjusted EBITDA margin of about 19%.
In addition, due to the exceptional supply disruptions in the industry, the first quarter also benefitted from an estimated €165 million additional Adjusted EBITDA contribution from an exceptional vitamin price environment expected to be temporary.
Organic sales growth in Materials is expected to be 11% resulting from about 7% in volume growth and about 4% higher prices, driven by the implementation of price increases to off-set higher input costs.
Including the negative foreign exchange effects, the Adjusted EBITDA is expected to be up 11%, with an Adjusted EBITDA margin of about 17%.
Today DSM will hold a conference call for the media from 09:00 to 09:30 CET and a conference call for investors and analysts from 10:00 to 10:30 CET.
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