Press release

DSM reports Q1 2018 results

Heerlen, NL, 08 May 2018 07:00 CEST


  • Continued strong organic sales growth in underlying business estimated at 11%
  • Adjusted EBITDA growth of underlying business estimated at 8%, despite significant FX headwind
  • ROCE of underlying business estimated at 13.3%, up 200 bps
  • Additional temporary vitamin price benefit estimated at €165m on Adjusted EBITDA
  • Total Adjusted EBITDA up 56% and Net profit up 122% to €331m
  • Cash from operating activities up 58%, amounting to €310m
  • Increased full year outlook confirmed

Key figures and indicators1

in € millionQ1 2018Q1 2017% change
vitamin effect2
Reported Underlying
organic growth2
FX &
total growth2
vitamin effect2
Materials738 73870111%-6%5% 5%
Adjusted EBITDA373165538345  8%48%56%
Nutrition277165442257  8%64%72%
Materials126 126113  12% 12%
Innovation-1 -11     
Corporate-29 -29-26     
Adjusted EBITDA margin16.8% 22.1%16.0%     

1) 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.
2) Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.

CEO statement

Feike Sijbesma, CEO/Chairman DSM Managing Board, commented: “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 resulted in a significantly higher outlook for the full year 2018, which we announced with our preliminary Q1 2018 results on 12 April 2018.”

Outlook 2018

DSM confirms its increased full year outlook 2018, as announced on 12 April 2018, and expects an Adjusted EBITDA growth towards 25% and a related higher ROCE growth. This is based on:

  • a low double-digit Adjusted EBITDA growth in the underlying business at constant currencies,
  • a negative foreign exchange effect on Adjusted EBITDA of about €80 million, and
  • an additional Adjusted EBITDA benefit estimated at €250 – 300 million from an exceptional vitamin pricing environment, that is expected to be temporary and heavily weighted towards the first half of the year

Key figures & indicators1

in € millionQ1 2018Q1 2017% changeVolumePrice /mixFXOther
Innovation Center3643     
Corporate Activities1117     
in € millionYTD 2018YTD 2017% changeQ1 2018Q1 2017% change
Adjusted EBITDA53834556%53834556%
Innovation Center-11 -11 
Corporate Activities-29-26 -29-26 
Adjusted EBITDA margin22.1%16.0% 22.1%16.0% 
EBITDA526334 526334 
Adjusted EBIT42322291%42322291%
EBIT411206 411206 
Capital Employed7,7417,914    
Average Capital Employed7,7537,901    
ROCE2 (%)21.8%11.3%    
Effective tax rate318.0%18.0%    
Adjusted net profit4337163107%337163107%
Net profit - Total DSM4331149122%331149122%
Adjusted net EPS1.910.92108%1.910.92108%
Net EPS - Total DSM1.880.84 1.880.84 
Operating Cash Flow31019658%31019658%
Capital Expenditures5170130 170130 
Net debt5792,081    
Average number of ordinary shares174.8175.1 174.8175.1 
Workforce (headcount end of period)

1) Including temporary vitamin effect
2) ROCE from underlying business H1 2018 is estimated at 13.8%
3) Over Adjusted taxable result
4) Including result attributed to non-controlling interest
5) Cash, net of customer funding, investment grants and excluding financial leases
6 )Year-end 2017

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

Dave Huizing

Vice President Investor Relations
+31 45 578 2864

Lieke de Jong-Tops

Senior Communications Manager
+31 45 578 2420

Dave Huizing

Vice-President Investor Relations
+31 45 578 2864