DSM provides first nine months 2021 trading update

HEERLEN, Netherlands, Nov. 2, 2021 /PRNewswire/ --

Highlights^1,2   

• DSM delivered a very good nine months of the year
• Group sales +13% and Adjusted EBITDA +20%
• Nutrition: sales +8%, organic sales +7%, Adjusted EBITDA +8%
• Materials: sales +32%, organic sales +35%, Adjusted EBITDA +79%
• Full Year outlook 2021 unchanged

Key figures – continuing operations²

Co-CEOs statement
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs, commented: "Good end-user demand throughout the quarter continued the positive momentum of both our Nutrition and Materials businesses. We have delivered another strong period by actively managing the volatile global supply chain dynamics and therefore ensuring we remain able to meet the needs of our customers within the current challenging environment.

During the quarter we also provided an update on the acceleration of our strategy as a purpose-led, performance-driven leader in Health, Nutrition & Bioscience, including our new food system commitments."

Outlook 2021
For the full year, DSM continues to expect an Adjusted EBITDA increase in Nutrition at the upper end of its mid-term strategic ambition of high single digit growth. Together with the strong performance in Materials, DSM expects an Adjusted EBITDA growth rate for the Group in the mid-teens, with a continued good Adjusted Net Operating Free Cash Flow.

Q3 Highlights

• DSM delivered a very good third quarter
• Group sales +17% and Adjusted EBITDA +17%
• Nutrition: sales +14%, organic sales +8%, Adjusted EBITDA +8%
• Materials: sales +31%, organic sales +30%, Adjusted EBITDA +65%

Key figures and indicators  

Nutrition recorded strong organic sales growth of 8%, driven by very strong volumes in Animal Nutrition and in Personal Care. Human Nutrition and Food Specialties recorded further good organic growth too, building upon a strong comparable period in the prior year. The favorable business conditions of the first half of 2021 continued in the third quarter.

The Adjusted EBITDA was up 8%, with a 6% contribution from the acquisition of Erber and -1% from foreign exchange effects. The Adjusted EBITDA margin was slightly down at 20.7% mainly due to one-time effects including a lifetime extension project at a large vitamin plant.

Materials recorded another very strong quarter including a recovery from the COVID-19 pandemic effects last year. Organic sales growth was 30%, as Materials delivered a strong operational performance, successfully navigating global supply chain challenges as well as the disruptions caused by the semiconductor shortages impacting the automotive industry.

Adjusted EBITDA was up 65% versus same quarter last year. Adjusted EBITDA margin was up 440 bps to 21.5% versus 17.1% in Q3 last year, owing to the strong performance of both segments.

Note for the editors: for the full text of the press release see enclosed pdf or click here.

Additional Information
Starting in 2021, DSM changed its reporting cycle, in line with the established practice of many of its consumer ingredients peers. From Q1 2021, DSM will provide a trading update for Q1 and Q3. DSM will organize media and analyst calls during half year and full year.

DSM 
Royal DSM is a global, purpose-led company in Health, Nutrition & Bioscience, applying science to improve the health of people, animals and the planet. DSM's purpose is to create brighter lives for all. DSM's products and solutions address some of the world's biggest challenges while simultaneously creating economic, environmental and societal value for all its stakeholders – customers, employees, shareholders, and society at large. DSM and its associated companies employ approximately 23,000 people around the world and deliver annual net sales of about €10 billion. The company was founded in 1902 and is listed on Euronext Amsterdam. More information can be found at www.dsm.com.

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Forward Looking Statements
This press release may contain forward-looking statements with respect to DSM's future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. DSM has no obligation to update the statements contained in this press release, unless required by law. The English language version of the press release is leading.

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