HEERLEN, Netherlands, February 14, 2018 /PRNewswire/ --
Full year Highlights
- Strong performance in Q4, contributing to an excellent year
- Sales up 9% to €8,632m, with 9% organic growth mainly from volume growth
- Adjusted EBITDA up 15% to €1,445m, driven by both Nutrition and Materials
- ROCE up 190 bps to 12.3%
- Adjusted net profit up 36% to €706m
- Total net profit of €1,781m, including gain on Patheon disposal of €1,250m
- Proposed dividend increase from €1.75 to €1.85 per ordinary share
- Full year outlook 2018 above Strategy 2018 targets
Key figures and indicators
in EUR million FY 2017 FY 2016 % Change Volume Price/mix FX Other
Sales 8,632 7,920 9% 7% 2% -1% 1%
Nutrition 5,579 5,169 8% 7% 1% 0% 0%
Materials 2,825 2,513 12% 7% 6% -2% 1%
Adjusted EBITDA[1] 1,445 1,262 15%
Nutrition 1,053 931 13%
Materials 488 435 12%
EBITDA (cont.
operations) 1,348 1,174
ROCE (%) 12.3% 10.4%
[1]Adjusted EBITDA (and Adjusted net profit) are Alternative Performance Measures (APMs) that reflect continuing operations.
See page 17 for definition and reconciliation
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CEO statement
"We are delighted to report again an excellent year, as we significantly exceeded our Strategy 2018 targets for EBITDA, ROCE and organic sales growth. Our focus on driving above market growth while relentlessly pursuing efficiency initiatives and maintaining capital discipline continues to produce very good results in both Nutrition and Materials.
Our success comes from the ability to deliver sustainable, innovative solutions to meet our customers' demand and help them to address end-market needs. Furthermore, we have taken next steps in embedding the organizational agility and culture that we seek within our company. We are firmly on track with our cost-reduction and efficiency improvement programs. In addition, we successfully divested our share in Patheon ahead of schedule, creating significant value. With all of these developments ahead of plan we brought forward our regular strategic review process for the period beyond 2018.
We remain relentlessly focused on improving our operational and financial performance through our growth initiatives and by completing the final stage of our improvement programs. These actions should allow us to continue our above-market growth and further improve our financial returns and capital efficiency. We expect to deliver above our Strategy 2018 targets in 2018."
Outlook 2018
DSM expects to deliver full-year 2018 results above the targets set in Strategy 2018, with an Adjusted EBITDA growth somewhat up from high single-digit to double-digit and a ROCE growth above 100 basis points. The expected substantial negative foreign exchange effects, based on current rates, will be more than offset by a positive pricing environment in Nutrition, part of which is temporary in nature and expected to be heavily weighted towards the first half of the year.
Q4 Highlights
- DSM reports another strong quarter
- Sales up 8% to €2,176m, with 12% organic growth, driven by volumes and prices
- Adjusted EBITDA up 14% to €359m
- Nutrition: 13% organic sales growth; Adjusted EBITDA up 12%
- Materials: 5% volume growth; Adjusted EBITDA up 13%
Key figures and indicators
in EUR million Q4 2017 Q4 2016 % Change Volume Price/mix FX Other
Sales 2,176 2,015 8% 7% 5% -5% 1%
Nutrition 1,428 1,321 8% 9% 4% -6% 1%
Materials 693 639 8% 5% 7% -4% 0%
Adjusted EBITDA[1] 359 315 14%
Nutrition 267 238 12%
Materials 119 105 13%
EBITDA (cont.
operations) 316 270
ROCE (%)[2] 12.3% 10.4%
[1]Adjusted EBITDA (and Adjusted net profit) are Alternative Performance Measures (APMs) that reflect continuing operations.
See page 17 for definition and reconciliation
[2]Full year 2017
Note for the editors: for the full text of the press release see enclosed pdf or click here>
Financial calendar
Beginning of March Publication of Integrated Annual Report 2017
8 May 2018 Publication of the results of the first three months of 2018
9 May 2018 Annual General Meeting of Shareholders
11 May 2018 Ex-dividend
1 August 2018 Publication of the half year results of 2018
31 October 2018 Publication of the results of the first nine months of 2018
Additional Information
Today DSM will hold a conference call for media at 08:00 and a conference call for investors and analysts at 09:00. Details on how to access these calls can be found on the DSM website, http://www.dsm.com.
DSM - Bright Science. Brighter Living.™
Royal DSM is a global science-based company active in health, nutrition and materials. By connecting its unique competences in life sciences and materials sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders simultaneously. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 25,000 employees. The company is listed on Euronext Amsterdam. More information can be found at http://www.dsm.com.
Forward Looking Statement
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.
Contact Information
Investor Relations
Dave Huizing
t. +31(0)45-578-2864
e. investor.relations@dsm.com
Media Relations
Lieke de Jong
t. +31(0)45-578-2421
e. media.contacts@dsm.com
PRN NLD
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