HEERLEN, Netherlands, August 1, 2018 /PRNewswire/ --
H1 Highlights
- DSM reports a very good H1 with strong performance across all businesses
- Continued strong organic sales growth in underlying business estimated at 10%
- Adjusted EBITDA growth of underlying business estimated at 7%, despite significant FX headwind
- ROCE of underlying business estimated at 13.8%, up 160 bps
- Additional temporary vitamin price benefit estimated at €275m on Adjusted EBITDA
- Total Adjusted EBITDA up 45% and Net profit up 103% to €633m
- Cash from Operating Activities €503m up 53%
- Interim dividend of €0.77, reflecting the proposed dividend increase of about 25% for 2018
- Full year outlook reconfirmed
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Key figures and indicators[1]
in EUR H1 2018 H1 2017 % Change
million
Underlying Temporary Total Reported Under FX & Under Temporary Total
[2] [2] Group lying [2] 'other' lying [2] [2] Group
business vitamin organic [2] total vitamin
effect growth growth effect
Sales 4,429 365 4,794 4,320 10% -7% 3% 8% 11%
Nutrition 2,840 365 3,205 2,778 10% -8% 2% 13% 15%
Materials 1,492 1,492 1,426 9% -4% 5% 5%
Adjusted
EBITDA 771 275 1,046 721 7% 38% 45%
Nutrition 564 275 839 528 7% 52% 59%
Materials 261 261 241 8% 8%
Innovation 0 0 1
Corporate -54 -54 -49
EBITDA 754 275 1,029 689
Adjusted
EBITDA
margin 17.4% 21.8% 16.7%
[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.
CEO statement
Feike Sijbesma, CEO/Chairman DSM Managing Board, commented:
"Our ongoing focus on driving above market growth while pursuing efficiency initiatives and maintaining capital discipline, continues to drive our results. Following a strong start to the year, we are very pleased to report very good H1 results, with organic growth above market across all our businesses, and strong underlying Adjusted EBITDA growth despite significant foreign exchange headwinds. During the quarter, we also took another important step in monetizing our partnerships through announcing our exits from Fibrant and DSM Sinochem Pharmaceuticals. Our business conditions remain strong and we reiterate our full year 2018 outlook.
"We are convinced our recent strategy update will create enhanced organic sales growth and continued EBITDA momentum, as DSM evolves further towards a purpose-led, science-based company in Nutrition, Health and Sustainable Living. The step-up in our dividend for 2018, already reflected in the interim dividend, demonstrates our confidence in our future earnings growth."
Q2 Highlights
- DSM reports a very good Q2 with strong performance across all businesses
- Continued strong organic sales growth in underlying business estimated at 8%
- Adjusted EBITDA growth of underlying business estimated at 6%, despite significant FX headwind
- Nutrition: an estimated 8% underlying organic sales growth and Adjusted EBITDA growth of underlying business estimated at 6%
- Materials: 7% organic sales growth and Adjusted EBITDA growth of 5%
- Additional temporary vitamin price benefit estimated at €110m on Adjusted EBITDA
- Total Adjusted EBITDA up 35%
Key figures and indicators[1]
in EUR Q2 2018 Q2 2017 % Change
million
Underlying Temporary Total Reported Under FX & Under Temporary Total
[2] [2] Group lying [2] 'other' lying [2] [2] Group
business vitamin organic [2] total vitamin
effect growth growth effect
Sales 2,214 145 2,359 2,161 8% -6% 2% 7% 9%
Nutrition 1,410 145 1,555 1,380 8% -6% 2% 11% 13%
Materials 754 754 725 7% -3% 4% 4%
Adjusted
EBITDA 398 110 508 376 6% 29% 35%
Nutrition 287 110 397 271 6% 40% 46%
Materials 135 135 128 5% 5%
Innovation 1 1 0
Corporate -25 -25 -23
EBITDA 393 110 503 355
Adjusted
EBITDA
margin 18.0% 21.5% 17.4%
[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.
Outlook 2018
DSM confirms its full year outlook 2018, as provided at Q1 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 €70 million, and
- an additional Adjusted EBITDA benefit estimated at €275 million from a temporary exceptional vitamin pricing environment
Note for the editors: for the full text of the press release see enclosed pdf or click here
Financial calendar
31 October 2018 Publication of the results of the first nine months of 2018
14 February 2019 Publication of full year 2018 results
7 May 2019 Publication of the results of the first three months of 2019
8 May 2019 Annual General Meeting of Shareholders
1 August 2019 Publication of the half year results of 2019
5 November 2019 Publication of the results of the first nine months of 2019
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 purpose-led global science-based company in Nutrition, Health and Sustainable Living. DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. DSM delivers innovative business solutions for human nutrition, animal nutrition, personal care and aroma, medical devices, green products and applications, and new mobility and connectivity. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 23,000 employees. The company is listed on Euronext Amsterdam. More information can be found at http://www.dsm.com.
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.
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 2420
e. media.contacts@dsm.com
Royal DSM
media.contacts@dsm.com
http://www.dsm.com
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