HEERLEN, Netherlands, May 7, 2019 /PRNewswire/ --
Highlights[1],[2],[3]
- DSM reports a good start to the year
- Results compared to Underlying business in Q1 2018:
- Group sales up 3%, Adjusted EBITDA up 10% to €412m
(up 14% to €424m including IFRS 16 impact of €12m) - Nutrition: organic sales +3%, Adjusted EBITDA up 11% to €309m
(up 14% to €316m including IFRS 16 impact of €7m) - Materials: organic sales -5%, Adjusted EBITDA flat on €126m
(up 1% to €127m including IFRS 16 impact of €1m)
- Group sales up 3%, Adjusted EBITDA up 10% to €412m
- Adjusted Net Operating Free Cash Flow €60m
- Total Net profit €196m, up versus Q1 2018 of €331m when correcting for the temporary vitamin effect of €165m EBITDA following an exceptional supply disruption in the industry
- Full year outlook increased
(Logo: https://mma.prnewswire.com/media/657851/DSM_Logo.jpg )
Key figures and indicators
in EUR million Q1 2019 Q1 2018
Temp.
Underlying[1] vitamin Total
business effect Group
Sales 2,292 2,215 220 2,435
Nutrition 1,517 1,430 220 1,650
Materials 717 738 738
Adjusted EBITDA 424 373 165 538
Nutrition 316 277 165 442
Materials 127 126 126
Innovation 6 -1 -1
Corporate -25 -29 -29
EBITDA 416 361 165 526
Adjusted EBITDA margin 18.5% 16.8% 22.1%
(cont.)
% Change
Underlying[1] FX & Temporary
Organic 'other'[1] Underlying[1] vitamin Total
growth total growth effect Group
Sales 1% 2% 3% -9% -6%
Nutrition 3% 3% 6% -14% -8%
Materials -5% 2% -3% -3%
Adjusted EBITDA 14% -35% -21%
Nutrition 14% -43% -29%
Materials 1% 1%
Innovation
Corporate
EBITDA
Adjusted EBITDA margin
[1] Underlying (business) in 2018 is defined as the performance measures sales and Adjusted EBITDA, corrected for DSM's best estimate of the temporary vitamin effect.
[2] Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.
[3] IFRS 16 is only effective as per 1 January 2019, the 2018 figures have not been adjusted.
CEO statement
Feike Sijbesma, CEO/Chairman DSM Managing Board, commented: "I am pleased to report a good start to the year, with continued positive momentum, led by our Nutrition business, while Materials continues to demonstrate its resilience. Last year we benefitted from an exceptional growth and profit contribution in Nutrition following a supply disruption in the vitamin industry. When comparing our results excluding this special event, we realized strong, double digit Adjusted EBITDA growth in the first quarter against a very strong comparable period in the Underlying business.
With our business performance progressing in-line with our plans, we remain confident in our positive outlook for 2019. We are well positioned to deliver on our ambitious Strategy 2021 targets, which aim to deliver above market growth and strong financial performance, driven by our commitment to be a purpose led, performance driven science-based company in Nutrition, Health and Sustainable Living."
Outlook 2019
DSM increases its full year outlook 2019 and now expects to deliver a full year 2019 high single digit increase in Adjusted EBITDA compared to prior year Underlying Adjusted EBITDA (pre-temporary vitamin effect), together with an improvement in Adjusted Net Operating Free Cash Flow in line with its Strategy 2021 targets. This outlook excludes the impact of IFRS16 (see page 18).
Share Buy-Back program started
As per 1 April, DSM commenced its ordinary share repurchase program of an aggregate market value of €1 billion as announced on 14 February 2019, with the intention to reduce its issued capital. This program is in addition to the usual repurchase programs which DSM executes from time to time to cover commitments under share-based compensation plans and the stock dividend.
Note for the editors: for the full press release including all tables and a link to the Presentation to Investors, click here
Financial calendar
8 May 2019 Annual General Meeting of Shareholders
1 August 2019 Publication of the first half year results of 2019
5 November 2019 Publication of the results of the first nine months of 2019
13 February 2020 Publication of full year 2019 results
Additional Information
Today DSM will hold a conference call for media at 08:00 CET and a conference call for investors and analysts at 09:00 CET. 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, purpose-led, science-based company active in Nutrition, Health and Sustainable Living. DSM's purpose is to create brighter lives for all. DSM addresses with its products and solutions 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 delivers innovative 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 was founded in 1902 and 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.
PDF - https://mma.prnewswire.com/media/882815/DSM_Q1_2019_Results_Presentation.pdf
PDF - https://mma.prnewswire.com/media/882816/DSM_Q1_2019_results.pdf
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