Press Release
February 17, 2016
DSM reports Q4 2015 results
Q4 Group net sales up 6% to €1,926m and EBITDA up 3% to €261m.
Heerlen, NL, 17 Feb 2016 07:00 CET
Highlights
- Q4 Group: net sales up 6% to €1,926m and EBITDA up 3% to €261m
- Q4 Nutrition: 7% organic growth with strong volume growth in both Animal and Human Nutrition
- Q4 EBITDA: Nutrition up 3%, Performance Materials up 13%
- Strong Q4 operating cash flow of €313m supported by working capital reduction
- 2015: solid performance with Group net sales of €7,722m and EBITDA up 4% to €1,075m
- Proposed dividend stable at €1.65 per ordinary share
Key figures and indicators (continuing operations)
| in € million | Q4 2015 | Q4 2014 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 1,926 | 1,811 | 6% | 3% | -2% | 4% | 1% |
| Nutrition | 1,264 | 1,124 | 12% | 7% | 0% | 3% | 2% |
| Performance Materials | 601 | 618 | -3% | -1% | -7% | 5% | |
| EBITDA | 261 | 254 | 3% | ||||
| Nutrition | 206 | 200 | 3% | ||||
| Performance Materials | 90 | 80 | 13% | ||||
| ROCE (%)1 | 7.6% | 8.2% |
1) Based on full year
CEO statement
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “DSM’s fourth quarter performance, slightly ahead of expectations, was encouraging. We are particularly pleased with our progress in Nutrition, where both Animal and Human Nutrition delivered strong organic growth. Performance Materials continued to benefit from improved margins. In addition, our focus on cash flow and working capital efficiency contributed to a strong operating cash flow of €313 million.
This good progress in Q4 completes a year in which we achieved solid results. We delivered strong organic growth in Nutrition despite lower vitamin E prices. Cost savings and good margin management helped drive higher margins in Performance Materials, which also benefited from lower input costs. Currencies, while being a mixed bag, had a favorable effect overall despite the strengthening of the Swiss franc.
We expect to make further progress with our growth initiatives in 2016 both in Nutrition and Performance Materials although the macro-economic context remains challenging. These will be underpinned by our group-wide cost and productivity improvement programs as well as our disciplined focus on capital allocation and working capital. We are on track with these initiatives which will help drive improved profitability and return on capital that we target with our Strategy 2018.”
Outlook 2016
DSM aims to deliver increased full-year EBITDA and ROCE in line with the targets set out in its Strategy 2018: Driving Profitable Growth.
Key figures & indicators
| in € million | Q4 2015 | Q4 2014 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 1,926 | 1,811 | 6% | 3% | -2% | 4% | 1% |
| Nutrition | 1,264 | 1,124 | 12% | 7% | 0% | 3% | 2% |
| Performance Materials | 601 | 618 | -3% | -1% | -7% | 5% | |
| Innovation Center | 40 | 42 | -5% | -15% | 1% | 9% | |
| Corporate Activities | 21 | 27 | |||||
| Discontinued Operations | 0 | 563 |
| in € million | FY 2015 | FY 2014 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 7,722 | 7,051 | 10% | 3% | -2% | 8% | 1% |
| Nutrition | 4,963 | 4,335 | 14% | 6% | 0% | 7% | 1% |
| Performance Materials | 2,528 | 2,460 | 3% | 0% | -4% | 7% | |
| Innovation Center | 155 | 154 | 1% | -11% | 0% | 12% | |
| Corporate Activities | 76 | 102 | |||||
| Discontinued operations | 1,213 | 2,232 |
| in € million | Q4 2015 | Q4 2014 | % change | FY 2015 | FY 2014 | %change |
|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 1,926 | 1,811 | 6% | 7,722 | 7,051 | 10% |
| Nutrition | 1,264 | 1,124 | 12% | 4,963 | 4,335 | 14% |
| Performance Materials | 601 | 618 | -3% | 2,528 | 2,460 | 3% |
| Innovation Center | 40 | 42 | -5% | 155 | 154 | 1% |
| Corporate Activities | 21 | 27 | 76 | 102 | ||
| Discontinued Operations | 0 | 563 | 1,213 | 2,232 | ||
| EBITDA - Continuing Operations | 261 | 254 | 3% | 1,075 | 1,038 | 4% |
| Nutrition | 206 | 200 | 3% | 822 | 850 | -3% |
| Performance Materials | 90 | 80 | 13% | 384 | 323 | 19% |
| Innovation Center | -1 | -3 | -9 | -18 | ||
| Corporate Activities | -34 | -23 | -122 | -117 | ||
| Discontinued Operations | 1 | 34 | 95 | 128 | ||
| EBITDA margin - Continuing Operations | 13.6% | 14.0% | 13.9% | 14.7% | ||
| EBIT - Continuing Operations | 115 | 128 | -10% | 573 | 587 | -2% |
| Capital Employed - Continuing Operations | 7,553 | 7,431 | ||||
| ROCE - Continuing Operations (%)1 | 7.6% | 8.2% | ||||
| Profit for the period, before exceptional items - Cont. Ops. | 96 | 97 | -1% | 381 | 409 | -7% |
| Profit for the period, after exceptional items - Total DSM | 23 | -107 | 88 | 145 | -39% | |
| Net EPS before exceptional items - Cont. Ops. | 0.53 | 0.56 | -5% | 2.14 | 2.34 | -9% |
| Net EPS after exceptional items - Total DSM | 0.12 | -0.63 | 0.45 | 0.78 | -42% | |
| Cash Flow - Continuing Operations | 313 | 276 | 800 | 663 | ||
| Capital Expenditures - Continuing Operations2 | 147 | 182 | 468 | 451 | ||
| Net debt3 | 2,321 | 2,420 |
1) ROCE calculated based on weighted average capital employed
2) Cash, net of customer funding
3) Before reclassification to held for sale
In this report:
‘Organic sales growth’ is the total impact of volume and price/mix;
‘Discontinued operations’ comprises net sales and operating profit (before depreciation and amortization) of DSM Pharmaceutical Products up to and including 10 March 2014 as well as DSM Fibre Intermediates and DSM Composite Resins up to and including 31 July 2015;
‘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.