Press Release
August 2, 2016
DSM reports Q2 2016 results
DSM reports a second consecutive strong quarter in 2016.
Heerlen, NL, 02 Aug 2016 07:00 CEST
Highlights
- DSM reports a second consecutive strong quarter in 2016
- Group net sales up at €1,994 million, with 5% organic growth, and EBITDA up 18%
- Nutrition: organic sales growth of 9%, EBITDA up 14%
- Materials: volumes up 5%, EBITDA up 10%
- H1 Group ROCE: improved to 10.5% (H1 2015: 7.4%) driven by higher EBIT
- Interim dividend of €0.55 per ordinary share
- Outlook revised upward
Key figures and indicators (continuing operations)
| in € million | Q2 2016 | Q2 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 1,994 | 1,965 | 1% | 6% | -1% | -4% | 0% |
| Nutrition | 1,295 | 1,247 | 4% | 7% | 2% | -5% | 0% |
| Materials | 640 | 664 | -4% | 5% | -7% | -2% | |
| EBITDA | 328 | 279 | 18% | ||||
| Nutrition | 237 | 208 | 14% | ||||
| Materials | 117 | 106 | 10% | ||||
| ROCE (%) | 10.5 | 7.4 |
CEO statement
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “Our positive momentum from Q1 continued and we are pleased to deliver another strong quarter. This was driven by good growth across our businesses and steady progress in our operations. Furthermore, we remain on track with our ambitious group-wide improvement and cost saving programs.
Materials performed particularly well, with good volume growth, notably in specialties, and a strong margin performance. This was supported by a favorable product mix, continued low input costs, and proactive margin management. In Nutrition, animal nutrition delivered high growth, benefitting in part from a favorable prior year comparison. We were also pleased with the continued progress in human nutrition, which delivered solid growth in line with our medium-term plans to outgrow the market.
During the quarter, uncertainty and volatility within the global macro-economic environment increased. While this remains a concern, we expect that for 2016 we will deliver ahead of our medium-term goals, given the strong performance of our business, underpinned by our continued focus on our improvement programs.”
Outlook 2016 revised upward
DSM aims to deliver increased full-year EBITDA and ROCE in line with the targets set out in its Strategy 2018: Driving Profitable Growth. While global macro-economic developments remain a concern, DSM now expects to deliver full-year 2016 results ahead of the medium term targets set out in its Strategy 2018, with an EBITDA growth for the year moving from high-single digit into the low to mid teens, and an increase in ROCE from high double-digit to over 200 basis points.
Key figures and indicators (cont’d)
| in € million | Q2 2016 | Q2 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 1,913 | 1,886 | 1% | 5% | -3% | -2% | 1% |
| Nutrition | 1,250 | 1,199 | 4% | 7% | -1% | -4% | 2% |
| Materials | 600 | 632 | -5% | 1% | -6% | 0% | |
| Innovation Center | 43 | 36 | 19% | 19% | 0% | 0% | |
| Corporate Activities | 20 | 19 | |||||
| Discontinued Operations | 0 | 506 |
| in € million | H1 2016 | H1 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 3,907 | 3,851 | 1% | 6% | -2% | -3% | 0% |
| Nutrition | 2,545 | 2,446 | 4% | 6% | 1% | -4% | 1% |
| Materials | 1,240 | 1,296 | -4% | 3% | -6% | -1% | |
| Innovation Center | 83 | 73 | 14% | 14% | 0% | -1% | 1% |
| Corporate Activities | 39 | 36 | |||||
| Discontinued Operations | 0 | 1,056 |
| in € million | Q2 2016 | Q2 2015 | % change | H1 2016 | H1 2015 | % change |
|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 1,994 | 1,965 | 1% | 3,907 | 3,851 | 1% |
| Nutrition | 1,295 | 1,247 | 4% | 2,545 | 2,446 | 4% |
| Materials | 640 | 664 | -4% | 1,240 | 1,296 | -4% |
| Innovation Center | 40 | 37 | 8% | 83 | 73 | 14% |
| Corporate Activities | 19 | 17 | 39 | 36 | ||
| Discontinued Operations | 0 | 550 | 0 | 1,056 | ||
| EBITDA - Continuing Operations | 328 | 279 | 18% | 624 | 527 | 18% |
| Nutrition | 237 | 208 | 14% | 462 | 403 | 15% |
| Materials | 117 | 106 | 10% | 212 | 192 | 10% |
| Innovation Center | 0 | -3 | 1 | -8 | ||
| Corporate Activities | -26 | -32 | -51 | -60 | ||
| Discontinued Operations | 0 | 53 | 0 | 91 | ||
| EBITDA margin - Continuing Operations | 16.4% | 14.2% | 16.0% | 13.7% | ||
| EBIT - Continuing Operations | 211 | 157 | 34% | 396 | 288 | 38% |
| Capital Employed - Continuing Operations1 | 7,616 | 7,897 | ||||
| Average Capital Employed1 | 7,542 | 7,824 | ||||
| ROCE - Continuing Operations (%)2 | 10.5% | 7.4% | ||||
| Profit for the period, before exceptional items - Continuing Operations | 135 | 110 | 23% | 244 | 179 | 36% |
| Profit for the period, after exceptional items - Total DSM | 135 | 101 | 220 | 30 | ||
| Net EPS before exceptional items - Continuing Operations | 0.76 | 0.63 | 21% | 1.36 | 1.02 | 33% |
| Net EPS after exceptional items - Total DSM | 0.76 | 0.56 | 1.22 | 0.14 | ||
| Cash Flow - Continuing Operations | 182 | 103 | 319 | 187 | ||
| Capital Expenditures - Continuing Operations3 | 78 | 107 | 177 | 208 | ||
| Net debt1 | 2,466 | 2,3214 |
1) Before reclassification to held for sale
2) ROCE calculated based on weighted average capital employed
3) Cash, net of customer funding
4) Year-end 2015
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 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.