Press Release
November 12, 2016
DSM reports Q3 2016 results
DSM reports another strong quarter in Q3 2016.
Heerlen, NL, 03 Nov 2016 07:00 CET
Highlights
- DSM reports another strong quarter
- Group sales up at €1,998m, with 3% organic growth, and EBITDA up 13% to €323m
- Nutrition: 5% organic sales growth, EBITDA up 8%
- Materials: 5% volume growth, EBITDA up 16%
- Group ROCE improved to 10.6% (end Q3 2015: 7.9%) driven by higher EBIT
- Net profit up 38% to €146m (€322m after exceptionals, including proceeds from Patheon IPO)
- Outlook maintained
Key figures and indicators (continuing operations)
| in € million | Q3 2016 | Q3 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales | 1,998 | 1,945 | 3% | 3% | 0% | 0% | 0% |
| Nutrition | 1,303 | 1,253 | 4% | 3% | 2% | -1% | 0% |
| Materials | 634 | 631 | 0% | 5% | -5% | -1% | 1% |
| EBITDA | 323 | 287 | 13% | ||||
| Nutrition | 231 | 213 | 8% | ||||
| Materials | 118 | 102 | 16% | ||||
| ROCE (%)1 | 10.6 | 7.9 |
1) January until September
CEO statement
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: “We are pleased to report another quarter of strong operational and financial progress. This was driven by both Materials and Nutrition, reflecting the progress we are making on delivering on our Strategy 2018 through our growth initiatives as well as ambitious improvement and cost savings actions.
Materials had a quarter of strong volume growth driven again by specialties, enhanced by particularly high margins as a result of a very favorable product mix and pro-active margin management, while still benefiting from low input costs. Nutrition delivered good EBITDA growth, despite additional costs in the quarter. Animal Nutrition benefited from increased vitamin prices, with solid volume growth against a tougher prior year comparison. Human Nutrition delivered strong volume growth.
While the global macro-economic environment remains a concern, we continue to expect that for the full year 2016, we will deliver ahead of our medium-term goals, given the strong ongoing performance of our business, underpinned by our continued focus on the improvement programs.”
Outlook 2016 maintained
DSM continues to expect to deliver full-year 2016 results ahead of the medium-term targets set out in its Strategy 2018, with a mid-teens EBITDA growth and an increase in ROCE of over 200 basis points.
Key figures & indicators
| in € million | Q3 2016 | Q3 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 1,998 | 1,945 | 3% | 3% | 0% | 0% | 0% |
| Nutrition | 1,303 | 1,253 | 4% | 3% | 2% | -1% | 0% |
| Materials | 634 | 631 | 0% | 5% | -5% | -1% | 1% |
| Innovation Center | 43 | 42 | 2% | 2% | 0% | 0% | 0% |
| Corporate Activities | 18 | 19 | |||||
| Discontinued operations | 0 | 157 |
| in € million | Jan - Sep 2016 | Jan - Sep 2015 | % change | Volume | Price/mix | FX | Other |
|---|---|---|---|---|---|---|---|
| Sales - Continuing operations | 5,905 | 5,796 | 2% | 5% | -1% | -2% | 0% |
| Nutrition | 3,848 | 3,699 | 4% | 5% | 1% | -3% | 1% |
| Materials | 1,874 | 1,927 | -3% | 3% | -6% | -1% | 1% |
| Innovation Center | 126 | 115 | 10% | 10% | 0% | -1% | 1% |
| Corporate Activities | 57 | 55 | |||||
| Discontinued operations | 0 | 1,213 |
| in € million | Q3 2016 | Q3 2015 | % change | Jan - Sep 2016 | Jan - Sep 2015 | % change |
|---|---|---|---|---|---|---|
| Sales - Continuing Operations | 1,998 | 1,945 | 3% | 5,905 | 5,796 | 2% |
| Nutrition | 1,303 | 1,253 | 4% | 3,848 | 3,699 | 4% |
| Materials | 634 | 631 | 0% | 1,874 | 1,927 | -3% |
| Innovation Center | 43 | 42 | 2% | 126 | 115 | 10% |
| Corporate Activities | 18 | 19 | 57 | 55 | ||
| Discontinued Operations | 0 | 157 | 0 | 1,213 | ||
| EBITDA - Continuing Operations | 323 | 287 | 13% | 947 | 814 | 16% |
| Nutrition | 231 | 213 | 8% | 693 | 616 | 13% |
| Materials | 118 | 102 | 16% | 330 | 294 | 12% |
| Innovation Center | 1 | 0 | 2 | -8 | ||
| Corporate Activities | -27 | -28 | -78 | -88 | ||
| Discontinued Operations | 0 | 3 | 0 | 94 | ||
| EBITDA margin - Continuing Operations | 16.2% | 14.8% | 16.0% | 14.0% | ||
| EBIT - Continuing Operations | 205 | 170 | 21% | 601 | 458 | 31% |
| Capital Employed - Continuing Operations1 | 7,620 | 7,558 | ||||
| Average Capital Employed1 | 7,561 | 7,757 | ||||
| ROCE - Continuing Operations (%)2 | 10.6% | 7.9% | ||||
| Profit for the period, before exceptional items - Continuing Operations | 146 | 106 | 38% | 390 | 285 | 37% |
| Profit for the period, after exceptional items - Total DSM | 322 | 33 | 542 | 63 | ||
| Net EPS before exceptional items - Continuing Operations | 0.81 | 0.59 | 37% | 2.17 | 1.61 | 35% |
| Net EPS after exceptional items - Total DSM | 1.82 | 0.19 | 3.04 | 0.33 | ||
| Cash Flow - Continuing Operations | 325 | 300 | 644 | 487 | ||
| Capital Expenditures - Continuing Operations3 | 128 | 113 | 305 | 321 | ||
| Net debt1 | 2,054 | 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:
a) 'Organic sales growth’ is the total impact of volume and price/mix;
b) ‘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;
c) ‘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.