Press Release

November 2, 2017

DSM reports results first nine months 2017

Strong performance in Q3 2017, contributing to very good first nine months.

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Heerlen, NL, 02 Nov 2017 07:00 CET

Highlights YTD 2017
  • Strong performance in Q3, contributing to very good first nine months
  • Sales up 9% to €6,456m, with 8% organic growth
  • Adjusted EBITDA up 15% to €1,086m, driven by both Nutrition and Materials
  • ROCE up 170 bps to 12.3%
  • Adjusted Net profit up 29% to €504m
  • Total Net profit of €1,603m, including gain on Patheon disposal of €1,250m
  • Outlook 2017 unchanged
Key figures and indicators
in € millionJan - Sep 2018Jan - Sep 2017% changeVolumePrice/mixFXOther
Sales6,4565,9059%7%1%1%0%
Nutrition4,1513,8488%6%1%1%0%
Materials2,1321,87414%8%5%0%1%
Adjusted EBITDA (cont. operations)11,08694715%    
Nutrition78669313%    
Materials36933012%    
EBITDA (cont. ops)1,032904     
ROCE (%)12.3%10.6%     

1) Adjusted EBITDA (and adjusted Net profit) are Alternative Performance Measures (APM’s) that reflect continuing operations.
See page 11 of PDF version for definition and reconciliation

CEO statement

Feike Sijbesma, CEO and Chairman of the DSM Managing Board, commented: “We are pleased to report another strong quarter, resulting in a very good performance during the first nine months. Nutrition and Materials once again delivered organic growth rates well above their respective markets, with particularly good volume growth.

These results demonstrate significantly improved operational and financial performance, well ahead of plan, with all businesses delivering on their ambitious growth initiatives, and we are firmly on track with our cost-reduction and efficiency improvement programs. Furthermore, we successfully divested our share in Patheon ahead of schedule.

DSM confirms its full year 2017 outlook, despite slightly less favorable currency developments. In addition, with all of these developments ahead of plan we are bringing forward our regular strategic review process for the period beyond 2018 and anticipate communicating the results before mid-year 2018, as announced at our September Investor Event.”

Outlook 2017 unchanged

DSM expects to deliver full-year 2017 results above the targets set out in its Strategy 2018, with an EBITDA growth for the year slightly up from high single-digit to double digit, and with a ROCE increase from double digit basis points to over 100 basis points.

Q3 Highlights
  • DSM reports another strong quarter in Q3
  • Sales up 7% to €2,136m, with 10% organic growth
  • Adjusted EBITDA up 13% to €365m
  • Nutrition: 8% organic sales growth; Adjusted EBITDA up 12%
  • Materials: 9% volume growth; Adjusted EBITDA up 8%
Key figures & indicators
in € millionQ3 2017Q3 2016% changeVolumePrice/mixFXOther
Sales2,1361,9987%9%1%-3%0%
Nutrition1,3731,3035%9%-1%-3%0%
Materials70663411%9%5%-3%0%
Adjusted EBITDA (cont. operations)136532313%    
Nutrition25823112%    
Materials1281188%    
EBITDA (cont. ops)343301     
ROCE (%)212.3%10.6%     

1) Adjusted EBITDA (and adjusted Net profit) are Alternative Performance Measures (APM’s) that reflect continuing operations.
See page 11 of PDF version for definition and reconciliation
2) January up until September

Key figures & indicators
in € millionJan - Sep 2017Jan - Sep 2016% changeVolumePrice/mixFXOther
Sales6,4565,9059%7%1%1%0%
Nutrition4,1513,8488%6%1%1%0%
Materials2,1321,87414%8%5%0%1%
Innovation Center126126     
Corporate Activities4757     
in € millionQ3 2017Q3 2016% changeVolumePrice/mixFXOther
Sales2,1361,9987%9%1%-3% 
Nutrition1,3731,3035%9%-1%-3% 
Materials70663411%9%5%-3% 
Innovation Center4243     
Corporate Activities1518     
in € millionJan - Sep 2017Jan - Sep 2016% changeQ3 2017Q3 2016% change
Sales6,4565,9059%2,1361,9987%
Adjusted EBITDA (continued operations)1,08694715%36532313%
Nutrition78669313%25823112%
Materials36933012%1281188%
Innovation Center52 41 
Corporate Activities-74-78 -25-27 
Adjusted EBITDA margin16.8%16.0% 17.1%16.2% 
EBITDA (continued operations)1,032904 343301 
Adjusted EBIT (continued operations)71760119%23920517%
EBIT (continued operations)647546 206171 
Capital Employed7,6207,620    
Average Capital Employed7,7797,561    
ROCE (%)12.3%10.6%    
Effective tax rate18.0%18.5%    
Adjusted net profit (continued operations)50439029%16614614%
Net profit - Total DSM1,603542196%1,291322301%
Adjusted net EPS2.812.1729%0.910.8112%
Net EPS - Total DSM9.093.04 7.341.82 
Cash Flow619644-4%290325-11%
Capital Expenditures1384305 134128 
Net debt7032,054    

1) Cash, net of customer funding
In this report:
'Organic sales growth’ is the total impact of volume and price/mix;
‘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.