DSM Reports 2017 Results
HEERLEN, Netherlands, February 14, 2018 /PRNewswire/ --
Full-year highlights
- Very strong 2016, well ahead of strategic goals
- Sales up 3% to €7,920m, with 4% organic growth
- Adjusted EBITDA1 up 17% to €1,262m
- ROCE up 280 bps to 10.4% driven by 38% increase in Adjusted EBIT 1
- Cash from operating activities up 27% to €1,018m
- Net profit of €629m compared to €92m in 2015
- Proposed dividend increase from €1.65 to €1.75 per ordinary share
Full year key figures and indicators (continuing operations)
in EUR million FY 2016 FY 2015 % Change Volume Price/mix FX Other
Sales 7,920 7,722 3% 4% 0% -1% 0%
Nutrition 5,169 4,963 4% 3% 2% -1% 0%
Materials 2,513 2,528 -1% 4% -5% -1% 1%
Adjusted EBITDA1 1,262 1,075 17%
Nutrition 931 822 13%
Materials 435 384 13%
EBITDA 1,174 956
ROCE (%) 10.4% 7.6%
1Main non-IFRS terms are explained on page 23 'Notes to the condensed financial statements'. A reconciliation is provided on pages 15 and 17.
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CEO statement
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: "With today's results, we are clearly delivering on the goals we set out at the end of 2015. We are pleased to report a very good year, in which we achieved strong EBITDA and ROCE growth, well ahead of the mid-term targets set out in Strategy 2018: Driving Profitable Growth.
Nutrition achieved a year of strong organic growth, in both Animal and Human Nutrition & Health. The Materials transformation is apparent in strong volume and margin growth, driven by our focus on specialties. In addition, we made good progress on our extensive improvement programs. Besides stepping up our financial performance, we were also able to drive our innovation and sustainability agenda in 2016, as well as taking further steps in anchoring the organizational agility and culture that we aim at.
While macro-economic conditions are uncertain, we are confident that in 2017 we will again deliver on our strategic objectives, despite a higher comparative base year. We will continue to execute our growth initiatives, and we are firmly on track with our ambitious, group-wide cost and productivity improvement programs. In addition, we will maintain our disciplined approach to capital allocation and working capital."
Outlook 2017
DSM aims to deliver high single-digit percentage Adjusted EBITDA growth and high double-digit basis point ROCE growth in line with the targets set out in its Strategy 2018.
Q4 highlights
- Sales up 5% to €2,015m, with 2% organic growth
- Adjusted EBITDA1 up 21% to €315m
- Nutrition: 2% organic sales growth; Adjusted EBITDA up 16%
- Materials: 7% volume growth; Adjusted EBITDA up 17%
- Cash from operating activities up 19% to €374m
Q4 2016 key figures and indicators (continuing operations)
in EUR million Q4 2016 Q4 2015 % Change Volume Price/mix FX Other
Sales 2,015 1,926 5% 2% 0% 2% 1%
Nutrition 1,321 1,264 5% 0% 2% 3% 0%
Materials 639 601 6% 7% -3% 1% 1%
Adjusted EBITDA1 315 261 21%
Nutrition 238 206 16%
Materials 105 90 17%
EBITDA 270 230
ROCE (%)2 10.4% 7.6%
1 Main non-IFRS terms are explained on page 23 'Notes to the condensed financial statements'. A reconciliation is provided on pages 15 and 17.
2 January until December
Note for the editors: for the full text of the press release see enclosed pdf or click here>
Financial calendar
Beginning of March Publication of Integrated Annual Report 2016
2 May 2017 Publication of Q1 2017 Results
3 May 2017 Annual General Meeting of Shareholders
5 May 2017 Ex-dividend
1 August 2017 Publication of Q2 2017 Results
2 November 2017 Publication of Q3 2017 Results
Additional Information
Today DSM will hold a conference call for media from 08:00 to 08:30 and a conference call for investors and analysts from 09:30 to 10:30. 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 science-based company active in health, nutrition and materials. By connecting its unique competences in life sciences and materials sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders simultaneously. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 25,000 employees. The company is listed on Euronext Amsterdam. More information can be found at http://www.dsm.com.
Forward Looking Statement
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.
Contact Information
Investor Relations
Dave Huizing
t. +31(0)45-578-28-64
Media Relations
Stephen Hufton
t. +31(0)45-578-7029
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