Learnings from the Earnings – Who’s Up? Who’s Down?

DSM

The Top Line. DSM reports a very strong year, including a robust Q4. Underlying business -Strong organic sales growth of 6%, Adjusted EBITDA growth of 6%; 10% adjusted for FX, ROCE of 13.3%, up 100 bps.      Total business (including temporary vitamin effect) – Adjusted EBITDA up 26%, including €290m temporary vitamin effect, Adjusted Net profit of €1,034m, up 46%, with Net profit of €1,079m, Cash from Operating Activities €1,391m, up 40%, 25% dividend increase from €1.85 to €2.30 per ordinary share.

The Big Highlights. DSM outperformed on its financial targets on Adjusted EBITDA growth and ROCE growth, outpaced market growth in both Nutrition and Materials segments, executed extensive cost-reduction and improvement programs which delivered run-rate cumulative savings of ~€275 million at the end of 2018 versus the 2014 baseline, and extracted significant value from its joint venture partnerships Patheon, ChemicaInvest and DSM Sinochem Pharmaceuticals. The combined proceeds of these divestments were around €3 billion. DSM plans to divest its remaining minority shares in AOC Aliancys (18.9%) and AnQore (35%) in the coming period.

“This has been again a record year in which we successfully completed Strategy 2016-2018, outperforming our ambitious financial and sustainability targets. We have created a strong platform of solution-led, higher value specialty products in Nutrition, Health & Sustainable Living. This has positioned the company well to drive continued above market organic growth and deliver further improvement in profitability, shareholder return and sustainability as we execute Strategy 2021 Purpose led, Performance driven.” – Feike Sijbesma, CEO/Chairman of the Managing Board

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