Pharmiweb ChannelsAll | PharmaCo | Clinical Research | R&D/BioTech | Sales/Mktg | Healthcare | Recruitment | Pharmacy | Medical Comms

Pharmiweb.com RSS Feed Pharmiweb.com RSS Feeds

Advertising

Press Release

DSM Reports Results of First Nine Months 2018

Royal DSM
Posted on: 31 Oct 18
DSM Reports Results of First Nine Months 2018

PR Newswire

HEERLEN, Netherlands, October 31, 2018

HEERLEN, Netherlands, October 31, 2018 /PRNewswire/ --

Highlights YTD 2018[1]

  • DSM reports a very good Q3, contributing to a strong first nine months
  • Strong organic sales growth in underlying business at 8%
  • Underlying Adjusted EBITDA growth at 7%, despite significant negative FX
  • ROCE of underlying business at 13.6%, up 130 bps
  • Total temporary vitamin price benefit of €290m on Adjusted EBITDA
  • Total Adjusted EBITDA up 34%; Net profit €821m
  • Cash from Operating Activities €933m up 51%
  • Full year outlook unchanged

     (Logo: https://mma.prnewswire.com/media/657851/DSM_Logo.jpg )
Key figures and indicators[2]

in EUR million January - September 2018 Jan-Sept % Change Underlying Temporary Total 2017 Under FX & Under- Temp- Total [1] business vitamin Group Repo- -lying [1] 'other' lying[1] orary Group effect rted organic [1] total vitamin growth growth effect Sales 6,644 415 7,059 6,456 8% -5% 3% 6% 9% Nutrition 4,278 415 4,693 4,151 9% -6% 3% 10% 13% Materials 2,215 2,215 2,132 7% -3% 4% 4% Adjusted EBITDA 1,162 290 1,452 1,086 7% 27% 34% Nutrition 847 290 1,137 786 8% 37% 45% Materials 393 393 369 7% 7% Innovation 1 1 5 Corporate -79 -79 -74 EBITDA 1,124 290 1,414 1,032 Adjusted EBITDA margin 17.5% 20.6% 16.8%


 

[ 1 ] Underlying (business) is defined in this press release as the performance measures sales and Adjusted EBITDA, corrected for DSM's best estimate of the temporary vitamin effect.

[ 2 ] Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.

CEO statement

Feike Sijbesma, CEO/Chairman DSM Managing Board, commented:

" We are delighted to report another very good quarter and are confident that we can achieve our full year outlook. The continued organic sales and Adjusted EBITDA growth rates in the underlying business position us well for a strong year which would once again exceed our Strategy 2018 targets.  

While there are currently uncertainties around macro-economic developments, we see continued good business conditions in Nutrition and most of our Materials businesses. The strategic plan that we have successfully delivered over the past few years has resulted in a robust portfolio of solution-led, higher value specialty products in Nutrition, Health & Sustainable Living. W e are well placed to move forward with our ambitious 2019-2021 strategy . A bove market, innovation-led organic growth, as well as inorganic growth will enable us to deliver upon our 2021 strategic targets . " 

Q3 Highlights[1]

  • DSM reports a very good Q3
  • Continued good underlying organic sales growth at 5%
  • Underlying Adjusted EBITDA growth at 7%, despite the negative FX impact
  • Nutrition (underlying business): 7% organic sales growth and 10% Adjusted EBITDA growth
  • Materials: 3% organic sales growth and Adjusted EBITDA growth of 3%
  • Additional temporary vitamin price benefit of €15m on Adjusted EBITDA
  • Total Adjusted EBITDA up 11%

Key figures and indicators[2]

in EUR million Q3 2018 Q3 % Change Under- Temp- Total 2017 Under- FX & Under- Temp- Total lying[1] orary Group Reported lying[1] 'other' lying[1] orary Group business vitamin organic [1] total vitamin effect growth [1] growth effect Sales 2,215 50 2,265 2,136 5% -1% 4% 2% 6% Nutrition 1,438 50 1,488 1.373 7% -2% 5% 3% 8% Materials 723 723 706 3% -1% 2% 2% Adjusted EBITDA 391 15 406 365 7% 4% 11% Nutrition 283 15 298 258 10% 6% 16% Materials 132 132 128 3% 3% Innovation 1 1 4 Corporate -25 -25 -25 EBITDA 370 15 385 343 Adjusted EBITDA margin 17.7% 17.9% 17.1%

[ 1 ] Underlying (business) is defined in this press release as the performance measures sales and Adjusted EBITDA, corrected for DSM's best estimate of the temporary vitamin effect.

[ 2 ] Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.

Outlook 2018

DSM confirms its full year outlook 2018 and expects an Adjusted EBITDA growth of approximately 25% and a related higher ROCE growth. This is based on:

  • a low double-digit Adjusted EBITDA growth in the underlying business at constant currencies,
  • a negative foreign exchange effect on Adjusted EBITDA of about €70 million, and
  • a total Adjusted EBITDA benefit for the full year estimated at €290 million from a temporary exceptional vitamin pricing environment

Note for the editors: For the full text of the press release see enclosed pdf or click here.

Financial calendar         

14 February 2019      Publication of full year 2018 results        

7 May 2019            Publication of the results of the first three months of 2019

8 May 2019            Annual General Meeting of Shareholders

1 August 2019         Publication of the first half year results of 2019

5 November 2019       Publication of the results of the first nine months of 2019

Additional Information  

Today DSM will hold a conference call for media at 08:00 and a conference call for investors and analysts at 09:00. 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 purpose-led global science-based company in Nutrition, Health and Sustainable Living. DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. DSM delivers innovative business solutions for human nutrition, animal nutrition, personal care and aroma, medical devices, green products and applications, and new mobility and connectivity. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 23,000 employees. The company is listed on Euronext Amsterdam. More information can be found at http://www.dsm.com.

Find us on:

Forward Looking Statements  

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. The English language version of the press release is leading.

 

PDF - https://mma.prnewswire.com/media/777287/Presentation_to_Investors_9M_2018.pdf

PDF - https://mma.prnewswire.com/media/777288/DSM_reports_results_first_nine_months_2018.pdf

 

Contact Information
Investor Relations    
Dave Huizing
t. +31-(0)-45-578-2864
e. investor.relations@dsm.com
   
Media Relations    
Lieke de Jong
t. +31-(0)-45-578-2420
e. media.contacts@dsm.com

 

    PRN NLD

PR Newswire
www.prnewswire.com

Last updated on: 31/10/2018

Advertising
Site Map | Privacy & Security | Cookies | Terms and Conditions

PharmiWeb.com is Europe's leading industry-sponsored portal for the Pharmaceutical sector, providing the latest jobs, news, features and events listings.
The information provided on PharmiWeb.com is designed to support, not replace, the relationship that exists between a patient/site visitor and his/her physician.