DSM: reports second quarter 2016 results

Heerlen / NL. (dsm) Royal DSM N.V., the global Life Sciences and Materials Sciences company, reported its results for Q2/2016. Highlights:

• The Group reports a second consecutive strong quarter in 2016.
• Group net sales up at 1’994 million EUR, with 5 percent organic growth, and Ebitda up 18 percent.
• Nutrition: organic sales growth of 9 percent, Ebitda up 14 percent.
• Materials: volumes up 5 percent, Ebitda up 10 percent.
• H1 Group ROCE: improved to 10.5 percent (H1 2015: 7.4 percent) driven by higher Ebit.
• Interim dividend of 0.55 EUR per ordinary share.
• Outlook revised upward.

Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: «Our positive momentum from Q1 continued and we are pleased to deliver another strong quarter. This was driven by good growth across our businesses and steady progress in our operations. Furthermore, we remain on track with our ambitious group-wide improvement and cost saving programs.

«Materials performed particularly well, with good volume growth, notably in specialties, and a strong margin performance. This was supported by a favorable product mix, continued low input costs, and proactive margin management. In Nutrition, animal nutrition delivered high growth, benefiting in part from a favorable prior year comparison. We were also pleased with the continued progress in human nutrition, which delivered solid growth in line with our medium-term plans to outgrow the market.

«During the quarter, uncertainty and volatility within the global macro-economic environment increased. While this remains a concern, we expect that for 2016 we will deliver ahead of our medium-term goals, given the strong performance of our business, underpinned by our continued focus on our improvement programs».

Outlook 2016 revised upward

DSM aims to deliver increased full-year Ebitda and ROCE in line with the targets set out in its Strategy 2018: Driving Profitable Growth. While global macro-economic developments remain a concern, DSM now expects to deliver full-year 2016 results ahead of the medium term targets set out in its Strategy 2018, with an Ebitda growth for the year moving from high-single digit into the low to mid teens, and an increase in ROCE from high double-digit to over 200 basis points.