Outlook 2021: Group Outlook updated to reflect stronger Materials recovery
Key figures – continuing operations2
in € million
Adjusted EBITDA margin
1 Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects results from usual operations. Organic sales growth is the total impact of volume and price/mix. Adjusted Net Operating Free Cash Flow is the cash flow from operating activities, corrected for the cash flow of the APM adjustments, minus the cash flow of capital expenditures and drawing rights.
2 Results and KPIs throughout this document reflect continued operations, excluding the Resins & Functional Materials and associated businesses which were classified as 'held for sale' in September 2020. The sale was finalized on 1 April 2021.
Co-CEOs statement Geraldine Matchett and Dimitri de Vreeze, Co-CEOs, commented: "We made a very good start to the year despite the ongoing challenging COVID-19 environment. Our Nutrition business continued to perform well, with positive momentum in line with the trading conditions we saw during the second half of 2020.
The strong recovery of our Materials business at the end of last year has continued into Q1, supported by ongoing restocking by customers. Our increasing confidence in the recovery for Materials, combined with our unchanged positive outlook for Nutrition, leads us to increase our overall outlook for the Group for 2021."
Outlook 2021 For the full year, DSM continues to expect an Adjusted EBITDA increase in Nutrition at the upper end of its mid-term strategic ambition of high single digit growth. Together with a stronger recovery in Materials than foreseen at the FY 2020 results release, DSM now expects an Adjusted EBITDA growth rate for the Group moving towards the mid-teens, with a continued good Adjusted Net Operating Free Cash Flow.
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Additional Information Starting in 2021, DSM changed its reporting cycle, in line with the established practice of many of its consumer ingredients peers. From Q1 2021, DSM will provide a trading update for Q1 and Q3. DSM will organize media and analyst calls during half year and full year.
DSM – Bright Science. Brighter Living.™ Royal DSM is a global, purpose-led, science-based company active in Nutrition, Health and Sustainable Living. DSM's purpose is to create brighter lives for all. DSM addresses with its products and solutions some of the world's biggest challenges while simultaneously creating economic, environmental and societal value for all its stakeholders – customers, employees, shareholders, and society at large. DSM delivers innovative 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 was founded in 1902 and is listed on Euronext Amsterdam. More information can be found at www.dsm.com.
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.