HEERLEN, the Netherlands, August 2, 2016 /PRNewswire/ --
- DSM reports a second consecutive strong quarter in 2016
- Group net sales up at €1,994 million, with 5% organic growth, and EBITDA up 18%
- Nutrition: organic sales growth of 9%, EBITDA up 14%
- Materials: volumes up 5%, EBITDA up 10%
- H1 Group ROCE: improved to 10.5% (H1 2015: 7.4%) driven by higher EBIT
- Interim dividend of €0.55 per ordinary share
- Outlook revised upward
Key figures and indicators (continuing operations)
in EUR million Q2 2016 Q2 2015 % Change Volume Price/mix FX Other Sales 1,994 1,965 1% 6% -1% -4% 0% Nutrition 1,295 1,247 4% 7% 2% -5% 0% Materials 640 664 -4% 5% -7% -2% EBITDA 328 279 18% Nutrition 237 208 14% Materials 117 106 10% ROCE (%) (1) 10.5 7.4
(1) January until June
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, benefitting 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
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.
Note for the editors: for the full text of the press release, click here>
Today DSM will hold a conference call for media from 08:00 to 08:30 and a conference call for investors and analysts from 09:00 to 10:00. Details on how to access these calls can be found on the DSM website, 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.
SOURCE Royal DSM NV