HEERLEN, Netherlands, May 8, 2018 /PRNewswire/ --
Royal DSM today issues its full Q1 2018 results, which are in line with the previously announced preliminary figures for Q1 2018 on 12 April 2018.
- Continued strong organic sales growth in underlying business estimated at 11%
- Adjusted EBITDA growth of underlying business estimated at 8%, despite significant FX headwind
- ROCE of underlying business estimated at 13.3%, up 200 bps
- Additional temporary vitamin price benefit estimated at €165m on Adjusted EBITDA
- Total Adjusted EBITDA up 56% and Net profit up 122% to €331m
- Cash from operating activities up 58%, amounting to €310m
- Increased full year outlook confirmed
Key figures and indicators
in EUR million Q1 2018 Q1 2017 % Change Underlying FX & Underlying Temporary Underlying Temporary  'other'     vitamin Total organic  total vitamin Total business effect Group Reported growth growth effect Group Sales 2,215 220 2,435 2,159 11% -8% 3% 10% 13% Nutrition 1,430 220 1,650 1,398 12% -10% 2% 16% 18% Materials 738 738 701 11% -6% 5% 5% Adjusted EBITDA 373 165 538 345 8% 48% 56% Nutrition 277 165 442 257 8% 64% 72% Materials 126 126 113 12% 12% Innovation -1 -1 1 Corporate -29 -29 -26 Adjusted EBITDA margin 16.8% 22.1% 16.0%
 Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.
 Underlying business is defined in this press release as the performance measures sales and adjusted EBITDA, corrected for DSM's best estimate of the vitamin effect, which is expected to be temporary.
Feike Sijbesma, CEO/Chairman DSM Managing Board, commented: "We are very pleased that the strong underlying performance of our business continues, with growth well above market. In addition, we are currently benefitting from substantially higher prices in some vitamins due to exceptional supply disruptions in the industry, which are expected to be temporary and heavily weighted towards the first half of the year. These two combined resulted in a significantly higher outlook for the full year 2018, which we announced with our preliminary Q1 2018 results on 12 April 2018."
DSM confirms its increased full year outlook 2018, as announced on 12 April 2018, and expects an Adjusted EBITDA growth towards 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 €80 million, and
- an additional Adjusted EBITDA benefit estimated at €250 - 300 million from an exceptional vitamin pricing environment, that is expected to be temporary and heavily weighted towards the first half of the year
Note for the editors: for the full text of the press release see enclosed pdf or click here>
9 May 2018 Annual General Meeting of Shareholders
11 May 2018 Ex-dividend
20 June 2018 Capital Markets Day
1 August 2018 Publication of the half year results of 2018
31 October 2018 Publication of the results of the first nine months of 2018
14 February 2019 Publication of full year 2018 results
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 global science-based company active in health, nutrition and materials. By connecting its unique competences in life sciences and materials sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders simultaneously. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 25,000 employees. The company is listed on Euronext Amsterdam. More information can be found at http://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.
Lieke de Jong
SOURCE Royal DSM