DSM is positioned for strong EBITDA growth and increases dividend
“In the context of challenging macro-economic conditions, DSM delivered growth across all clusters in 2012, excluding caprolactam. Nutrition now represents more than 70% of total EBITDA and has become a high value."
x EBITDA full year 2012 of €1,109 million with growth in all clusters, except for caprolactam
x Robust performance of Life Sciences driven by Nutrition
x Materials Sciences performed well, except for caprolactam
x Strong cash generation from operating activities of €730 million in 2012
x Dividend increase proposed to €1.50 per ordinary share
x Outlook 2013: moving towards EBITDA of €1.4 billion
Commenting on the results, Feike Sijbesma, CEO/Chairman of the DSM Managing Board, said:
“In the context of challenging macro-economic conditions, DSM delivered growth across all clusters in
2012, excluding caprolactam. Nutrition now represents more than 70% of total EBITDA and has become a high value, global business with attractive growth prospects across the full value chain.”
“The significant strategic progress we made during 2012 through our value creating acquisitions and the profit improvement initiatives we have taken leave us well positioned to achieve our long term objectives. In 2013 we will focus on the operational performance and integration of the acquisitions we
completed in 2012 with special attention to capturing synergies. We expect strong EBITDA growth in 2013, moving towards €1.4 billion. The Board’s proposal to increase the dividend for the third consecutive year is testament to the stronger DSM we have built in recent years, with more stable growth and profitability going forward.”
Despite ongoing global economic headwinds, DSM continued to deliver solid operational results in Q4, generating €243 million in EBITDA, despite a €100 million lower contribution from its caprolactam activities compared to Q4 2011. For the full year EBITDA amounted to €1,109 million, 14% lower compared to 2011. Profit growth in all clusters was more than offset by approximately €300 million lower results from DSM’s caprolactam activities in Polymer Intermediates and Performance Materials.
Nutrition results in Q4 increased by 6% versus Q4 2011 and full year results increased by 8%, as a result of contributions from acquisitions and continued organic growth.
Pharma results in Q4 as well as for the full year 2012 were slightly above the level of the comparative periods of 2011.
Performance Materials recorded 21% higher EBITDA in Q4 compared to Q4 2011 due to higher volumes, improved margins and lower costs. Full year EBITDA was 4% lower due to lower margins in the polyamide-6 value chain (caprolactam effect) and lower volumes at DSM Dyneema.
As anticipated, Q4 and full year results at Polymer Intermediates declined significantly versus the same periods in 2011 mainly due to substantially lower caprolactam margins.
The Innovation Center improved its results for Q4 and the full year as a result of higher Biomedical sales supported by six months contribution from the Kensey Nash acquisition.
Q4 2012 EBITDA for Corporate Activities decreased compared to Q4 2011 mainly due to higher share-based payment costs and one-off items. Full year EBITDA remained at the same level as the previous year.
Cash provided by operating activities amounted to €730 million during 2012 versus €882 million in the prior year. Net debt increased by €1,350 million compared to year-end 2011 to a level of €1,668 million, mainly due to acquisitions, resulting in a more efficient capital structure.
Attached please find the consolidated release for your reference.