- DSM reports a solid Q4 with EBITDA of €243 million
- EBITDA full year 2012 of €1,109 million with growth in all clusters, except for caprolactam
- Robust performance of Life Sciences driven by Nutrition
- Materials Sciences performed well, except for caprolactam
- Strong cash generation from operating activities of €730 million in 2012
- Dividend increase proposed to €1.50 per ordinary share
- 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 percent 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 activitiescompared to Q4 2011. For the full year EBITDA amounted to €1,109 million, 14 percent lower compared to 2011.Profit growth in all clusters was more than offset by approximately €300 million lower results from DSM’scaprolactam activities in Polymer Intermediates and Performance Materials.
Nutrition results in Q4 increased by 6 percent versus Q4 2011 and full year results increased by 8 percent, 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 percent higher EBITDA in Q4 compared to Q4 2011 due to higher volumes, improved margins and lower costs. Full year EBITDA was 4 percent 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.
Fourth quarter organic sales growth was 1 percent compared to Q4 2011 with volume growth (4 percent) partially offset by lower prices (-3 percent). Reported sales were positively impacted by favorable exchange rates (1 percent) and the acquisition of Ocean Nutrition Canada.
Human Nutrition & Health sales were up due to slightly higher prices and good volume growth. Premixes and Nutritional Lipids recorded double digit growth. Ocean Nutrition Canada showed strong sales momentum with the first synergy sales being realized. The Q4 results of Ocean Nutrition Canada were in line with expectations with sales of €36 million and EBITDA of €11 million.
Animal Nutrition & Health sales were somewhat lower due to stable volumes and a negative price and mix effect.
Personal Care showed stable volumes with somewhat higher prices.
DSM Food Specialties continued its growth especially in enzymes and savory ingredients.
EBITDA for the fourth quarter was €204 million, a 6 percent increase compared to the same quarter of 2011, mainly driven by the contribution of Ocean Nutrition Canada. The EBITDA margin was stable at 22.1 percent.
Full year organic growth was 2 percent driven by volumes and stable prices. EBITDA was €793 million and increased by 8 percent as a result of continued growth in advanced forms, premixes and nutritional lipids and contributions from acquisitions.