Performance Materials BU of DKSH reaches CHF 1 Billion Turnover Threshold
Market expansion services provider (and speciality chemicals and ingredients distributor) DKSH AG (Zurich, Switzerland) yesterday reported its financial results for 2019. Sales for the group increased by 2.1% (0.3% at constant exchange rates / “CER”) to CHF 11’579 mn (11.58 bn). This includes the impact of both, acquistions and divestments and reflects organic growth at a level of 3.1%.
Operating profit (EBIT) was virtually flat at +0.7% (-1.3% at CER) at CHF 265.4 (against CHF 263.6 mn in 2018). Profit after Tax decreased by 32.3 (33.9% at CER) to CHF 176.1 mn. In 2018 this line item had benefitted from the one-time gain of CHF 75.2 mn from the divestment of the Healthcare business in China. Free cash flow increased 11.5% from CHF 140.6 mn to CHF 156.7 mn. The Board of Directors of DKSK will propose an increase in dividend of 2.7% to CHF 1.90 per share.
The Performance Materials BU (i.e. the specialty chemicals and ingredients distribution business) reported an increase net sales to a level of CHF 1’011.5 mn, 5.3% above 2018 (+ 5.2% at CER). EBIT increased much stronger to CHF 89.7 mn, up 19.4% from the CHF 75.1 mn in 2018 (+17.8% at CER). The unit “successfully expanded business with existing and new clients, realising scale effects”, DKSH said in the statement. With the acquistion of Dols International (Roermond, The Netherlands), DKSH has expanded its market coverage in Europe.
Source: DKSH press release
HGE / DCG – 14.02.2020