Performance Materials BU of DKSH manages well, integrating Acquisitions and increasing EBIT by 2.2%
Market expansion services provider (and speciality chemicals and ingredients distributor) DKSH AG (Zurich, Switzerland) today reported its financial results for 2020. Mostly due to COVID-19 and the pandemic-related restrictions, lockdown and ouright travel bans that resulted in GDP contraction, sales for the group decreased by 7.2% (-2.1% at constant exchange rat es / “CER”) to CHF 10’742 mn (from CHF 11’579 mn). As acquistions contributed 2.1%, the existing business declined by 4.2% for the group. The currency effect was negative, at -5.1%.
Operating profit (EBIT) was also down 3.0 % (up 2.4% at CER) at CHF 257.5 mn (against CHF 265.4 mn in 2019). Profit after Tax decreased by 8.0% (-2.9% at CER) to CHF 164.8 mn (was CHF 176.1 mn). Free cash flow increased 34.1% from CHF 156.7 mn to CHF 210.2 mn. The Board of Directors of DKSK will propose an increase in dividend of 2.6% to a new level of CHF 1.95 per share.
The Performance Materials BU (i.e. the specialty chemicals and ingredients distribution business) reported an increase in net sales to CHF 1’108.0 mn, 9.5% above 2019 (+ 15.1% at CER) based on an expansion of business with existing clients and the consolidation of business acquired at the end of 2019. EBIT was CHF 91.7 mn, up 2.2% from the CHF 89.7 mn in 2019 (+7.0% at CER). The unit particularly benefited from the acquisition of Axieo, which led to a significant increase of geografic coverage in Australia and New Zealand, although at a slight dilution of margins, DKSH said in the announcement.
Source: DKSH press release
HGE / DCG – 09.02.2021