Tag Archives: DKSH

DKSH announces the Acquisition of Right Base Chemicals in China

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Further Expansion of the Performance Materials Business Unit

Speciality chemicals  distributor DKSH AG (Zurich, Switzerland) has announced the acquisition of a majority share in specialty chemicals distributor Shanghai Right Base Chemicals Co. Ltd. [“RBC”] (Shanghai, China) from majority shareholder and General Manager Windy Wang and her co-investors for an undisclosed sum. The initial transaction involves the transfer of a 70% stake, with the remaining shares to be bought in five years.

 

Founded in 1994, RBC and its 60 employees cover the Eastern, Central, and South-Western regions of the Chinese market. The company primarily distributes Additives, Resins, and Colorants for Paints & Coating and Inks. With net sales of approx. EUR 23 mn (ca. CHF 25 mn at 1.00 CHF = 7.00 CNY) RBC has what DKSH describes as a “sound profitability and return on capital”. The investment is expected to be immediately earnings-accretive.

 

Closing of the transaction is expected for Q4-2021.  It is subject to certain customary closing conditions, DKSH said in the announcement. No further financial details were disclosed on the transaction.

 

Source: DKSH press release

 

HGE / DCG – 03.11.2021

DKSH reports solid Results for 2020, proposes higher Dividend

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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

DKSH elects Marco Gadola as new Chairman at Ordinary General Meeting

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Shareholders vote by Proxy at re-schedulded OGM and approve Dividend Payment

Market expansion services provider (and speciality chemicals  and ingredients distributor) DKSH AG (Zurich, Switzerland)  yesterday held its Ordinary General Meeting. Shareholders approved all motions by a large majority, including distribution of a dividend of CHF 1.90 per share and the election of Marco Gadola as Chairman of the Board of Directors. Due to the restrictions triggered by the COVID-19 pandemic, the shareholders could only vote by independent proxy. DKSH said 84.2 percent of the total share capital were represented that way.  The meeting had been re-scheduled from its earlier, original date in mid-March due to restrictions imposed by the Swiss Federal Government at the time.

The company also said it had recorded “solid results in the first four months of 2020 due to its resilient business model”, but did not elaborate on details. As it was not possible to assess the potential impact of COVID-19 on the busines, the full-year 2020 outlook was withdrawn.  DKSH plans to report its half-year results on 15. July and will hold a Capital Markets on 21. September. 

Source: DKSH press release

HGE / DCG – 14.05.2020

DKSH publishes Results for 2019

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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