Royal DSM : DSM reports results first nine months 2019 results

1) Including IFRS 16 impact of €8 million in Q3 2019 and €22 million in the first nine months of 2019

Sales development

All comparisons are versus the Underlying business in the first nine months of 2018.

Nine months 2019 sales

Nutrition realized 4% organic growth against a strong +9% in same period last year. Total sales were 7% higher compared to first nine months 2018 including 1% from the consolidation of Andre Pectin and 2% from exchange rates driven by the US dollar.

Q3 2019 sales

Nutrition reported 4% organic growth, with volumes up 3% and prices +1%. Animal Nutrition sales were solid, Human Nutrition showed some softness and the other nutrition activities were strong, especially Food Specialties.

Nine months 2019 Adjusted EBITDA

The Adjusted EBITDA growth was 13%, including a 3% contribution from IFRS 16 and 2% from Andre Pectin (€19 million), driven by higher volumes, lower costs and a small positive foreign exchange effect. The adjusted EBITDA margin was 20.9% (including 0.5% impact from IFRS 16) versus 19.8% in same period last year.

Q3 2019 Adjusted EBITDA

Nutrition reported 12% growth in Adjusted EBITDA (including 3% from IFRS 16), in line with H1 2019, with same earnings drivers. The Q3 2019 Adjusted EBITDA margin was 20.5% (including 0.5% impact from IFRS 16) versus 19.7% in Q3 2018.

Partnership with Nenter

DSM completed the transaction with Nenter as first announced on 29 January 2019. The new subsidiary will produce vitamin E exclusively for DSM. The production facilities and related assets are currently being upgraded to ensure compliance with DSM's safety, health and environmental standards, to secure high-quality and sustainable supply of Vitamin E. The plant is not expected to resume production activities before Q3 2020.