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16.07.2024 07:00:51 - dpa-AFX: EQS-Adhoc: DKSH Reports Core EBIT Growth of 8.2% at CER for H1 - Reaffirming Consistent Track Record of Creating Value in Asia and Beyond (english)
DKSH Reports Core EBIT Growth of 8.2% at CER for H1 - Reaffirming Consistent
Track Record of Creating Value in Asia and Beyond
Ad hoc announcement pursuant to Art. 53 LR
* Continued value creation in H1 2024
* Core EBIT increased by 8.2% (at CER1) to CHF 163.6 million
* Core EBIT margin expanded by 10 basis points to 3.0%
* Net sales grew by 3.3% (at CER) to CHF 5.4 billion
* Consumer Goods Core EBIT margin reached mid-term target of 2.5%
* Strong Free Cash Flow of CHF 160.8 million (cash conversion 136.0%)
* Confirmed outlook for 2024
* Capital Markets Day on November 18 in London
Zurich, Switzerland, July 16, 2024 - DKSH's first-half 2024 results reaffirm
our consistent track record of delivering value for our clients, customers,
employees, and shareholders through growth, margin expansion, and effective
cash generation. Net sales reached CHF 5.4 billion (3.3% at CER1) and Core
EBIT was CHF 163.6 million (8.2% at CER) with a 10 basis points higher Core
EBIT margin. Free Cash Flow remained strong at CHF 160.8 million and Core
profit after tax increased by 16.7% (at CER).
DKSH CEO, Stefan P. Butz, said: "I am delighted to report that in a
continuously uncertain environment, DKSH delivered growth and further margin
expansion in the first half of 2024. Capitalizing on diligent strategy
execution and our resilient business model, our valued employees across all
Business Units and enabling Functions contributed to the result. We remained
the trusted partner for our clients and customers and continued to fulfill
our purpose of enriching people's lives. Based on our good first-half
results, we confirm our outlook for 2024. I would also like to welcome
Medipharm and Elite Organic who joined the DKSH family in the first half of
the year."
DKSH Group
DKSH Group net sales increased by 3.3% (at CER) to CHF 5.4 billion in the
first half of 2024. Organic growth contributed the most with 2.3%,
acquisitions added 1.0%, and exchange rates -6.5% as the Swiss franc
remained stronger than most currencies in which we operate compared to the
base period in 2023. The Group Core EBIT reached CHF 163.6 million, 8.2%
higher than in H1 2023 (at CER). Core EBIT margin increased from 2.9% to
3.0%. Core profit after tax was CHF 118.2 million, up 16.7% (at CER) vs.
last year. Free Cash Flow remained strong reaching CHF 160.8 million with a
cash conversion of 136.0%.
Business Unit Healthcare
Backed by attractive market fundamentals, Business Unit Healthcare continued
its path of profitable growth. With an above-GDP net sales growth of 5.8%
(CER) including market share gains in key markets as well as a Core EBIT
growth of over 13% (at CER), the Business Unit improved the Core EBIT margin
to 3.0% (+20 basis points). One major factor for these strong results was
the expansion with new and existing clients in key markets such as Thailand,
Malaysia, and Taiwan. Business Unit Healthcare further focused on its higher
margin businesses, such as Full Agency Services and Own Brands. The Business
Unit will continue expanding its position and driving into higher-value
segments and services.
Business Unit Consumer Goods
Business Unit Consumer Goods achieved a Core EBIT increase of 17.0% (at CER)
and drove a net sales growth of 2.0% (at CER) to CHF 1.7 billion, aided by a
combination of increased focus on sales effectiveness for outlets and
portfolio prioritization, as well as business development for new client
acquisition. The focus has also been on strengthening KPI-based performance
management, as well as cost efficiencies. DKSH achieved its mid-term Core
EBIT target of 2.5% in H1 2024. The successful transformation of the Unit
positions the business for further profitable growth.
Business Unit Performance Materials
Business Unit Performance Materials' net sales decline of 2.6% (at CER) was
in line with expectations. All regions performed better in the first half of
2024 than in the second half of 2023 with a sequential improvement quarter
over quarter. Core EBIT was CHF 58.6 million, driven by gross margin
expansion, disciplined pricing, and inventory management as well as an
optimized cost structure. DKSH achieved a Core EBIT margin increase of
around 15 basis points to 8.3% (Core EBITA margin increase of around 15
basis points to 8.9%) and remains cautiously optimistic of a gradual rise in
demand.
Business Unit Technology
Business Unit Technology achieved a net sales growth of 3.3% (at CER),
supported by the recent acquisition of Bio-Strategy. The Core EBIT of CHF
8.6 million compares to an exceptionally strong first half of 2023. With
some project phasing into the second half of 2024, further market
consolidation potential, and a continued focus on scientific solutions,
precision machinery, and equipment for the semiconductor and electronics
industry, Business Unit Technology is expected to achieve a stronger second
half of 2024.
Outlook Confirmed
DKSH is committed to deliver GDP+2 sales growth (at CER) and expects Core
EBIT (at CER) in 2024 to be higher than in 2023 based on its resilient
business model, successful strategy execution, and strong balance sheet.
This outlook assumes economic growth in Asia Pacific, and barring any
unforeseen events. The Group remains confident about Asia's long-term
potential and is well-positioned to benefit from favorable market, industry,
and M&A consolidation trends.
Capital Markets Day 2024
DKSH is pleased to announce that its Capital Markets Day 2024 will take
place in London on November 18, 2024. The Capital Markets Day is followed by
an analysts' and investors' dinner in the evening. The invitation to the
event including further details will be sent out in the coming weeks.
Further Information
The conference and webcast for media and investors will take place today at
10:00 a.m. CEST. The Half-Year Report 2024 and recording of the webcast will
be available on the DKSH website.
1 Constant exchange rates (CER): 2024 figures converted at 2023 exchange
rates.
* For the definition of Alternative Performance Measures (APM), see
Half-Year Report 2024.
Appendix:
Net Sales Growth Components
2 Weighted GDP calculation based on DKSH 2023 Net sales market split.
About DKSH
DKSH's purpose is to enrich people's lives. For almost 160 years, DKSH has
been delivering growth for companies in Asia and beyond across its Business
Units Healthcare, Consumer Goods, Performance Materials, and Technology. As
a leading Market Expansion Services provider, DKSH offers sourcing, market
insights, marketing and sales, eCommerce, distribution and logistics as well
as after-sales services. DKSH is a participant of the United Nations Global
Compact and adheres to its principles-based approach to responsible
business. Listed on the SIX Swiss Exchange, DKSH operates in 36 markets with
29,040 specialists, generating net sales of CHF 11.1 billion in 2023.
www.dksh.com
For further information, please contact:
DKSH Holding Ltd.
Till Leisner
Head, Investor & Media Relations, Sustainability
Phone +41 44 386 7315
till.leisner@dksh.com
Melanie Grüter
Manager, Group Media Relations
Phone +41 44 386 7211
melanie.grueter@dksh.com
____________________________________________________________
1946689 16-Jul-2024 CET/CEST
Track Record of Creating Value in Asia and Beyond
DKSH Management Ltd. / Key word(s): Half Year Results
DKSH Reports Core EBIT Growth of 8.2% at CER for H1 - Reaffirming
Consistent Track Record of Creating Value in Asia and Beyond
16-Jul-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this
announcement.
____________________________________________________________
Ad hoc announcement pursuant to Art. 53 LR
* Continued value creation in H1 2024
* Core EBIT increased by 8.2% (at CER1) to CHF 163.6 million
* Core EBIT margin expanded by 10 basis points to 3.0%
* Net sales grew by 3.3% (at CER) to CHF 5.4 billion
* Consumer Goods Core EBIT margin reached mid-term target of 2.5%
* Strong Free Cash Flow of CHF 160.8 million (cash conversion 136.0%)
* Confirmed outlook for 2024
* Capital Markets Day on November 18 in London
Key Figures Group (CHF H1 2024 H1 2023 in % in %
million) CHF CER¹
Net sales 5,441.1 5,623.8 (3.2) 3.3
Core operating profit (Core 163.6 162.6 0.6 8.2
EBIT)
Core EBIT margin 3.0% 2.9% - -
Operating profit (EBIT) 160.6 158.5 1.3 9.1
Core profit after tax 118.2 106.4 11.1 16.7
Profit after tax 114.8 107.1 7.2 13.2
Free Cash Flow 160.8 179.0 (10.2) -
Zurich, Switzerland, July 16, 2024 - DKSH's first-half 2024 results reaffirm
our consistent track record of delivering value for our clients, customers,
employees, and shareholders through growth, margin expansion, and effective
cash generation. Net sales reached CHF 5.4 billion (3.3% at CER1) and Core
EBIT was CHF 163.6 million (8.2% at CER) with a 10 basis points higher Core
EBIT margin. Free Cash Flow remained strong at CHF 160.8 million and Core
profit after tax increased by 16.7% (at CER).
DKSH CEO, Stefan P. Butz, said: "I am delighted to report that in a
continuously uncertain environment, DKSH delivered growth and further margin
expansion in the first half of 2024. Capitalizing on diligent strategy
execution and our resilient business model, our valued employees across all
Business Units and enabling Functions contributed to the result. We remained
the trusted partner for our clients and customers and continued to fulfill
our purpose of enriching people's lives. Based on our good first-half
results, we confirm our outlook for 2024. I would also like to welcome
Medipharm and Elite Organic who joined the DKSH family in the first half of
the year."
DKSH Group
DKSH Group net sales increased by 3.3% (at CER) to CHF 5.4 billion in the
first half of 2024. Organic growth contributed the most with 2.3%,
acquisitions added 1.0%, and exchange rates -6.5% as the Swiss franc
remained stronger than most currencies in which we operate compared to the
base period in 2023. The Group Core EBIT reached CHF 163.6 million, 8.2%
higher than in H1 2023 (at CER). Core EBIT margin increased from 2.9% to
3.0%. Core profit after tax was CHF 118.2 million, up 16.7% (at CER) vs.
last year. Free Cash Flow remained strong reaching CHF 160.8 million with a
cash conversion of 136.0%.
Business Unit Healthcare
Backed by attractive market fundamentals, Business Unit Healthcare continued
its path of profitable growth. With an above-GDP net sales growth of 5.8%
(CER) including market share gains in key markets as well as a Core EBIT
growth of over 13% (at CER), the Business Unit improved the Core EBIT margin
to 3.0% (+20 basis points). One major factor for these strong results was
the expansion with new and existing clients in key markets such as Thailand,
Malaysia, and Taiwan. Business Unit Healthcare further focused on its higher
margin businesses, such as Full Agency Services and Own Brands. The Business
Unit will continue expanding its position and driving into higher-value
segments and services.
Healthcare (in CHF million) H1 2024 H1 2023 in % CHF in % CER1
Net sales 2,776.6 2,809.8 (1.2) 5.8
Core EBIT 84.1 78.6 7.0 13.9
EBIT 83.9 78.6 6.7 13.6
Business Unit Consumer Goods
Business Unit Consumer Goods achieved a Core EBIT increase of 17.0% (at CER)
and drove a net sales growth of 2.0% (at CER) to CHF 1.7 billion, aided by a
combination of increased focus on sales effectiveness for outlets and
portfolio prioritization, as well as business development for new client
acquisition. The focus has also been on strengthening KPI-based performance
management, as well as cost efficiencies. DKSH achieved its mid-term Core
EBIT target of 2.5% in H1 2024. The successful transformation of the Unit
positions the business for further profitable growth.
Consumer Goods (in CHF million) H1 2024 H1 2023 in % CHF in % CER1 Net sales 1,703.2 1,788.0 (4.7) 2.0 Core EBIT 42.1 38.8 8.5 17.0 EBIT 40.5 38.8 4.4 12.9
Business Unit Performance Materials
Business Unit Performance Materials' net sales decline of 2.6% (at CER) was
in line with expectations. All regions performed better in the first half of
2024 than in the second half of 2023 with a sequential improvement quarter
over quarter. Core EBIT was CHF 58.6 million, driven by gross margin
expansion, disciplined pricing, and inventory management as well as an
optimized cost structure. DKSH achieved a Core EBIT margin increase of
around 15 basis points to 8.3% (Core EBITA margin increase of around 15
basis points to 8.9%) and remains cautiously optimistic of a gradual rise in
demand.
Performance Materials (in CHF H1 H1 in % in %
million) 2024 2023 CHF CER1
Net sales 708.4 767.0 (7.6) (2.6)
Core EBIT 58.6 62.3 (5.9) (0.2)
EBIT 58.6 62.3 (5.9) (0.2)
Business Unit Technology
Business Unit Technology achieved a net sales growth of 3.3% (at CER),
supported by the recent acquisition of Bio-Strategy. The Core EBIT of CHF
8.6 million compares to an exceptionally strong first half of 2023. With
some project phasing into the second half of 2024, further market
consolidation potential, and a continued focus on scientific solutions,
precision machinery, and equipment for the semiconductor and electronics
industry, Business Unit Technology is expected to achieve a stronger second
half of 2024.
Technology (in CHF million) H1 2024 H1 2023 in % CHF in % CER1
Net sales 252.9 259.0 (2.4) 3.3
Core EBIT 8.6 12.1 (28.9) (27.3)
EBIT 8.6 12.1 (28.9) (27.3)
Outlook Confirmed
DKSH is committed to deliver GDP+2 sales growth (at CER) and expects Core
EBIT (at CER) in 2024 to be higher than in 2023 based on its resilient
business model, successful strategy execution, and strong balance sheet.
This outlook assumes economic growth in Asia Pacific, and barring any
unforeseen events. The Group remains confident about Asia's long-term
potential and is well-positioned to benefit from favorable market, industry,
and M&A consolidation trends.
Capital Markets Day 2024
DKSH is pleased to announce that its Capital Markets Day 2024 will take
place in London on November 18, 2024. The Capital Markets Day is followed by
an analysts' and investors' dinner in the evening. The invitation to the
event including further details will be sent out in the coming weeks.
Further Information
The conference and webcast for media and investors will take place today at
10:00 a.m. CEST. The Half-Year Report 2024 and recording of the webcast will
be available on the DKSH website.
1 Constant exchange rates (CER): 2024 figures converted at 2023 exchange
rates.
* For the definition of Alternative Performance Measures (APM), see
Half-Year Report 2024.
Appendix:
Net Sales Growth Components
(in CHF million) H1 2024 H1 2023 % CHF % Organic % M&A % FX
Healthcare 2,776.6 2,809.8 (1.2) 5.1 0.7 (7.0)
Consumer Goods 1,703.2 1,788.0 (4.7) 1.1 0.9 (6.7)
Performance Materials 708.4 767.0 (7.6) (2.7) 0.1 (5.0)
Technology 252.9 259.0 (2.4) (4.8) 8.1 (5.7)
DKSH Group 5,441.1 5,623.8 (3.2) 2.3 1.0 (6.5)
2 Weighted GDP calculation based on DKSH 2023 Net sales market split.
About DKSH
DKSH's purpose is to enrich people's lives. For almost 160 years, DKSH has
been delivering growth for companies in Asia and beyond across its Business
Units Healthcare, Consumer Goods, Performance Materials, and Technology. As
a leading Market Expansion Services provider, DKSH offers sourcing, market
insights, marketing and sales, eCommerce, distribution and logistics as well
as after-sales services. DKSH is a participant of the United Nations Global
Compact and adheres to its principles-based approach to responsible
business. Listed on the SIX Swiss Exchange, DKSH operates in 36 markets with
29,040 specialists, generating net sales of CHF 11.1 billion in 2023.
www.dksh.com
For further information, please contact:
DKSH Holding Ltd.
Till Leisner
Head, Investor & Media Relations, Sustainability
Phone +41 44 386 7315
till.leisner@dksh.com
Melanie Grüter
Manager, Group Media Relations
Phone +41 44 386 7211
melanie.grueter@dksh.com
____________________________________________________________
End of Inside Information
____________________________________________________________
Language: English
Company: DKSH Management Ltd.
Wiesenstrasse 8
8008 Zurich
Switzerland
Phone: 044 386 72 72
E-mail: media@dksh.com
Internet: www.dksh.com
ISIN: CH0126673539
Valor: 12667353
Listed: SIX Swiss Exchange
EQS News ID: 1946689
End of Announcement EQS News Service
____________________________________________________________
1946689 16-Jul-2024 CET/CEST
