DSM reports 2020 results
HEERLEN, Netherlands, Feb. 16, 2021 /PRNewswire/ --
Full year highlights1
We continued to make good progress on the execution of our long-term strategic plan, including three specialty nutrition acquisitions that enhance our offering to customers, the divestment of Resins & Functional Materials, and delivering against our purpose-led sustainability ambitions in people and planet. With our innovation-focused growth platforms, we are firmly on track to deliver strong sales and earnings growth in coming years.
Whilst global uncertainty remains, looking ahead, we have a positive outlook for DSM in 2021."
In Nutrition, DSM sees significant headroom for business growth and innovation. The success of Nutrition's unique business model combining 'global products' and 'local solutions' is evident in its track record of 6% organic sales growth and a 10% Adjusted EBITDA growth CAGR 2015-2020. Recent acquisitions such as CSK, Glycom and the Erber Group further strengthened DSM's value proposition to customers. Going forwards, Nutrition will maintain strong growth by building on its 'global products' and 'local solutions' model. In addition DSM will add a third leg through driving precision and personalization, by building on big data, digital and bioscience capabilities.
In Materials, DSM has strong growth and earnings potential, and is well positioned in the strategic area of Sustainable Living. Following the announcement of the sale of the Resins & Functional Materials businesses to Covestro AG, Materials' activities now consist of DSM Engineering Materials and DSM Protective Materials. The company will continue to develop these into a more resilient, higher-growth, and high-margin specialty business. Its offering addresses the increasing demand for materials that protect the health of both people and planet by adding further bio-based and circular solutions.
Overall, DSM aims to deliver mid-single digit % organic sales growth, an above 20% Adjusted EBITDA margin, and high-single digit % Adjusted EBITDA growth on a mid-term basis in both Nutrition and Materials, supported by its strong innovation pipeline.
Q1 & Q3 reporting change
Nutrition delivered a strong sales performance in Q4, despite a significant negative foreign exchange effect of -7% which almost entirely offset the contribution of recent acquisitions. Business conditions overall were good, in line with expectations as communicated with the Q3 results.
Materials saw a strong sales recovery in Q4 driven by strong demand for Engineering Materials in the automotive markets. Protective Materials saw a partial recovery in its personal protection activities.
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Forward Looking Statements