Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on KONINKLIJKE DSM NV. We currently have 8 research reports from 1 professional analysts.
|27Jul16 07:00||GNW||DSM successfully completes secondary offering of shares in Patheon N.V.|
|22Jul16 08:00||GNW||DSM finalizes repurchase of shares to cover existing option plans and stock dividend|
|21Jul16 07:03||GNW||DSM informs market of final pricing of Patheon N.V. IPO|
|15Jul16 08:00||GNW||DSM - repurchase of shares (8 July 2016 - 14 July 2016)|
|11Jul16 12:15||GNW||DSM informs market of amended S-1 filing by Patheon N.V.|
|08Jul16 08:00||GNW||DSM - repurchase of shares (1 July 2016 - 7 July 2016)|
|01Jul16 08:00||GNW||DSM - repurchase of shares (24 June 2016 - 30 June 2016)|
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KONINKLIJKE DSM NV
KONINKLIJKE DSM NV
Preparing the balance sheet by burdening FCF
17 Feb 17
DSM saw +3% (v: +4%; FX: -1%) higher sales, moving up to €7,920m, and EBITDA improved +10% to €1,146m in 2016. Net profit attributable to shareholders moved from €78m to €617m. Operating CF strongly increased by +46% to €1,018m pushed by a swing in the other (€38m after €-263m). Investing CF swung from €421m, helped by divestment gains, to €-1,194m as the outflow for fixed-term deposits jumped to €-936m (€-2m). Management decided to take the proceeds from the €750m bond and add them to the cash sitting on the balance sheet (IPO proceeds from Pantheon shares). FCF swing from €421m to €-176m. Financing CF swung from €-440m to €113m primarily fuelled by higher net gross debt proceeds (€597m after €244m). Cash, including current investments, sitting on the balance sheet rose from €674m to €1,548m. Management will propose a higher dividend of €1.75 (€1.65) per share at the AGM on 3 May 2017, of which €0.55 per share has been already paid out in August 2016. For 2017, management guides for a high single-digit percentage adjusted EBITDA growth and a high double-digit basis point ROCE growth in line with the targets set out in Strategy 2018.
IPO gain pushes earnings
03 Nov 16
DSM reported higher volumes (+3%), which were the main sales driver (+3% to €1,945m) for continuing operations in Q3. EBITDA rose +22% to €246m and net profit attributable to shareholders skyrocketed from €33m to €318m fuelled by the €232m inflow from the gain on the IPO of Patheon. 9M operating CF jumped +69% to €644m due to lower other (€-78m after €-314m). By contrast, investing CF jumped to €-880m (€-37m) suffering from higher investments in fixed-term deposits (€-766m after €-2m). Capex declined from €-392m to €-306m. Financing CF came in fairly unchanged at €291m (€296m) despite by lower net cross debt proceeds (€597m after €714m) as interest paid dropped from €-184m to €-77m due to the lack of payments for the settlement of interest rate pre-hedging of bonds in 2015. Management confirmed FY guidance, expecting to deliver EBITDA growth of low to mid teens and to increase ROCE by over 200bp.
Nice volume growth is not enough
02 Aug 16
Q2 sales were up +1% to €1,994m despite higher volumes (+6%), when compared to the previous year’s continued operations. By contrast, the group’s EBITDA strongly rose by +31% to €332m and net profit attributable to shareholders came in at €134m after €99m. H1 operating CF rose from €101m (continued operations: €187m) to €319m less burdened by other items (€-38m after €-253m). Despite lower capex (€-177m after €-275m) and lower net acquisition costs (€-16m after €-40m), investing CF moved from €-161m to €-200m, lacking some help from the other line (€-8m after €127m). Financing CF (€-308m after €-105m) was hit by the net repurchase of own shares (€-105m after €-36m), higher dividends and lower other cash from financing activities. Management lifted FY guidance, now expecting to deliver EBITDA growth of low to mid teens (high single-digit) and to increase ROCE by over 200bp (high double-digit).
On the mend?
26 Apr 16
DSM‘s continuing business’ sales were slightly higher (+1% to €1,913m) as a +5% volume increase was absorbed by a weaker price/mix (-3%) and adverse FX developments (-2%). EBITDA improved +20% to €271m, driven by all divisions. Net profit attributable to shareholders swung from €-70m to €84m. Despite slightly higher NWC outflow, operating CF ramped up from €22m to €137 helped by other items. Stripping out discontinued operations, operating CF was €84m in Q1 15. With lower capex and the lack of acquisition costs, investing CF moved from €-210m to €-81m. Due to a swing in the change in commercial paper (€-125m after €220m) and the ongoing share buy-back program (€-52m), financing CF swung from €227m to €176m. Management confirmed the outlook. DSM expects to deliver EBITDA and ROCE in line with the Strategy 2018 targets in FY 2016.
Just higher volumes make fun of the organic business
17 Feb 16
DSM reported +10% higher sales of continued operations to €7,722m driven by some higher volumes (+3%; mainly Nutrition) and favourable FX developments (+8%). EBITDA slightly weakened by 3% to €956m, suffering from Nutrition’s lower contribution and some higher one-offs (e.g. the efficiency improvement programmes). Net profit attributable to shareholders came in at €88m after €145m. Operating CF suffered from higher outflows for Other (€-387m after €-202m) declining by 14% to €696m. Investing CF nearly halved from €-515m to €-275m, clearly helped by the higher divestment gains (€297m after €78m). Financing CF was fairly unchanged (€440m after €419m) as lower expenditures for the share buy-back programme and higher other cash from financing activities could buffer the swing (€-250m after €250m) in commercial paper. Management proposes a stable dividend (€1.65 per share) at the AGM on 29 April 2016. DSM expects to deliver EBITDA and ROCE in line with the targets of Strategy 2018 in FY 2016. We assume the publication of the annual report within the next few weeks.
Switching from compulsory to free programme: Strategy 2018
06 Nov 15
DSM held an investors day to give more insights about the company’s future strategy and how it will deal with its challenges. Management sees 2010-15 as the period of transformation and the upcoming years until 2018 for a stronger focus on financial results.
What a Treatt
18 Jan 17
Treatt is steadily transforming itself from a seller of flavour and fragrance-based commodities to a value-added ingredients supplier. The strategy of deep customer knowledge is paying off, leading to stronger relationships, a real competitive advantage and greater profitability, with EBIT margins increasing from 9.6% in 2014 to 10.8% in 2016. Management has delivered four consecutive years of earnings above expectations and the momentum remains strong. Our DCF analysis calculates a fair value of 293p, supported by benchmark analysis that places the stock at a c 30% discount to its peer group.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Suffering CropScience, operating CF’s tide is high
22 Feb 17
Bayer reported +2% (organic: +4%) higher sales at €46,769m and the gross profit margin improved from 54.4% to 56.6% in 2016. EBITDA rose +13% to €10,785m and net profit attributable to shareholders came in at €4,531m, up by +10%. Operating CF (+32% to €9,089m) benefited from the good operating basis and higher D/A (+12%), but the significantly lower NWC outflow (€-149m after €-817m) and the contribution from discontinued operations (Diabetes Care and CS Consumer) were the afterburner. Investing CF reflects the company’s willingness to hoard cash for the Monsanto takeover as it moved from €-2,762m to €-8,729m, primarily due to the outflows for current financial assets (€-5,645m after €-344m). Financing CF (€-350m after €-3,974m) saw a strong inflow from capital contributions and lower net gross debt repayments (€-730m after €-2,929m). Management will propose a +8% higher dividend of €2.70 (€2.50) per share at the AGM on 28 April 2017. Management gave a detailed 2017 guidance and expects sales to increase to over €49bn. EBITDA before one-offs is seen to increase by a mid single-digit percentage and core earnings per share from continuing operations by a mid single-digit percentage as well.
Continued progress since interims
01 Feb 17
Carclo has announced that H217 trading remains strong and the outlook for the full year is in line with its expectations. Growth is being driven by the two larger divisions, Technical Plastics (TP) and LED Technologies, while the Aerospace division is experiencing stable trading conditions. We leave our estimates unchanged, but note potential currency upside should foreign exchange rates remain at current levels for the remainder of FY17.
29 Nov 16
The prospect of Hilary Clinton creating an oversight panel with the power to impose a set of harsh enforcement rules to control aggressive pricing of pharmaceuticals in the US fell away with the election of Trump, leading to a 16% bounce in the NASDAQ Biotech index and an 8% increase in the US Pharma & Biotech index, some of which has already been given back.
Still solid, but not perfect in an unadjusted, real world
23 Feb 17
Henkel increased sales by +4% (organic: +3%) to €18,714m, the gross profit margin weakened 30bp to 47.9% in 2016. EBITDA moved up +8% to €3,345m and net profit attributable to shareholders came in at €2,053m, +7% higher. Operating CF strongly increased +20% to €2,850m seeing a higher operating basis and a stronger NWC inflow (€281m after €20) due to higher payables as well as other liabilities and provisions. Investing CF (€-4,250m after €-893m) was clearly impacted by acquisition-related costs (€-3,727m after €-322m) for e.g. Sun Products. Financing CF swung from €-1,555m to €1,678m primarily due to the financing measures in the context of the large acquisition, which had been fully debt and cash financed as net gross debt repayment of €-1,025m swung to net gross debt issuance of €2,740m. Management proposes a +10% higher dividend of €1.60 (€1.45) per share at the AGM on 6 April 2017. For 2017, management expects organic sales growth of 2-4% with all divisions in this range, an adjusted EBIT of >17.0% and an adjusted EPS growth of 7-9%.