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.
N+1 Singer - Uncovered Gems - Speed Dating Lunch - A Famous Five for the future?
12 Apr 17
On Friday we hosted our third “speed dating” lunch with the management of five very interesting and contrasting companies not under our formal coverage: Be Heard, Byotrol, Gfinity, Oxehealth and Plant Impact. Each company gave a concise and punchy overview of its business and investment case to a group of fund managers, before rapid fire Q&A. Below we summarise our thoughts on each company with more details inside the note, plus some relevant slides. We believe that all five companies are well-managed and well worth a closer look - we intend to repeat this efficient and popular format for engaging with management teams.
Innovate, specialise, integrate, globalise
01 Dec 16
Carclo has refocused investment in its established businesses (Technical Plastics and LED Technologies), where a differentiated offer and long-term relationships with customers provide good earnings visibility and more certainty of a return. This strategy delivered strong revenue and profits growth during H117. This growth appears set to continue, underpinned by long-term relationships with blue-chip customers. We leave our estimates and indicative valuation broadly unchanged and introduce our estimates for FY19.
N+1 Singer - Scapa Group - Ahead of expectations
13 Apr 17
Following a positive H1, the second half has continued in the same vein, meaning that trading is ahead of expectations. We upgraded in October and November 2016 and now expect the results in May to show a further improvement on our forecasts shown below. We would also expect to increase our FY18 forecasts in May with more detail on the outlook for both divisions. The efficiency driven margin improvement in Industrials continues as Rorschach closes, whilst the Healthcare pipeline is also strong and Euromed is integrating well. With ongoing strong momentum, debt low (therefore M&A a likelihood) and increased confidence in FY18 forecasts, we increase our target price to 405p and remain at Buy.
N+1 Singer - Morning Song 12-04-2017
12 Apr 17
Futura Medical (FUM LN) Multiple licensing discussions underway | Low & Bonar (LWB LN) Solid Q1, trading in line | Nuclear options Significant long-term opportunities for UK companies | RhythmOne (RTHM LN) Trading update – profit and cash ahead | Uncovered Gems - Speed Dating Lunch A Famous Five for the future?