Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on KONINKLIJKE DSM NV. We currently have 7 research reports from 1 professional analysts.
|02Dec16 08:00||PRN||DSM - Repurchase of Shares (25 November 2016 - 1 December 2016)|
|25Nov16 08:00||PRN||DSM - Repurchase of Shares (18 - 24 November 2016)|
|18Nov16 08:00||PRN||DSM - Repurchase of Shares (11 November 2016 - 17 November 2016)|
|04Nov16 07:00||PRN||DSM Announces Repurchase of Shares to Cover Existing Option Plans|
|03Nov16 06:00||PRN||DSM Q3 2016 Results|
|19Sep16 05:00||PRN||DSM Issues Long-term €750 Million Bond|
|08Sep16 07:00||PRN||DSM Named Leader in Dow Jones Sustainability World Index|
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KONINKLIJKE DSM NV
KONINKLIJKE DSM NV
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.
Nutrition’s back for good?
03 Nov 15
Q3 sales of continuing business rose +8% to €1,945m (total: -10% to €2,102m) and EBITDA was slightly up +2% to €287m (total: -21% to €243m). Net profit attributable to shareholders melted from €93m to €36m. 9M operating CF was pretty much unchanged (€382m after €390m), but continuing business generated a higher contribution (€487m after €387m). Overall, the slightly higher operating performance was supported by clearly lower NWC outflows (€-149m after €-366m), which was completely eaten up by higher outflows from others (€-314m after €-67m). Investing CF was primarily driven by higher divestment results and higher inflows from others coming in at €-37m (€-360m). Financing CF swung from €-263m to €296m despite the swing in the change in commercial paper (€-280m after €250m) clearly fuelled from other cash from financing activities (€1,017m after €-31m). Management confirmed FY guidance, still seeing many factors impacting DSM’s performance. Based on them, management expects EBITDA 2015 ahead of 2014's mainly due to positive FX effects.
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.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
30 Nov 16
Results have yet again beaten our forecasts and the management has now delivered the fourth consecutive year of earnings above expectations. The share price is up 41% over the last three months, and Treatt is steadily moving from commoditised sales to more value-added products. Its strategy of deep customer relationships is paying off, giving it a real competitive advantage and improving margins. The year finished strongly and momentum is due to continue in the traditionally seasonally weaker Q117. Our P&L forecasts are broadly maintained, but our fair value moves to 272p (from 240p) as a result of stronger cash flow.
N+1 Singer - Carclo - Trading in line; all divisions performing well
15 Nov 16
Trading remains positive with momentum strong in Plastics and LED. For those willing to look past the pension and dividend issues discussed previously (or for those who think bond yields will now start to help the situation), we feel that there is an attractive investment case at these levels (P/E of c.10x March 17). We remain at Buy.