DKSH HOLDING AG Half-Year Results 2024
Media and Investor Conference
July 16, 2024
Delivering Growth - in Asia and Beyond.
Agenda
- Highlights H1 2024
- Business Units Review
- Financial Update
- Outlook
Page 2
1 | Highlights H1 2024 |
H1 2024 Results Underline Continued Value Creation
DKSH Value Creation
H1 2024 Realization vs. H1 2023
Growth
Achieve above GDP1 net sales growth
Net Sales: +3.3% at CER2
Profitability | Expand margin | |
Core EBIT: +8.2% at CER2 Margin 3.0% (+10 bps)
Cash
Drive cash conversion
Free Cash Flow: CHF 160.8 million
Efficiency
Capital | Increase dividend and targeted M&A | |
Allocation | based on strong balance sheet | |
Cash Conversion: 136.0%
Ordinary Dividend Paid: 11th consecutive
increase to CHF 2.25 per share
DKSH maintains track record of growth, margin expansion, and strong cash conversion
1 | Weighted GDP calculation based on DKSH 2023 Net sales market split. 2 Constant exchange rates (CER): Figures converted at 2023 exchange rates. | Page 4 |
3 | Constant exchange rates (CER): Figures converted at 2019 exchange rates. * For the definition of Alternative Performance Measures (APM), see Half-Year Report 2024 | |
H1 2024 Highlights…
Increased Client | Two Bolt-On | |
Partnerships | Acquisitions | |
• | Medipharm (Healthcare, Brunei) | |
• | Elite Organic (Performance | |
Materials, Malaysia) |
Stronger pipeline | Further M&A potential |
High-Performance
Culture
- Great Place to Work® Certification in nine markets
- Improved employee engagement survey result to 78 (from 77)
- Higher rate of promotions from internal talent pool: 60%, up from 58% in Full Year 2023
- 34% of women in senior leadership
Maximizing talent and engagement
Operational Excellence
incl. Digital & Sustainability
- Increased productivity
-
Continuous digitalization of distribution centers
• 2023: 10, 2024E:12 - Improved agility and efficiency of supply chain; improved Case Fill Rate and Cost per Case
- Electric vehicles and solar project initiated
Sustainable Value
Chain
… confirm DKSH's ambition to be the trusted partner for growth in Asia and beyond
Page 5
More Than 80% of M&A Spend on Higher Profitability Business
Business Unit / Line | H1 2024 Margin2 | M&A Spend3 Since 2019 (in %) | 26 Acquisitions Since 2019 |
Healthcare Own Brands1 | >20% | ~10% | |
Performance Materials | 8.3% | ~60% | |
Technology | 3.4% | ~10% | |
Group margin | |||
Healthcare | 3.0% | ~10% | |
Consumer Goods | 2.5% | ~10% |
Entering H2 2024 with a solid M&A track record and a strong balance sheet
1 Healthcare Own Brands is a part of Business Unit Healthcare; 2 Core EBIT Margin; 3 M&A spend percentage in rounded values | Page 6 |
2 | Business Units Review |
Business Unit Healthcare
Expand strong market position and drive into higher value segments and services
Net Sales (in CHF million) | • Continued strong net sales growth |
+5.8%¹ | o Expansion with existing and new | ||
2'809.8 | 2'776.6 | clients in Thailand, Malaysia and | |
Taiwan | |||
o Above-GDP growth with market | |||
share gains in key markets | |||
H1 2023 | H1 2024 | • | Focus on higher value-added segments |
and services | |||
Core EBIT (in CHF million) | o Full Agency services and Own |
Brands | |
+13.9%1 | o | Successful M&A integration | ||
78.6 | 84.1 | (Partizan Health, Medipharm) | ||
• Core EBIT margin further increased after | ||||
H1 2023 | H1 2024 | strong H1 2023 from 2.8% to 3.0% | ||
Margin | 2.8% | 3.0% |
¹ Constant exchange rates (CER) | Page 8 |
* For the definition of Alternative Performance Measures (APM), see Half-Year Report 2024 | |
Business Unit Consumer Goods
Net Sales (in CHF million)
+2.0%¹ | |
1'788.0 | 1'703.2 |
H1 2023 | H1 2024 |
Core EBIT (in CHF million) | ||
+17.0%1 | ||
38.8 | 42.1 | |
H1 2023 | H1 2024 | |
Capitalizing on our leadership in Asia Pacific | ||
Margin | 2.2% | 2.5% |
- Mid-termCore EBIT margin target of 2.5% achieved (steady improvement vs. 1.6% in H1 2019)
- Net Sales growth of 2.0% in CER
- Positioned the business for further profitable growth:
- Improving salesforce effectiveness
- Business development for client acquisition
- Optimizing outlets and product mix to increase rate of sale
- Increased KPI based performance management
- Core EBIT growth of 17.0% (CER)
¹ Constant exchange rates (CER) | Page 9 |
* For the definition of Alternative Performance Measures (APM), see Half-Year Report 2024 | |
Business Unit Performance Materials
Net Sales (in CHF million) | • Net sales hold up well in a | |
-2.6%¹ | declining H1 market environment | |
767.0 | 708.4 | • H1 2024 sequentially stronger |
than H2 2023; quarter by quarter | ||
improvement | ||
H1 2023 | H1 2024 | • Better momentum across all |
regions | ||
Strengthen leading position in specialty chemicals and ingredients distribution
Core EBIT (in CHF million) | Core EBITA (in CHF million) |
-0.2%¹ | -0.3%¹ | |||
62.3 | 58.6 | 67.2 | 63.3 | |
H1 2023 | H1 2024 | H1 2023 | H1 2024 | |
Margin | 8.1% | 8.3% | 8.8% | 8.9% |
- Improved M&A pipeline
- Optimized cost structure and gross margin increase
- Disciplined pricing and inventory management; inventory reduced by ~7% vs. H1 2023
- Core EBITA margin further increased from 8.8% to 8.9%
¹ Constant exchange rates (CER) | Page 10 |
* For the definition of Alternative Performance Measures (APM), see Half-Year Report 2024 | |
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DKSH Holding AG published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2024 04:51:03 UTC.
