DKSH Continues its Sustainable Profitable Growth in First Half 2013
13 Aug 2013 --- DKSH, the leading Market Expansion Services provider with a focus on Asia, reported today another successful half-year 2013. Publicly listed on the SIX Swiss Exchange since March 20, 2012, DKSH achieved net sales and profit after tax growth of 14.3% and 30.8%, respectively, compared to the first half 2012.
Again, DKSH exceeded the projected long-term growth rate of 8.3% of its addressable Market Expansion Services industry, confirming further market share gains.
95% of net sales growth were achieved organically, i.e. excluding M&A activity.
Earnings before interest and taxes (EBIT) increased by 13.4% (+CHF 16.9 million) to CHF 142.8 million, despite the strong depreciation of the Japanese Yen.
Free cash flow increased by 236.2% to CHF 170.8 million, which is extraordinary in light of the strong sales growth of CHF 594.5 million in the first half of 2013.
Dr. Joerg Wolle, President & CEO of DKSH, commented: “Thanks to the consistent implementation of our strategy for sustainable profitable growth we have been able to achieve very positive results also in the first half of 2013. With an organic growth significantly above the market we have once again increased our market share and continued our course of success in the first six months of the year.”
DKSH’s strategy for sustainable profitable growth is centered on growing organically, through expanding business with existing clients, multiplying success stories from country to country, and new business development, complemented by strategic bolt-on acquisitions. At the same time, DKSH is continuously strengthening the service offering and increasing the efficiency and performance of its business processes.
Strategic acquisition in Indonesia
This week, DKSH signed an agreement to acquire PT Primatek Technologies, a well-established Indonesian distributor of capital investment goods, with Swiss origin. This acquisition will provide DKSH with a solid basis for the market entry in Indonesia with its Business Unit Technology. DKSH thereby expands its existing presence with Business Unit Performance Materials in one of the fastest-growing markets in ASEAN.
With this move, DKSH is driving forward the ongoing consolidation of the rapidly growing, yet highly fragmented Market Expansion Services industry.
More than 26,000 employees
People are DKSH’s most important asset and the company continues to invest in the skills and training of its employees. By June 30, 2013, DKSH employed 26,263 specialists worldwide, representing an increase of 381 people or 1.5% vs. year-end 2012.
Somboon Prasitjutrakul, Head of Business Unit Consumer Goods and one of DKSH’s longest-serving Members of Group Management will go into retirement at the end of 2013. Dr. Joerg Wolle, President & CEO of DKSH, comments: “The Board of Directors and the Group Management would like to sincerely thank Somboon Prasitjutrakul for his valuable contribution over two decades and wish him all the best for the future.” The succession plan will be communicated in detail at a later stage.
Outlook for 2013 remains positive
In spite of more and more negative comments and the proliferation of economic news about a less positive development with slower growth in emerging markets, DKSH expects its main markets to perform favorably. This growth is driven by the rising middle class in Asia, increasing trade flows to and within Asia and the trend for companies to outsource non-core activities. From today’s perspective the company is optimistic that 2013 will be another record year with double-digit profitable growth, whereby sales are expected to grow at least in line with the addressable market.
