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DKSH Management Ltd. / Key word(s): Annual Results/Conference Ad hoc announcement pursuant to Art. 53 LR
1 Constant exchange rates (CER): 2022 figures converted at 2021 exchange rates 2 For the definition of Alternative Performance Measures (APM), see Annual Report 2022 (pages 49-52) 3 Proposal of the Board of Directors
Zurich, Switzerland, February 9, 2023 – DKSH reported strong full-year 2022 results. EBIT increased by 12.2% (16.6% at constant exchange rates) to CHF 319.2 million, and net sales grew 1.9% (4.5% at constant exchange rates), reaching CHF 11.3 billion. The EBIT margin expanded by more than 25 basis points in an inflationary market environment. All Business Units recorded improved performance. In addition, DKSH closed ten acquisitions, grew eCommerce sales double digit, and progressed well in its Sustainability agenda. DKSH Group net sales increased by 1.9% to CHF 11.3 billion in 2022. Organic growth contributed the most with 3.0%, while acquisitions added 1.5% and exchange rates -2.6%. Business Unit Healthcare emerged stronger from the pandemic and recorded organic growth and a double-digit EBIT increase. The EBIT margin improved from 2.3% to 2.6% with higher profitability across key segments. In addition, the Business Unit acquired businesses/trademarks in growth areas, such as Medical Devices and Own Brands. Backed by its resilient business model, the Unit will continue expanding its market position and driving into higher value segments and services.
The successful transformation of the Business Unit resulted in another year of EBIT growth. The Unit continued benefitting from a more agile structure, product portfolio rationalization, and value-added services. The EBIT margin increased from 2.2% to 2.3%. Net sales remained around last year’s level, as price increases to reflect inflation and lower market volumes balanced each other out. The Business Unit will continue capitalizing on its position in Asia Pacific to drive growth and profitability.
Business Unit Performance Materials delivered strong net sales growth of 20.2% at constant exchange rates in 2022, supported by business development and industry demand in Europe and Asia Pacific. EBIT reached CHF 112.2 million. Considering M&A-related costs (CHF 3.6 million), translational currency effects (CHF 6.5 million), as well as realized FX and hedging gains (CHF 7.8 million), the underlying result was CHF 130.1 million. DKSH added four acquisitions in Europe, one in Asia, and a distribution platform in North America to build global reach. A scalable business model, business development pipeline, and industry consolidation potential provide future growth opportunities.
Business Unit Technology achieved excellent results in 2022, exceeding pre-pandemic levels. Both net sales and EBIT increased double digit. The business benefitted from investments into Southeast Asia, its focus on key Business Lines, and from the expansion of its consumables and service portfolio. In addition, DKSH acquired DNIV Group, a distributor for the semiconductor and electronics segment in Asia. The Business Unit is determined to solidify its position in key industries in Asia Pacific, to build further resilience, and to focus on higher margin segments and services.
⁴ For 2021: Expenses for the Long-Term Incentive Plan (LTIP) are partly reclassified from Other to the four Business Units. Share of profit and loss of associates are reclassified from Business Unit Consumer Goods to Other. Outlook Looking ahead, DKSH expects EBIT in 2023 to be higher than in 2022 based on its resilient business model, successful strategy execution, and strong balance sheet. The acquired businesses will contribute to growth in 2023. This outlook assumes economic growth in Asia Pacific, exchange rates at current levels, and barring any unforeseen events. The Group remains confident about Asia's long-term potential and is well-positioned to benefit from favorable market, industry, and consolidation trends. On March 16, 2023, DKSH will host its 90th Ordinary General Meeting in Zurich. In addition to the separate re-election of each of the current members, Gabriel Baertschi (Swiss, 1974), will be proposed as a new member of DKSH’s Board of Directors. Gabriel Baertschi is currently Chairman of the Corporate Executive Board and CEO of Grünenthal GmbH, Germany, a science-based pharmaceutical company. He has more than 20 years of international experience in the pharmaceutical industry across Asia and Europe, having held various leading regional positions within the AstraZeneca Group. The conference and webcast for media and investors will take place today at 11:00 a.m. CET.
1 Constant exchange rates (CER): 2022 figures converted at 2021 exchange rates 2 For the definition of Alternative Performance Measures (APM), see Annual Report 2022 (pages 49-52) 3 Proposal of the Board of Directors ⁴ For 2021: Expenses for the Long-Term Incentive Plan (LTIP) are partly reclassified from Other to the four Business Units. Share of profit and loss of associates are reclassified from Business Unit Consumer Goods to Other. About DKSH For further information, please contact: End of Inside Information |
| Language: | English |
| Company: | DKSH Management Ltd. |
| Wiesenstrasse 8 | |
| 8008 Zurich | |
| Switzerland | |
| Phone: | 044 386 72 72 |
| E-mail: | media@dksh.com |
| Internet: | www.dksh.com |
| ISIN: | CH0126673539 |
| Valor: | 12667353 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1555521 |
| End of Announcement | EQS News Service |
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1555521 09-Feb-2023 CET/CEST
