23 January 2018Reading time: 2 minutes

Royal DSM is a global chemical company active in the fields of health, nutrition and materials. DSM create sustainable value for shareholder by connecting its skills in life science and material science. DSM is also involved in purely chemical industries such as base chemical and coating resin. Moreover, the company take part in oil exploration in the North Sea and in the licensing of chemical technology all over the world.

On 2 November 2017 DSM released its Q3 result. According to the report performance was strong in this quarter with a up in sales by 9% (8% organic growth) to EUR 6,456 million . Adjusted EBITDA soared by 15% to EUR 1,086 million mostly driven by nutrition and materials branch. The adjusted net profit went up by 29% and reached EUR 504 million.

In the nine months of 2017, Sales volumes developed well allowing an impressing adjusted EBITBA up by 13% compared to the same period in 2016. Animal nutrition branch of the group boosted the overall sales volumes with an extraordinary high volume in Q3 2017. The outlook for 2017 are according to the company maintained, however the future development remains to be seen. The overall result of 2017 will be announced in the first quarter of 2018.

DSM announced on 22 December 2017 the acquisition of BioCare a Danish probiotics manufacturer. This recent acquisition will help DSM to strengthen its position in health solution. DSM has already a leading position on this market with its Culturelle product range the number-one-selling dietary supplement brand globally. BioCare has distribution agreements with leading dietary supplement companies across over 40 countries. Therefore, the acquisition will ensure the distribution of DSM own product range and enhanced its position as a global player in the dietary supplement market.

At the moment DSM shares are traded at EUR 81.80 (10.01.2018). 21 analysts rated DSM on Buy, 7 on Hold and 1 on Sell. The 12-months target price is estimates with EUR 83.42. On top, DSM has a current dividend yield of 2.17 percent. DSM current market capitalization equals EUR 14,891 million.

Vontobel products on DSM are tradable at DEGIRO, Lynx and Interactive Brokers.

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30/05/2020 13:01:57