DKSH has delivered strong half-year 2021 results. All key figures increased compared to last year such as net sales growing 5.3%, EBIT 20.7% and free cash flow more than doubled. Against the pre-COVID levels of 2019, DKSH reports higher profitability and cash conversion. Business Unit Performance Materials continued its growth track record and, on the back of its transformation, the Fast Moving Consumer Goods business again posted strong EBIT improvements. DKSH also completed four acquisitions and increased eCommerce sales double digit.

 

DKSH CEO Stefan P. Butz said: “Despite pandemic-related uncertainties and the current restrictions in Asia Pacific, our EBIT and Free Cash Flow exceed 2020 and 2019 levels thanks to our resilient business model and the disciplined execution of our strategy. Visibility on the evolution of the pandemic remains limited, but we will continue to build a better company and expect a solid second half”.

 

In the first half of 2021, Group net sales increased by 2.8% to CHF 5.5 billion. Exchange rates had a negative impact of 2.5% and acquisitions contributed 0.7%, which resulted in an organic growth of 4.6%. DKSH grew EBIT by 20.7% to CHF 131.5 million, which is also an increase of 18.8% against the pre-pandemic levels in the first half of 2019. Profit after tax was CHF 86.7 million and the Free Cash Flow of CHF 107.2 million increased due to focused working capital management. 

 

Despite the ongoing impact of COVID-19 on the healthcare industry and the situation in Myanmar, Business Unit Healthcare delivered solid results on last year's level. DKSH expanded its commercial outsourcing services and business development. The Business Unit also announced the acquisitions of MedWorkz and Hahn Healthcare.

 

The transformation of the Fast Moving Consumer Goods segment is well on track, even amidst COVID restrictions in key markets. Net sales slightly grew due to client wins and expansions despite the ongoing rationalization of client and product portfolios. EBIT increased double-digit benefitting from a leaner structure and from a leadership team that is consistently executing targeted market strategies.

 

Business Unit Performance Materials again posted excellent results with double-digit sales and EBIT growth. The main drivers were strong organic growth across all four Business Lines and most key markets as well as the expansion of the key client portfolio. The experienced DKSH team delivered high-quality services to clients and customers by overcoming challenges in distribution channels and supply shortages. The performance in the first half was supplemented by the Axieo business running ahead of expectations. With the SACOA acquisition, DKSH has taken a further step in consolidating the specialty chemicals distribution industry in Australia and New Zealand. A scalable business model, strong business development, value-added services, digital marketing, and consolidation potential provide future growth opportunities.

 

Business Unit Technology grew sales organically and through the Bosung acquisition in Korea. The service business continued to grow and the Business Unit is well on track with implementing its focus strategy and digitization. The EBIT also increased slightly compared to last year. Based on a solid business pipeline, DKSH is confident that it will deliver a stronger second half of 2021.

 

DKSH expects a solid performance in the second half and EBIT growth in 2021. The outlook assumes a slight GDP growth in Asia Pacific, that exchange rates prevail for the remainder of the year and barring unforeseen events (excludes special items). The company remains confident about Asia's long-term potential and is well positioned to benefit from favorable market, industry and consolidation trends.