DKSH Announces 2011 Results -- Another Year of Record Earnings

ZURICH, Feb. 16, 2012 /PRNewswire-Asia/ -- DKSH, the leading Market Expansion Services provider with a focus on Asia, has achieved another record year, with 2011 financial performance exceeding its record results of 2010. Net Sales reached CHF 7.3 billion, while operating profit (EBIT) grew impressively by 21.7% to CHF 238 million. Profit After Tax (PAT) rose by 25.7% to CHF 152 million.

According to Dr. Joerg Wolle, President & CEO of DKSH: "The 2011 record performance is a seamless continuation of the successful development of previous years. It speaks for the resilience of our business model, as well as for our strategy that is focused on sustainable profitable growth in promising future markets."

Strong growth in turbulent markets

In its 2011 business year, DKSH continued its steady growth trend of recent years. Net Sales rose to CHF 7.3 billion. EBIT increased notably by 21.7% to reach CHF 238 million, while Profit After Tax grew by 25.7% to CHF 152 million.

These record figures were achieved despite a year in which some of DKSH's core markets (in particular Thailand and Japan) were struck by natural catastrophes that had very severe consequences for those nations' peoples and economies. The fact that the resultant economic setbacks did not have a lasting negative impact on DKSH financial results can be attributed to the strength and resilience of its business model as well as to the broad diversity of its portfolio and activities, both in terms of industries and geographic spread throughout the Asia region. Another challenge the company faced in 2011 was the strong Swiss Franc, but only in terms of local currency conversions into Swiss Franc, the Group's reporting currency. At constant exchange rates, Net Sales and EBIT results were even more remarkable.

Middle class driving the dynamics of emerging economies

In 2011, DKSH's very good financial performance resulted mainly from organic growth -- actively growing existing business and acquiring new clients and customers. This accomplishment was favored by a number of factors. The rapidly rising middle class of Asia's emerging economies is driving demand for high-quality consumer goods and healthcare products which, in turn, is having a direct and positive impact on consumer markets. In DKSH's assessment, this demand is also boosting overall consumption in Asia's markets and consequently leading to a rise in the need for Western materials and technologies in order to build local infrastructures and production capacities to manufacture products locally. The resultant market dynamics are not only promoting trade with the West; inner-Asia business is also benefiting from the sustainable impetus generated by the growing affluence of the middle class. At the same time, increasing numbers of companies are faced with the need to focus on core competencies. Those intending to expand in Asia are therefore relying increasingly on specialized service providers dedicated to market entry and expansion. Thanks to its traditionally strong presence and capillary market coverage across Asia, combined with the rising demand for outsourced Market Expansion Services, DKSH was able to benefit from these economic megatrends and registered impressive 2011 financial results. 

Selective acquisitions

To complement its organic growth, DKSH exploited suitable opportunities and closed five strategic "bolt-on" acquisitions in 2011. In Taiwan, the field marketing specialist 3D Asia was acquired, allowing DKSH to further enhance its leadership position in the consumer goods market within the geographic triangle of South mainland China, Hong Kong, and Taiwan. In New Zealand, DKSH acquired Brandlines and FNZ Brands -- two leading full-service companies in the consumer goods sector. In Australia, DKSH succeeded in making an important acquisition in the specialty chemicals industry by taking over Tiger Chemicals Company. Moreover, in the middle of the year, DKSH acquired a majority shareholding in the Swiss watchmaker Maurice Lacroix.

Broadly diversified growth

All four Business Units performed well and contributed to DKSH's growth in profits in 2011. Consumer Goods, the largest business unit of DKSH, grew its EBIT by 22.2%. The second largest, Business Unit Healthcare, increased its EBIT by 10.3%. Business Unit Performance Materials reported a rise in EBIT of 7.7%, while Business Unit Technology realized an EBIT growth of 8.0% for 2011. These gratifying results can be attributed to the rigorous implementation of DKSH's strategy for growth, which is based on the successful expansion of existing business partnerships, winning new clients and customers, plus the ongoing improvement in operational efficiency. 

Key financial figures of DKSH (in CHF million)

About DKSH Group

DKSH is the leading Market Expansion Services Group with a focus on Asia (Note 1). As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets.

With 650 business locations in 35 countries -- 630 of them in Asia -- and over 24,000 specialized staff, it is one of the top 20 Swiss companies ranked by sales and employees. In 2011, DKSH generated Net Sales of CHF 7.3 billion.

The company offers any combination of sourcing, marketing, sales, distribution, and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials, and Technology.

Although DKSH is a Swiss company headquartered in Zurich, it is deeply rooted in communities all across Asia Pacific. This is because the company looks back on a nearly 150-year-long tradition of doing business in and with the region.