DKSH Increases Net Sales and Profit Despite Difficult Conditions

ZURICH, Feb. 15, 2016 /PRNewswire/ --

• Net sales increase by 2.4% to CHF 10.1 billion
• Profit after tax grows by 2.1% to CHF 199.6 million in a challenging market environment
• Earnings per share increase by 5.4%
• Proposal to increase ordinary dividend by 13.0% to CHF 1.30 per share
• Resilience of business model reconfirmed in spite of difficult conditions -- restructuring of luxury goods business in H2 2015 initiated
• DKSH sees further potential for market share gains and growth

DKSH (SIX: DKSH), the leading Market Expansion Services provider with a focus on Asia, succeeded in mitigating the negative developments in its relevant markets. The company recorded increases in key figures. This performance was achieved despite substantial political and economic challenges in Asia. Net sales increased by 2.4% to CHF 10.1 billion and profit after tax by 2.1%. The number of specialists grew beyond 28.000. Thereby, DKSH once again demonstrated the robustness, balance and resilience of its business model in a temporary difficult market environment.

Dr. Joerg Wolle, President & CEO of DKSH, said: "DKSH operates on a stable and sustainable basis. Despite substantial distortions in several Asian economies, we continued to grow and expand our business. This is evidence of the unique position and particular strength that DKSH has developed over time. The company will benefit from these once market conditions improve. We have proven again, that we are also able to operate in a very difficult environment."

Net sales grew by 2.4% to CHF 10.1 billion. Organic growth was 4.0% and 0.4 percentage points resulted from M&A activities. Exchange rate fluctuations reduced net sales by 2.0%. At constant exchange rates, net sales increased by 4.4% to CHF 10.2 billion.

DKSH generated an operating profit (EBIT) at approximately last year's level of CHF 270.2 million. At constant exchange rates, EBIT of CHF 275.3 million was even slightly above the previous year's figure (CHF 272.7 million).

Profit after tax of CHF 199.6 million was 2.1% higher than the year before and at constant exchange rates up 3.7%. Free Cash Flow added up to CHF 190.8 million.

Business Units Healthcare, Technology and Performance Materials achieved excellent results in 2015. Political uncertainty, the resulting subdued consumer sentiment and overall deteriorating economic conditions led profit of Business Unit Consumer Goods to decline compared to last year. In Thailand, a tense political situation as well as terror attacks during summer impacted market conditions. While in Malaysia, in addition to the political disturbances, low commodity prices and the devaluation of the local currency impacted business.

Within Business Unit Consumer Goods, the luxury goods business was substantially affected by the weak demand in Asia, the ongoing industry consolidation and the strong Swiss franc. The restructuring measures in this area will be continued.

In line with the progressive dividend policy practiced since many years, the Board of Directors will propose to the Ordinary Annual General Meeting (AGM) in March 2016 an ordinary dividend of CHF 1.30 per share for the financial year 2015. The ordinary dividend thereby would be CHF 0.15 or 13.0% higher than last year.

Payment date for this dividend, if approved by the AGM, is set starting April 5, 2016 (record date: April 4, 2016; ex-dividend date: April 1, 2016).

Due to the robust business model and intact long-term growth drivers in Asia, DKSH is confident to gain further market share also in periods of high volatility. When in addition an upswing in the core markets occurs, net sales and profit growth should continue in 2016 and the following years.

Further information

A recording of the webcast will be available on the DKSH website. There, the download for the Annual Report 2015 is available as well.

About DKSH Group

DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets. Publicly listed on the SIX Swiss Exchange since 2012, DKSH is a global company headquartered in Zurich. With 770 business locations in 36 countries -- 740 of them in Asia -- and 28,300 specialized staff, DKSH generated net sales of CHF 10.1 billion in 2015.

The company offers a tailor-made, integrated portfolio 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.

DKSH was founded in 1865. With strong Swiss heritage, the company has a long tradition of doing business in and with Asia and is deeply rooted in communities and businesses across Asia Pacific.