NETHERLANDS – DSM, the Dutch speciality chemicals company said in a strategy update that it targets value-creating acquisitions predominantly in Nutrition as well as step-up its ambitious goals regarding the reduction of GHG emissions, energy efficiency and use of renewable energy.
The company said given its science-based competencies, it works on delivering on global megatrends and Sustainable Development Goals (SDGs), with a particular focus on Nutrition & Health, Climate & Energy and Resources & Circularity.
DSM’s Nutrition business will focus on human nutrition involving Specialty Nutrition, nutritional ingredients, consumer branded products and Personalized Nutrition in addition to animal nutrition.
DSM also claimed it would better harness digital capabilities to increase customer intimacy, improve productivity and efficiency, and support new business models.
“Our Strategy 2015-18 has been highly successful. After transforming DSM over the period 2010-15, we delivered strong growth with greatly improved operational and financial performance and significant value creation in all our businesses.
In addition, we took important steps to monetize our non-core Pharma and Bulk Chemicals joint ventures.
DSM has become a growth company with ambitious sustainability efforts creating value for all stakeholders across the three dimensions of People, Planet and Profit,” said Feike Sijbesma, CEO/Chairman DSM Managing Board.
Following the announcement of its first-quarter results in May when it achieved US$2.82 billion in group sales, DSM also reaffirmed some of its financial guidance.
The Dutch group looks forward to organic top-line growth above market, high single-digit adjusted EBITDA growth and a step-up in cash generation.
It is aiming for a 25% dividend increase throughout this year, with future dividend growth aligned with long-term earnings growth.
DSM said approximately 20% of sales will come from innovation and 45% of sales from high growth economies as it continues to invest in differentiating science and technology with circa 5% of sales.
“Increased customer centricity and large innovation projects will enable above-market growth, while we will remain focused on cost control and operational excellence, allowing us to accelerate profit and cash generation.
Organic growth will be complemented by acquisitions predominantly in Nutrition.
I am convinced that our strategy will create further significant value for all our stakeholders and the step-up in the dividend demonstrates our confidence in the future,” added Feike.