DKSH (DKSH) H2 2024 earnings summary

Executive summary

• Achieved 4% net sales growth at constant exchange rates (CER) to CHF 11.1 billion in 2024, outpacing market GDP growth of 3.4%.

• Core EBIT rose 8.4% at CER to CHF 343.1 million, with margin expansion to 3.1% (+10 bps).

• Free cash flow reached CHF 256.5 million, with cash conversion at 113.6%, and a proposed 12th consecutive dividend increase to CHF 2.35 per share.

• Four bolt-on acquisitions completed in 2024, supporting growth and margin expansion across business units, with M&A investment exceeding CHF 900 million.

• Sustainability initiatives advanced, including a 55% reduction in Scope 1 and 2 CO2 emissions since 2020.

Financial highlights

• Net sales: CHF 11,093.6 million (+4.0% CER year-over-year); Core EBIT: CHF 343.1 million (+8.4% CER year-over-year); Core EBIT margin: 3.1% (+10 bps year-over-year).

• Core profit after tax increased 13.9% to CHF 256.5 million.

• Core RONOC reached 19.7% (+100 bps YoY), and core ROE improved to 12.1%.

• Working capital maintained at 8.6%-8.8% of sales, at the low end of the five-year range.

• Improved net cash position to CHF 48.1 million and equity ratio to 32.1%.

Outlook and guidance

• Expect core EBIT to be higher in 2025, assuming stable economic and FX conditions, aligned with mid-term roadmap.

• M&A pipeline remains strong, with further deals anticipated in 2025.

• Recent acquisitions expected to contribute around 0.3% to net sales in 2025.

• Effective tax rate guided at the upper end of 27%-29% for 2025.

• Capital expenditure expected to remain between 0.3%-0.5% of net sales.