DKSH (DKSH) H2 2025 earnings summary

Executive summary

• Net sales grew 2.9% at constant exchange rates to CHF 11.1 billion, with accelerated growth in the second half of 2025 and strong execution of strategy in a muted market environment.

• Core EBIT increased 6.7% at CER to CHF 349 million, with margin expanding to 3.2% for the fifth consecutive year, driven by Healthcare and Consumer Goods.

• Free cash flow reached CHF 215.5 million, with a 95.2% cash conversion rate, supporting nine M&A transactions and a proposed 6.4% dividend increase to CHF 2.50 per share.

• Nine M&A transactions were announced in 2025, with over 80% of spend focused on higher-margin businesses and expansion beyond APAC.

• Ordinary dividend proposed to increase for the 13th consecutive year, now CHF 2.50 per share, up 6.4%.

Financial highlights

• Net sales up 2.9% year-over-year at constant FX to CHF 11.1 billion; organic growth 2.5%, M&A contributed 0.4%.

• Core EBIT margin increased by 0.1 percentage points to 3.2%, fifth consecutive year of expansion.

• Core profit after tax reached CHF 226.4 million, up 3.3% at CER.

• Free cash flow of CHF 215.5 million, cash conversion at 95.2% for the sixth year.

• Negative FX impact on net sales was 3.1%.

Outlook and guidance

• Confident in delivering sustainable Core EBIT growth in 2026, expecting higher Core EBIT than 2025, with ongoing accelerated M&A activity.

• Recent acquisitions expected to contribute 0.8% to net sales in 2026, with more deals anticipated.

• Tax rate guidance for 2026 remains at 27%-29%; capital expenditure expected at 0.3%-0.4% of net sales.

• Asia Pacific expected to remain a key growth driver, with strong GDP forecasts and favorable industry trends.

• Mid-term roadmap reaffirmed, with focus on margin expansion, cash efficiency, and above-GDP sales growth.