¹Constant exchange rates (CER): 2022 figures converted at 2021 exchange rates

Zurich, Switzerland, July 15, 2022 – DKSH reported good half-year 2022 results. EBIT increased by 16.6% to CHF 153.3 million and net sales grew 2.0% reaching CHF 5,596.2 million. All four Business Units recorded higher profits. In addition, DKSH signed six acquisitions, increased its digital business double digits, and made good progress on its Sustainability (ESG) roadmap.

DKSH CEO Stefan P. Butz said: “I am pleased with the results achieved so far in the challenging environment of 2022. After a successful 2021, we continue moving forward with solid growth and profitability improvements. We accelerated M&A, further digitalized our business, and made good progress in our ESG agenda. We will keep working hard to continue delivering value to all our stakeholders and on our purpose.”

DKSH Group
In the first half of 2022, Group net sales grew by 2.0% and reached CHF 5,596.2 million. Organic growth contributed the most at 3.0% while acquisitions added 0.7%, resulting in a growth in constant exchange rates of 3.7%. The strengthening of the Swiss franc had a negative impact of 1.7% in the period.

EBIT reached CHF 153.3 million in the first half of 2022, 16.6% higher than the previous year, while the EBIT margin expanded by more than 30 basis points from 2.4% to 2.7%. Profit after tax was CHF 105.7 million and Free Cash Flow reached CHF 72.1 million. Volatile supply chains and strong growth in Business Unit Performance Materials resulted in temporary higher inventory levels, offset by a reduction in receivables due to faster cash collection.

Business Unit Healthcare
Business Unit Healthcare delivered organic growth and solid EBIT margin improvement, driven by a leaner structure, acquisitions and a higher share of value-added products. The business continued to catch-up from the pandemic and experienced high demand for COVID related products. The Business Unit also announced the acquisition of Acutest Systems in Malaysia.
 
Business Unit Consumer Goods
Business Unit Consumer Goods delivered double-digits EBIT growth as it continues its transformation journey. The business continued benefitting from a leaner and more agile structure, ongoing product portfolio rationalization, and consistent strategy execution. EBIT margin increased 20 basis points from 1.9% to 2.1%. Net sales remained broadly unchanged compared to last year. Reasonable product price increases and lower volumes combined with lockdowns as well as supply chain disruptions in some Asian markets balanced each other out.
 
Business Unit Performance Materials
Business Unit Performance Materials recorded double-digit net sales growth, benefitting from positive industry demand in Europe and Asia Pacific. EBIT increased by 7.5%¹, and excluding Japan, EBIT was up by 16.5% 1 compared to last year. DKSH continued consolidating the global specialty chemicals and ingredients market by signing four acquisitions in the first half of 2022.
 
Business Unit Technology
Business Unit Technology achieved an encouraging performance in the first six months of the year and DKSH is confident that it will continue to rebound from the pandemic and deliver a strong second half of 2022. Following movement restrictions in 2021, the service business started to gradually return to normal, which boosted results. The Business Unit also announced the acquisition of DNIV Group, a major player in the dynamic semiconductor and electronics distribution segment in Asia.
 
Outlook
DKSH expects EBIT growth in 2022. The outlook assumes GDP growth in Asia Pacific, stable exchange rates, and barring unforeseen events (excluding special items). DKSH remains confident about Asia's long-term potential and is well positioned to benefit from favorable market, industry, and consolidation trends.

Further Information
The investor and media conference will take place today at 10:00 a.m. CET. The Half-Year Report 2022 and recording of the investor webcast will be available on the DKSH website.
 
* Organic: Difference 2022 figures to 2021 figures excluding M&A and FX
M&A: Hahn Healthcare and Medworkz (Healthcare), STP (Consumer Goods), Sacoa, HTBA and RBC (Performance Materials) as well as Bosung (Technology)
FX: Impact from currency translation on net sales