DKSH Group posts excellent first half results

TN News

Email Print

DKSH, a leading Market Expansion Services provider with a focus on Asia, has maintaines its successful growth path with impressive first half results this year.

Compared to the first half of 2011, DKSH, since March 2012 publicly listed on the SIX Swiss Exchange, recorded an impressive increase of 23.0 percent in EBIT to CHF127 million; which lifted its profit after tax by 23.6 percent to CHF 81 million. Net sales increased 16.0 percent, reaching CHF4.2 billion to mark the best half-year in the group's history. Earnings per share amounted to CHF 1.24 and the return on equity (ROE) reached 15.0 percent. All its four business units developed positively in the first six months and contributed to the strong financial performance.

Dr. Joerg Wolle, President & CEO of DKSH Group, said: "This is the first time we are reporting our half-year results as a public company, and the figures of the first six months confirm the very positive track record of DKSH over the past decade. We are proud of the fact that we were able to deliver on our promises. The clear implementation of our strategy for sustainable, profitable growth allowed us once again to outperform the market."

DKSH's strategy is centered on growing organically, through expanding business with existing clients, multiplying success stories from country to country, and new business development. Complementing its organic growth, DKSH has made strategic bolt-on acquisitions that allow the group to expand its position in strategic growth areas. Most recently, DKSH took over the long-established German-Japanese trading firm of Clay and Company Limited to reinforce its technology and lifestyle business in Japan. Before this were more acquisitions such as ElectCables, Desco von Schulthess, Hagemeyer Cosa Liebermann, or East Asiatic Company (Malaysia), confirming DKSH's position as the industry consolidator in the fast growing but very fragmented Market Expansion Services industry.

A major milestone in DKSH's nearly 150 years of history is its Initial Public Offering (IPO) in March 2012. The IPO was the culmination of its transformation process begun following the merger of the long-established Swiss trading houses Diethelm Keller Services Asia and SiberHegner in 2002. Since then, DKSH has successfully transformed from a trading business into a highly specialized service provider with a strong global brand and impressive record growth levels in profits and sales. Today, DKSH is the leader in the newly-defined industry of Market Expansion Services with a focus on Asia.

With total assets of CHF 3.2 billion, total equity of CHF1.1 billion, and low net debt, DKSH's balance sheet remains extremely solid and very conservatively financed. Return on net operating capital (RONOC) is 22.1 percent and is a consequence of the group's efficient net operating capital (NOC) management.

Commenting on the outlook for the remainder of 2012, Joerg Wolle said: "As European and US markets continue facing challenges, western companies are seeking opportunities to expand into new markets and there is growing demand for market entries into Asia, given the sustainably high growth rates in this region. The rapid growth of the Asian economies is driven by their emerging middle classes with increased purchasing power and a healthy and growing appetite for quality consumer, healthcare, as well as luxury and lifestyle products.

Asia is no longer simply the extended "workbench" of the West it is developing into a continent with strong domestic markets. This in turn also creates the need to improve local infrastructure and develop local industries, driving the demand for industrial products such as machinery, semi-finished products, and raw materials. Based on our current market assumptions, we are very confident that we will be able to achieve another record year in 2012 with double-digit profit growth."

Key figures of DKSH (in CHF millions)

   1H 2012
 1H 2011
 Change in percent
 Net sales
 4,172.2
 3,597.9
 16.0
 Operating profit (EBIT)
 126.8
 103.1
 23.0
 Profit after tax
 80.7
 65.3
 23.6
 Specialists
 25,947
 24,342(*)
 6.6

(*) As of year-end 2011

The half-year 2012 report is available for download at http://www.dksh.com/htm/1450/en/Reports-and-presentations.htm

DKSH helps other companies and brands to grow their business in new or existing markets.

Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 650 business locations in   35 countries 630 of them in Asia and around 26,000 specialized staff, DKSH generated net sales of CHF 7.3 billion in 2011.

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. The company has an almost 150-year-long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.

DKSH Vietnam is one of the country's leading business organizations and a key hub for the DKSH Group. Its business activities are organized into four specialized Business Units that mirror fields of expertise: Consumer Goods, Healthcare, Performance Materials, and Technology. DKSH's long tradition in Vietnam and profound knowledge of the local market have enabled the company to anticipate country-specific issues and help business partners to enter and grow their operations in the strategic and rapidly growing market in Southeast Asia.

DKSH Vietnam employs over 2,900 specialists in Vietnam across the country.

* This is an advertorial. 

More Business News