I would like to take this opportunity to share with you the results of our half-year performance. We achieved growth in the first half-year 2016 despite a continued challenging business environment. Compared to half-year 2015, net sales increased by 2.3% to CHF 5.1 billion. DKSH generated an EBIT of CHF 136 million and profit after tax of CHF 92 million. While these figures were lower than in the first-half of 2015, due to the one-time contract adjustments in Business Unit Healthcare EBIT was significantly higher compared to last year.
For the first time, we increased net sales above the CHF five billion mark in a first half-year period, continuing the net sales growth achieved in recent years. We managed to generate further strong growth, particularly in the frontier markets of Vietnam, Myanmar, Laos and Cambodia. At the same time, we succeeded in stemming the decline caused by political changes in Thailand, and notwithstanding continuing difficult market conditions in Hong Kong, DKSH recorded first signs of an improvement.
With regards to Business Unit performance:
In Business Unit Consumer Goods, margins recovered. As part of our portfolio optimization, DKSH terminated contracts with two clients in Thailand and Malaysia and restructuring measures in the luxury goods business continue to take effect;
Business Unit Healthcare recorded net sales growth in almost all Asian markets;
Business Unit Performance Materials generated significantly higher results attributable to the increasing demand for performance materials for the development and expansion of local industries; and
Business Unit Technology also recorded an increase in net sales, while EBIT clearly dropped, with the order backlog for technological products for the remaining months of 2016 indicating more deliveries of higher-margin products.
Overall, it is evident that we continued our successful work here at DKSH in the first half-year. Yet, it is crucial that we continue to focus strictly on efficiency and driving performance to achieve profitable growth and attain excellent results for the remainder of 2016.
A recording of today’s media conference webcast will be available on the DKSH website, along with the Half-Year Report 2016.
The Fantree News is now eco-friendly!
I am pleased to announce that the summer edition of the Fantree News is now available only online. With this issue, we have moved away from the printing of our internal magazine to going fully digital. You can read the latest Group-wide news and events at anytime at fantreenews.dksh.com
With best personal regards,
Dr. Joerg Wolle