DKSH (DKSH) H1 2025 earnings summary

Executive summary

• Net sales increased by 2.1% at constant exchange rates (CER) to CHF 5.5 billion in H1 2025, with core EBIT up 5.1% to CHF 169.3 million and margin expansion to 3.1%, despite global economic and market uncertainty.

• Free cash flow remained strong at CHF 121.6 million, with a cash conversion rate of 117.5%.

• Five acquisitions were announced in H1 2025, supporting strategic expansion and a robust M&A pipeline for H2.

• Recognized for sustainability and workplace excellence, including EcoVadis gold medal and Great Place to Work certification in 15 markets.

• Continued delivery on mid-term roadmap KPIs: growth above GDP, margin expansion, and high cash efficiency.

Financial highlights

• Net sales reached CHF 5.5 billion, up 2.1% year-over-year at CER; core EBIT increased 5.1% to CHF 169.3 million, with a margin of 3.1%.

• Core profit after tax was CHF 103.5 million, down 10.3% due to higher finance expenses and FX losses.

• Free cash flow was CHF 121.6 million, with a cash conversion rate of 117.5%.

• Ordinary dividend increased for the 12th consecutive year to CHF 2.35 per share.

• Net debt nearly neutral at CHF 3.5 million; equity ratio 31.7%.

Outlook and guidance

• Confirms guidance for higher core EBIT in 2025 versus 2024 at constant FX, assuming continued Asia Pacific growth and no unforeseen events.

• Expects continued M&A activity in H2, with more material contributions anticipated.

• FX headwinds expected to persist, with a projected negative 2–3% impact for the full year.

• Capital expenditure to remain between 0.3% and 0.4% of net sales for the year.

• No material top-up tax exposure from BEPS Pillar 2 for 2025.