DKSH (DKSH) H1 2026 earnings summary

Executive summary

• Net sales reached CHF 5.5 billion in H1 2026, up 4.9% at constant exchange rates, marking the strongest first-half growth in three years, with all business units contributing positively.

• Core EBIT grew 3.6% at CER to CHF 163.4 million, with a margin of 3.0%, impacted by FX headwinds and investments in business development and AI.

• Earnings per share increased by 18.2% to CHF 1.67, and free cash flow reached CHF 147.7 million, with a 130.8% cash conversion rate.

• Three acquisitions were announced in higher-margin areas in H1 2026, with a robust M&A pipeline for H2.

• Entering H2 2026 with strong commercial momentum and confidence in delivering sustainable Core EBIT growth.

Financial highlights

• Net sales: CHF 5,470.9 million (up 4.9% at CER, down 0.9% in CHF year-over-year).

• Core EBIT: CHF 163.4 million (up 3.6% at CER, down 3.5% in CHF year-over-year); Core EBIT margin at 3.0%.

• Core profit after tax: CHF 112.9 million, up 12.9% at CER.

• Free cash flow: CHF 147.7 million, up 21.5% year-over-year; cash conversion: 130.8%.

• EPS: CHF 1.67, up 18.2% year-over-year.

Outlook and guidance

• Expects Core EBIT in 2026 to be higher than in 2025, assuming stable economic growth in Asia Pacific and constant exchange rates.

• Mid-term roadmap reaffirmed, with confidence in long-term growth opportunities across Asia Pacific.

• M&A contribution to net sales growth estimated at ~1% for 2026, with further upside possible from additional deals.

• Tax rate expected in the 27%-29% range; capital expenditure to remain at 0.3%-0.4% of net sales.

• Anticipated closing of Biomedic Science Material and AIC Ingredients acquisitions in Q3 2026.