DKSH (DKSH) H2 2023 earnings summary

Executive summary

• FY 2023 net sales rose 5.3% at CER, Core EBIT grew 12.6% at CER, and Core EBIT margin expanded 15 bps to 3.0%.

• Free cash flow reached CHF 282.3 million, with cash conversion of 137.0%; the proposed ordinary dividend increased 4.7% to CHF 2.25 per share.

Financial highlights

• Net sales were CHF 11,066.0 million versus CHF 11,320.2 million in FY 2022; CER growth was 5.3%.

• Core EBIT was CHF 329.9 million versus CHF 319.2 million; CER growth was 12.6%, including single-digit organic growth and margin-accretive M&A.

• Core profit after tax was CHF 206.0 million versus CHF 208.4 million; CER growth was 5.8%.

• Free cash flow rose to CHF 282.3 million from CHF 209.5 million; cash conversion improved to 137.0% from 100.5%.

Outlook and guidance

• FY 2024 commitment: sales growth above weighted GDP at CER in fast-growing Asian markets and Core EBIT growth at CER.

• FY 2024 indications: M&A contribution to net sales of 0.5%–1.5%, FX impact of (3%)–(5%) if current spot rates prevail, tax rate of 27%–29%, and capex of 0.5% of net sales.

• Outlook assumes Asia Pacific economic growth and stable exchange rates, and is subject to unforeseen events.