DKSH excels despite difficulites last year
DKSH, a provider of market expansion services with a focus on Asia, has reported the highest ever results in its history for 2016 despite challenging market conditions. The company announced yesterday an improvement in all key figures, in some cases considerably.
Compared to last year, net sales increased by 4.5 per cent, operating profit by 8.4 per cent and profit after tax by 6.7 per cent. The number of specialists reached more than 30,000 for the first time.
Organic growth constituted the greater part of the increase. The company generated strong growth particularly in Vietnam, Myanmar, Laos and Cambodia. In September, it successfully acquired the majority of Shanghai Sweets International (eSweets) in China and Hong Kong.
In Thailand, DKSH stabilised its growth rates that were slowing down due to the political challenges in 2015. In Malaysia, the investments in recent years are further paying off. In total, DKSH managed to continuously expand its leading positions in business units consumer goods and healthcare. Net sales of business units performance materials and technology rose due to higher demand for capital goods and specialty raw materials.
Joerg Wolle, the company’s president & CEO inThailand said, “last year was very special for us in Thailand: we celebrated our establishment 110 years ago, on the shores of the Chao Praya river. Still today, Thailand is by far the largest country operation of the entire DKSH Group, with some Bt118 billion net sales in 2016 alone and around 11,000 specialists throughout the Kingdom.
“From providing the ingredients to Mama noodles to delivering KitKat chocolate bars and life-saving medicines nationwide, DKSH touches the lives of millions of Thai people daily. We will continue our path of sustainable, profitable and inclusive growth, with and for the people of Thailand,” he said.
The restructuring measures initiated in the luxury goods business had a positive effect. Despite further market contractions, DKSH has improved results in this business significantly and, at the same time, successfully divested assets. These measures will continue this year.
Based on its solid business performance and continuous development of the company, a 15.4 per cent increase of the ordinary dividend to CHF 1.50 (Bt53) will be proposed to the Ordinary Annual General Meeting (AGM) on March 23, 2017. Payout of the ordinary dividend will rise from CHF 84.6 million to CHF 97.6 million. In addition, a special dividend of CHF 3.00 per share is proposed.
Wolle said the company had set itself ambitious targets and in spite of the economic difficulties, we not only achieved, but exceeded.
