Zurich, Switzerland, February 6, 2017 - DKSH, the leading Market Expansion Services provider with a focus on Asia, reports the highest ever results in its history for 2016 despite challenging market conditions. The company announced today that it improved all key figures, in some cases even considerably.

Compared to last year, net sales increased by 4.5%, operating profit (EBIT) by 8.4% and profit after tax by 6.7%. The number of specialists reached more than 30,000 for the first time.

Organic growth constituted the greater part of the increae, DKSH generated strong growth particularly in Vietnam, Myanmar, Laos and Cambodia. In September, DKSH successfully acquired the majority of Shanghai Sweets International (eSweets) in China and Hong Kong.

In Thailand, DKSH stablised growth rates that were slowing due to political challenges in 2015. In Malaysia, the investments of recent years are further paying off. In total, DKSH managed to continously 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.

The margin in Business Unit Consumer Goods recovered despite a 4.0% (-3.6% at CER) lower net sales figure of CHF 3.8 billion. As part of the portfolio optimization, DKSH decided to discontinue contracts with two clients in Thailand and Malaysia in 2015. Excluding this, net sales would have growth slightly. Whereas demand for consumer goods in Thailand remained at low levels, DKSH reported significant improvements in Malaysia. In Hong Kong, the economic slowdown led to a significant drop in consumption.

Business Unit Healthcare reported an increase in net sales of 10.3% (11.1% at CER) to CHF 5.5 billion, thereby recording net sales growth in almost all Asian markets. EBIT fell by 10.8% and reached CHF 134.4 million (-9.8% at CER), due to one-time contract adjustments. As expected, business performance was better in the second half-year of 2016.

Business Unit Performance Materials generated significantly higher results. Net sales came in at CHF 870.6 million, 11.3% above the level of 2015 (6.9% at CER). Improvements are mainly attributable to the increasing demand for specialty raw materials to develop and expand local industries. EBIT increased by 49.8% to CHF 77.0 million (40.1% at CER). This performance was supported by all regions, in particular by strong growth in the core market of Japan.

Based on the very solid business performance and continously good development of the company, a 15.4% increase of the ordinary dividend to CFH 1.50 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.

From today's perspective, net sales and profit growth should continue for DKSH.

http://www.dksh.com/global-en/home/investors/financial-results-and-presentations