DSM will step up its ambitions on greenhouse gas emissions, energy efficiency and use of renewable energy – as well as implementing new targets for sustainable financial management – as part of its strategy for the next three years.
The Dutch company has reaffirmed some of the financial guidance it set following the announcement of its first-quarter results in May, in which it announced group sales of €2.44 billion.
It will continue to position itself as “a nutrition, health and sustainable living company”, it said. DSM also claimed it would better harness digital capabilities to increase customer intimacy, improve productivity and efficiency, and support new business models.
DSM CEO Feike Sijbesma said: “Our Strategy 2015-18 has been highly successful. After transforming DSM over the period 2010-15, we delivered strong growth with greatly improved operational and financial performance and significant value creation in all our businesses. In addition, we took important steps to monetise our non-core pharma and bulk chemicals joint-ventures. DSM has become a growth company with ambitious sustainability efforts creating value for all stakeholders across the three dimensions of ‘People, Planet and Profit’.
“DSM will evolve further towards a purpose-led, science-based company in nutrition, health and sustainable living. We have created a strong platform for growth, centred on developing innovative solutions addressing nutrition and health, climate and energy, and resources and circularity. Increased customer centricity and large innovation projects will enable above-market growth, while we will remain focused on cost control and operational excellence, allowing us to accelerate profit and cash generation.”
There is also the possibility of acquisitions activity ahead for DSM, with Sijbesma committing to complement organic growth through acquisitions – predominantly in nutrition.
It is aiming for a 25% dividend increase throughout this year, with future dividend growth aligned with long-term earnings growth.
“I am convinced that our strategy will create further significant value for all our stakeholders and the step-up in the dividend demonstrates our confidence in the future.”
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