DKSH reported core EBIT growth and strong cash conversion in 2024, with net sales reaching CHF 11.1 billion, representing a 4.0 per cent increase at constant exchange rates. Core EBIT rose to CHF 343.1 million, an 8.4 per cent increase at constant exchange rates, leading to a core EBIT margin of 3.1 per cent, marking the fourth consecutive year of margin expansion. Free cash flow was CHF 256.5 million, reflecting a cash conversion rate of 113.6 per cent. The board of directors has proposed a dividend of CHF 2.35 per share, a 4.4 per cent increase from the previous year.
DKSH CEO Stefan P. Butz said, “I am delighted to report that in 2024, DKSH further advanced on its consistent path of growth, margin expansion and cash conversion. All Business Units contributed both to net sales and Core EBIT growth (at CER) in a challenging market environment. Thanks to our highly committed and valued employees across all markets, we remained the trusted partner for our clients and customers and continued to fulfill our purpose of enriching people’s lives. We expect to continue to grow Core EBIT in 2025 and reiterate our mid-term roadmap.”
DKSH Group’s net sales growth was driven by organic expansion, which contributed 3.1 per cent, and acquisitions, which added 0.9 per cent. The impact of the stronger Swiss franc reduced net sales by 3.8 per cent. Core profit after tax increased to CHF 225.7 million, reflecting a 13.9 per cent rise at constant exchange rates compared to the previous year.
The healthcare business unit reported 6.0 per cent net sales growth at constant exchange rates, while core EBIT grew 11.0 per cent at constant exchange rates, marking the fourth consecutive year of core EBIT growth. The core EBIT margin increased by 10 basis points to 2.9 per cent, supported by strong underlying markets, business expansion with both existing and new clients, a shift towards higher-margin commercial outsourcing, and a continued focus on the own brands business.
The consumer goods business unit recorded a 1.6 per cent increase in net sales at constant exchange rates to CHF 3.4 billion, with core EBIT rising by 12.7 per cent at constant exchange rates. This growth was driven by market share gains in Vietnam, Australia, and New Zealand, alongside contributions from the beauty care acquisition CS&Co. The business unit exceeded its mid-term core EBIT margin target of 2.5 per cent, reaching 2.6 per cent in 2024.
The performance materials business unit achieved net sales growth of 1.2 per cent at constant exchange rates in a challenging market environment. Core EBIT was CHF 114.0 million, a 2.4 per cent increase at constant exchange rates, with the core EBIT margin rising to 8.1 per cent. Core EBITA grew by 2.1 per cent at constant exchange rates, reaching CHF 123.3 million, supported by strong performance in Asia Pacific across life sciences and industrial segments.
The technology business unit reported 6.9 per cent net sales growth at constant exchange rates. Core EBIT remained stable, growing by 0.6 per cent at constant exchange rates, reflecting resilience and continued strategy execution after a record performance in 2023. The business unit will focus on investments in scientific solutions, semiconductors and electronics, precision machinery, and consumables and services while capitalising on market consolidation opportunities, as demonstrated by the recent acquisition of CLMO.
DKSH announced changes to its board of directors ahead of its 92nd Annual General Meeting on March 27, 2025. Dr. Hans Christoph Tanner, who has served on the board since 2011, will not seek re-election. The board has proposed Suwannee Ratthayabandith as a new member. She previously served as Managing Director of Thai Union Life Science and has over 25 years of experience in the consumer goods industry, having held leadership positions at Beiersdorf and Bristol Myers Squibb. The board considers her independent, as she has no significant business relationship with DKSH Holding or any group company.
DKSH has reaffirmed its mid-term roadmap and expects core EBIT in 2025 to exceed 2024 levels, assuming economic growth in Asia Pacific, stable exchange rates, and no unforeseen disruptions. The company remains confident in Asia Pacific’s long-term potential and its ability to capitalise on market, industry, and M&A consolidation trends.