May 7, 2020 / 6:00 AM / 20 days ago

BRIEF-DSM Reports Stable EBITDA For Q1, Suspends Outlook

May 7 (Reuters) - KONINKLIJKE DSM NV:

* GROUP SALES AND ADJUSTED EBITDA STABLE

* ADJUSTED NET PROFIT UP 8% TO EUR 216M. NET PROFIT: EUR 168M

* STRONG ADJUSTED NET OPERATING FREE CASH FLOW OF EUR 151M, UP 152%

* OUTLOOK 2020: EXPECTS NUTRITION TO DELIVER AT LEAST MID-SINGLE DIGIT INCREASE IN ADJUSTED EBITDA, BUT GIVEN CURRENT LIMITED VISIBILITY IN MATERIALS OVERALL EARNINGS OUTLOOK IS SUSPENDED AT THIS TIME

* DSM ESTIMATES THAT NUTRITION OVERALL SAW A SLIGHT INCREASE OF ABOUT 1% ON ITS Q1 SALES FROM COVID-19

* MATERIALS SAW NEGATIVE IMPACT OF ABOUT 7% OF SALES WITH MAIN EFFECT AT END OF QUARTER AS CUSTOMERS’ OPERATIONS WERE SEVERELY IMPACTED BY COVID-19 MEASURES

* Q1 GROUP SALES EUR 2.29 BILLION VERSUS EUR 2.29 BILLION YEAR AGO

* TAKING ACTIONS IN MATERIALS TO LIMIT CAPITAL EXPENDITURE AND OPERATING COSTS TO PROTECT EARNINGS AND CASHFLOW WITHOUT COMPROMISING MEDIUM- AND LONG-TERM POTENTIAL OF BUSINESSES

* COMPANY HAS NO BOND MATURITIES IN 2020 AND 2021

* STRONG BALANCE SHEET AND AVAILABLE LIQUIDITY, WITH Q1 2020 NET DEBT TO EBITDA OF 0.8X

* DSM BELIEVES IT PRUDENT TO PAUSE REMAINDER OF ITS EUR 1 BILLION SHARE BUY-BACK PROGRAM, LAUNCHED IN 2019

* UNDRAWN REVOLVING CREDIT FACILITIES OF EUR 1.5 BILLION

* DSM’S DIVIDEND PROPOSAL FOR APPROVAL AT ITS AGM ON 8 MAY 2020 REMAINS EUR 2.40 PER SHARE, AS COMMUNICATED IN FEBRUARY 2020, UP 4% VERSUS 2019

* WILL CONTINUE TO REINVEST CAPITAL INTO DRIVING ORGANIC GROWTH VIA DISCIPLINED CAPEX

* BELIEVES IT PRUDENT TO PAUSE REMAINDER OF EUR 1 BILLION SHARE BUY-BACK PROGRAM, LAUNCHED IN 2019, AS PRECAUTION GIVEN CURRENT ENVIRONMENT Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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