The company’s CEO, Feike Sijbesma, stated that, after a transformative five years from 2010 to 2015, their Strategy 2015-18 has been “highly successful”.
“DSM will evolve further towards a purpose-led, science-based company in Nutrition, Health and Sustainable Living,” he stated. “We have created a strong platform for growth, centered on developing innovative solutions addressing Nutrition & Health, Climate & Energy and Resources & Circularity.
“Organic growth will be complemented by acquisitions predominantly in Nutrition.”
“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."
Focus on human nutrition and personalization
The company is aiming to achieve high single-digit annual percentage growth in adjusted EBITDA from 2019 to 2021, with a 10% average yearly increase in adjusted net operating cash flow.
These financial targets will be supported by a “holistic value-creation approach”, said the company, with 20% of its sales to come from innovation and 45% to come from high-growth economies.
“DSM continues to invest in differentiating science and technology with circa 5% of sales,” it stated.
The company also noted that its nutrition business will focus on human nutrition, and this will include ingredients and solutions for food and beverages, plus specialty nutrition, nutritional ingredients, consumer branded products, and personalized nutrition. There will also be a focus on animal nutrition (all species with premix and specialty solutions) and personal care and aroma ingredients.
DSM will also deploy capital in M&A with nutrition the main beneficiary, “given its growth potential, resilience, strong leadership position and value creation potential”, said the company.
Through its venturing arm, DSM has been investing in a number of innovative companies over the last couple of years, including Tespo, Mixfit, Prenexus, Natreon, and Nutrileads.