DKSH, a Zurich based the leading market expansion services provider with a focus on Asia, has posted net sales growth of 7.1 per cent in 2014 to CHF 10,241 million from CHF 9,559 million in the previous year. However, its net profit declined by 16.7 per cent to CHF201 million from CHF 242 million due to challenging environment in Thailand, China, Hong Kong and Japan. The board of directors has decided to increase dividend to CHF 1.15 per share for the financial year 2014 which will be 21 per cent higher than last year and represent a payout ratio of 38.9 per cent.

The economic implications of the challenging political situation in Thailand were more profound and enduring than expected, which led to lower demand for higher-margin luxury and lifestyle products as well as consumer goods and resulted n reduced industrial investments. The further depreciation of the Japanese yen, the political unrest in Hong Kong and the reduced demand for luxury products in China impacted business additionally.  

DKSH is engaged in four specialized business units viz., consumer, goods, healthcare, performance materials and technology.

Dr Joerg Wolle, president & CEO of DKSH commented: “This year, DKSH will celebrate its 150th anniversary. The growth achieved in a highly challenging market environment reflects the ongoing attractiveness of our business model. The growth prospects for our markets and Business Units are promising. With our diversified and scalable business model, DKSH is ideally positioned to benefit from the growing middle classes, rising inner-Asian trade and increased outsourcing to specialist services providers.”

Building on this solid basis, DKSH expects a continued dynamic net sales growth and double-digit EBIT growth at constant exchange rates in 2015. Looking into 2016, DKSH continues to project net sales of around CHF 12 billion at constant exchange rates (compound annual growth rate of 8 per cent between 2013 and 2016). For the same period, DKSH anticipates an operating profit (EBIT) of around CHF 380 million at constant exchange rates (compound annual growth rate of 10 per cent between 2013 and 2016), which should translate into profit after tax of some CHF 270 million at constant exchange rates.