5 Net sales and costs

Net sales

 

2019

2018

 
 
 

Goods sold

8,833

9,091

Services rendered

159

164

Royalties

18

12

 
 
 

Total

9,010

9,267

Fulfillment of the performance obligations related to goods sold is measured using the commercial shipment terms as an indicator for the transfer of control. Fulfillment of the performance obligations for services rendered is identified according to the individual contract. The payment terms are determined per business segment on a customer basis. DSM has neither specific obligations for returns or refunds, nor specific warranties or other related obligations.

Disaggregation of net sales

 

2019

2018

 
 
 

Nutrition

 
 

DSM Nutritional Products:

 
 
  • Animal Nutrition & Health

2,892

3,134

  • Human Nutrition & Health

2,046

2,019

  • Personal Care & Aroma Ingredients

425

382

  • Other

93

112

 

5,456

5,647

DSM Food Specialties

572

490

Total

6,028

6,137

 
 
 

Materials

 
 

DSM Engineering Plastics

1,406

1,516

DSM Dyneema

338

344

DSM Resins & Functional Materials

1,002

1,053

 
 
 

Total

2,746

2,913

 
 
 

Innovation Center

194

172

 
 
 

Corporate Activities

42

45

 
 
 

Total

9,010

9,267

Total costs


In 2019, total operating costs amounted to €8.1 billion, €0.1 billion higher than in 2018, when these costs stood at €8.0 billion. Total operating costs in 2019 included Cost of sales amounting to €6.0 billion (2018: €5.9 billion); gross margin as a percentage of net sales stood at 34% (2018: 37%).

Employee benefit costs

 

2019

2018

 
 
 

Wages and salaries

1,474

1,433

Social security costs

187

185

Pension costs (see also Note 24)

116

110

Share-based compensation (see also Note 27)

34

25

 
 
 

Total

1,811

1,753

Depreciation, amortization and impairments

 

2019

2018

 
 
 

Amortization of intangible assets

175

149

Depreciation of property, plant and equipment

347

320

Depreciation of right-of-use assets

50

-

Impairment losses

60

40

 
 
 

Total

632

509

Other operating income

 

2019

2018

 
 
 

Release of provisions

6

8

Gain on sale of assets and activities

7

25

Insurance benefits

16

18

Amendments/settlements to pension plans

16

11

Earn-out payments and other settlements

48

10

Release translation reserve

11

-

Legal settlements

8

2

Sundry

34

30

 
 
 

Total

146

104

Other operating expense

 

2019

2018

 
 
 

Additions to provisions

67

36

Exchange differences

10

7

Acquisitions/Disposals

11

7

Earn-out Amyris Brasil

-

11

Sundry

20

22

 
 
 

Total

108

83