DSM Integrated Annual Report 2020

5 Net sales and costs (continuing operations)

Net sales

 

 

2020

 

2019

 

 

 

 

 

Goods sold

 

7,931

 

7,821

Services rendered

 

158

 

159

Royalties

 

17

 

18

Total

 

8,106

 

7,998

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

 

 

2020

 

2019

 

 

 

 

 

Nutrition

 

 

 

 

- Animal Nutrition & Health

 

3,025

 

2,892

- Human Nutrition & Health

 

2,143

 

2,046

- Personal Care & Aroma Ingredients

 

404

 

425

- Other

 

145

 

93

DSM Nutritional Products

 

5,717

 

5,456

 

 

 

 

 

DSM Food Specialties

 

648

 

572

Total Nutrition

 

6,365

 

6,028

 

 

 

 

 

Materials

 

 

 

 

DSM Engineering Materials

 

1,217

 

1,406

DSM Protective Materials

 

301

 

338

Total Materials

 

1,518

 

1,744

 

 

 

 

 

Innovation Center

 

184

 

184

 

 

 

 

 

Corporate Activities

 

39

 

42

 

 

 

 

 

Total

 

8,106

 

7,998

Total costs

In 2020, total operating costs amounted to €7.4 billion, €0.3 billion higher than in 2019, when these costs stood at €7.1 billion. Total operating costs in 2020 included Cost of sales amounting to €5.3 billion (2019: €5.2 billion); gross margin as a percentage of net sales stood at 34% (2019: 35%).

Employee benefit costs

 

 

2020

 

2019

 

 

 

 

 

Wages and salaries

 

1,373

 

1,347

Social security costs

 

164

 

172

Pension costs (see also Note 24)

 

118

 

104

Share-based compensation (see also Note 27)

 

29

 

34

Total

 

1,684

 

1,657

Depreciation, amortization and impairments

 

 

2020

 

2019

 

 

 

 

 

Amortization of intangible assets

 

193

 

167

Depreciation of property, plant and equipment owned

 

344

 

311

Depreciation of right-of-use assets

 

50

 

48

Impairment losses

 

119

 

59

Total

 

706

 

585

Other operating income

 

 

2020

 

2019

 

 

 

 

 

Release of provisions

 

11

 

6

Gain on sale of assets and activities

 

-

 

7

Insurance benefits

 

29

 

16

Amendments / settlements to pension plans

 

-

 

16

Earn-out payments and other settlements

 

7

 

47

Release translation reserve

 

-

 

11

Legal and other settlements

 

23

 

8

Sundry

 

32

 

31

Total

 

102

 

142

Other operating expense

 

 

2020

 

2019

 

 

 

 

 

Additions to provisions

 

93

 

67

Exchange differences

 

18

 

9

Acquisitions / Disposals

 

55

 

11

Sundry

 

34

 

20

Total

 

200

 

107