Delivering performance-driven profitable growth
Generating profitable growth enables us to have a greater positive impact on the world and to deliver value for all stakeholders. The key driver of our growth, beyond the underlying trends of the areas in which we operate, is the continued expansion of our offering to customers. By harnessing our innovation expertise and emerging bioscience and digital technology, and complemented through acquisition, we develop new business models and solutions that increase our customer intimacy and improve their and our own productivity and efficiency.
In this way we aim to deliver ambitious mid-term profit targets:
- Mid-single digit % organic sales growth
- An above 20% adjusted EBITDA margin
- High-single digit % adjusted EBITDA growth
Our cash allocation policy has a clear order of priority:
- Disciplined capital expenditure for organic growth: approximately 6.5% of annual sales
- A stable, preferably rising dividend
- Disciplined M&A
- In the absence of value-creating M&A, capital to be returned to shareholders
We are committed to maintaining a strong investment-grade credit rating. DSM’s policy is to have a stable, preferably rising, dividend, targeting an average payout of 40–50% of adjusted earnings.
Our strategy helps us make the right capital allocation choices including the selection of acquisition targets and the development of our Health, Nutrition & Bioscience portfolio, for the benefit of all stakeholders.