• Terror attacks in Thailand have limited impact on DKSH
• DKSH expects net sales and profit for 2015 similar to last year's levels
• Intact growth drivers in Asia support sustainable growth
• Proven progressive dividend policy will continue
Media release
Zurich, Switzerland, October 15, 2015 – DKSH (SIX: DKSH), the leading Market Expansion Services provider with a focus on Asia, announced in mid-August that the effects of the terror attacks on business had to be monitored in more detail. DKSH now communicates the results of this analysis.
Terror attacks in Thailand have limited impact on DKSH
The tense political situation, that has been ongoing for some time in Thailand, has mainly led to a lower demand for luxury goods, lifestyle products and upscale consumer goods for daily use. Furthermore, the terrorist attacks have weakened tourism levels. Moreover, as a temporary negative factor, a very intense drought in Northeast Thailand has reduced the purchasing power of the rural population. All these events have affected consumer confidence and caused a slowdown of growth in Thailand. The World Bank therefore recently lowered its economic growth forecast for 2015 from 3.5% to slightly above 2.0%.
With a focus on Business Units Consumer Goods and Healthcare, DKSH generates about one-third of net sales and comparable profit levels in Thailand. The terrorist attacks have a limited impact on DKSH due to the fact that Business Unit Healthcare is much less affected by the weakened consumer confidence.
DKSH faces similar short-term challenges in Malaysia where DKSH generates around 15% of net sales. In this market, political tensions, weak commodity prices and the resulting currency depreciation have impacted consumer confidence.
From today's perspective and despite these very challenging circumstances, DKSH expects net sales and profit for 2015 similar to last year's levels.
Long-term growth drivers in Asia remain intact
Due to its diversified and robust business model and the intact long-term growth drivers in Asia, as well as assuming a mid-term recovery in most affected countries, DKSH is confident of achieving sustainable net sales and profit growth at constant exchange rates in 2016 and following years.
DKSH continues with its proven progressive dividend policy.
For further information please contact:
DKSH Holding Ltd.
Till Leisner
Head Investor & Media Relations
Phone +41 44 386 7315
till.leisner@dksh.com
About DKSH Group
DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets. Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 750 business locations in 35 countries – 720 of them in Asia – and 27,600 specialized staff, DKSH generated net sales of CHF 9.8 billion in 2014. The company offers a tailor-made, integrated portfolio of sourcing, marketing, sales, distribution and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials and Technology. In 2015, DKSH celebrates its 150th anniversary. With strong Swiss heritage, the company has a long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.