Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- DKSH Holding AG (SIX:DKSH) shares dipped 6% on Thursday after the Swiss firm reported first-half 2025 results that were mixed relative to expectations.
Organic growth came in at 1.8% year-on-year, below the company-compiled consensus of 2.7%.
However, core EBIT of CHF 169.3 million was nearly in line with the expected CHF 169.7 million.
Across business units, Healthcare delivered the strongest performance, with organic growth of 3.7%, slightly below the 4.0% consensus.
Consumer Goods declined 0.5%, missing the expected 0.5% growth. UBS analysts said the miss is "unlikely to be a significant surprise in our view given weak consumer data in
Thailand, HK etc." The company anticipates improvement in the second half as business development initiatives gain traction.
Performance Materials (PM) posted organic growth of 0.8%, falling well short of the 4.0% estimate. The miss likely reflects "a stronger Q1 followed by a softer Q2 in our view," UBS wrote.
Technology grew 0.5%, just under the 0.9% forecast, as macro uncertainty delayed investment decisions in the first half. Growth in this segment is expected to accelerate later in the year.
Core EBIT margin rose 10 basis points to 3.1%, matching consensus and demonstrating resilience despite softer top-line growth.
"Organic growth was a miss vs. expectations, with investors likely to pay most attention to trends in PM and Consumer in our view," UBS analysts continued. "Given the weaker top-line, the resilient margin performance should offer some reassurance."
DKSH reaffirmed its full-year guidance and continues to expect FY2025 core EBIT to exceed the prior year, citing stronger business momentum toward the end of the first half.