Episode 1030: Think Tank: Distributor DKSH sees slowdown in demand; turning point possible Q4 ‘23/Q1 ‘24

BARCELONA (ICIS)—Distributor DKSH has observed a contraction in demand since Q4 2022 in some sectors with others maintaining growth but remains focussed on transforming the business to create geographic and product balance through mergers & acquisitions (M&A) and organic growth.-              Southeast Asia still growing but has slowed compared to recent years-              China –  manufacturing industry sees domestic, export demand falling, oversupply, margin pressure; slight increase in demand in H2-              Japan – macroeconomic stagnation but DKSH sees growth in specialties, life sciences-              DKSH may benefit from consumer move to low cost products especially in food, personal care-              Downturn longer, deeper and more impactful than 2007/2008 -              Globally industrial demand depressed, turning point possible Q4 2023/Q1 2024-              North America – Q4 2022 customers stopped ordering, particularly in construction -              Europe affected by inflation, energy prices, industrial policy-              Personal care, food, pharma fare better than industrials-              DKSH aims for balance between life sciences, industrials-              M&A targets Europe, US, Asia Pacific to help balance regions-              Digitalization, artificial intelligence to transform distribution