dsm-firmenich Q3 2024 trading update

Kaiseraugst (Switzerland), Maastricht (Netherlands), October 31, 2024

Management Report

Q3 2024 highlights 

• Strong improvement of financial results
• Synergies and vitamin transformation programs firmly on track
• Animal Nutrition & Health separation well advanced
• Strategic portfolio fine-tuning progressing with the sale of marine lipids and yeast extracts
• Higher vitamin prices reflected in Animal Nutrition & Health contracts as of Q4
• Full-year outlook increased: Adjusted EBITDA towards €2.1 billion

Key figures

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

Dimitri de Vreeze, CEO, commented: “Our business maintained positive momentum through the third quarter, supported by our own improvement programs and strong performances in Perfumery & Beauty and Taste, Texture & Health. Health, Nutrition & Care saw a further gradual improvement in organic sales growth, while Animal Nutrition & Health saw good momentum in its business. 

Our comprehensive program of sales and cost synergies, together with the vitamin transformation program continue to deliver according to our expectations, driving good financial performance and underpinning our innovation-driven growth strategy. At the same time, our strategic actions, including the carve-out of Animal Nutrition & Health and divestments of de-prioritized activities, are progressing well. 

Recently, we marked a key milestone in sustainability with our ambitious net-zero emissions targets receiving validation from the Science Based Targets initiative.”

Outlook 2024

During the quarter, the vitamin market experienced a supply disruption event. The resulting increase in some vitamin prices will lead to a significant temporary profit contribution of around €80 million in the fourth quarter. Consequently, the company increases its FY 2024 outlook and now expects Adjusted EBITDA towards €2.1 billion.

Key figures

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

Q3 2024

• Strong performance in Perfumery & Beauty and in Taste, Texture & Health
• Health, Nutrition & Care saw a further gradual improvement in business conditions
• Significant step-up in financial results of Animal Nutrition & Health

In the third quarter, positive business conditions continued, driving 8% organic sales growth and a further improvement in financial results. 

In early August, a supply disruption in the industry led to price increases in some vitamins, especially affecting vitamins A and E. This had a very limited impact on the third quarter results as volumes were already largely contracted and production capacity was limited due to planned stops. These higher prices will be reflected in the fourth quarter.

Adjusted EBITDA increased 32%, owing to strong organic sales growth, contributions from the synergies and the vitamin transformation program and despite a negative foreign exchange effect of around €15 million. Adjusted EBITDA margin was 16.7%, up 330 bps versus the same period last year.

The company remains focused on cash flow generation improvement and delivered a good step up in Adjusted gross operating free cash flow to €879 million in the first nine months of the year. 

Note for editors

The full text of the press release is available here.

The presentation to investors is available here.

For more information

Media relations

Robin Roothans

tel. +41 (0)79 280 03 96

e-mail media@dsm-firmenich.com

Investor relations

Dave Huizing

tel. +31 (0)88 425 7306

e-mail investors@dsm-firmenich.com

About dsm-firmenich

As innovators in nutrition, health, and beauty, dsm-firmenich reinvents, manufactures, and combines vital nutrients, flavors, and fragrances for the world’s growing population to thrive. With our comprehensive range of solutions, with natural and renewable ingredients and renowned science and technology capabilities, we work to create what is essential for life, desirable for consumers, and more sustainable for the planet. dsm-firmenich is a Swiss-Dutch company, listed on the Euronext Amsterdam, with operations in almost 60 countries and revenues of more than €12 billion. With a diverse, worldwide team of nearly 30,000 employees, we bring progress to life™ every day, everywhere, for billions of people. www.dsm-firmenich.com

Forward-looking statements

This press release may contain forward-looking statements with respect to dsm-firmenich’s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of dsm-firmenich and information currently available to the company. dsm-firmenich cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance, transaction progress and positions to differ materially from these statements. dsm-firmenich has no obligation to update the statements contained in this press release, unless required by law. This communication contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. The English language version of this press release prevails over other language versions.