dsm-firmenich reports full year 2024 results

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.

Key figures on an IFRS basis

² Represents the figures on an IFRS basis, including the Firmenich results as of the merger date May 8, 2023.

Dimitri de Vreeze, CEO, commented: “I am proud that we have delivered on our commitments in 2024 and have firmly established ourselves as a leading innovation-focused consumer company in nutrition, health & beauty. We redefined our strategic course with the announcement of the separation of Animal Nutrition & Health and the tuning of our portfolio which is well-progressed with the sale of marine lipids, yeast extracts, our minority stake in Robertet, and our stake in the Feed Enzymes Alliance with Novonesis.

At the same time, we delivered strongly improved financial results in all our businesses, benefitting from better business conditions, and supported by a €200 million Adjusted EBITDA contribution from the merger synergies and the vitamin transformation program. We were also successful in substantially improving our cash flow ahead of our mid-term target.

These achievements, together with the ongoing good momentum in our end markets, lead us to a positive full year outlook for 2025, which includes around €200 million Adjusted EBITDA from further cost and revenue synergies, and the vitamin transformation program. With the confidence we have in our earnings growth potential and the strong balance sheet, we have decided to initiate a €1 billion share buyback program. Moving forward, we will continue to execute our strategic plan, including exiting Animal Nutrition & Health and fully focusing on growing our innovation-driven core activities. Hence, we are fully on-track to meet our mid-term ambitions.”

2025 Plan

• Acceleration of innovation and creation-led organic sales growth
• Delivery of further cost and sales synergies for about €100 million to Adjusted EBITDA
• Completion of the vitamin transformation program, with a contribution of about €100 million to Adjusted EBITDA
• Exiting Animal Nutrition & Health and finalizing the tuning of our portfolio as announced at the 2024 CMD
• Strengthening our sustainability leadership for People and Planet

Outlook 2025

For the group, we estimate a full year Adjusted EBITDA of at least €2.4 billion, which includes at least €100 million contribution from the temporary vitamin price effect from a supply disruption in the vitamin market.

Strategy

At its capital markets day in Paris on June 3, 2024, dsm-firmenich defined its strategy to better leverage its unique portfolio and capabilities to further strengthen its position as a global leader in nutrition, health, and beauty, and maximising the synergy potential of the merger.

The company is focusing on its consumer activities after having announced plans to separate the Animal Nutrition & Health business from the Group and after tuning the portfolio by deprioritizing certain activities, that contribute more than €600 million in annual sales. In 2024, the company sold two of these activities, representing about €300 million in annual sales, the yeast extract business to Lesaffre and the marine lipids activities to KD Pharma Group. In addition, the company sold its stake in Robertet for almost €400 million.

With these strategic actions, the company wants to accelerate its innovation-led growth by prioritizing the high-growth and high-margin segments of Perfumery & Beauty (P&B), Taste, Texture & Health (TTH) and Health, Nutrition & Care (HNC), with the following mid-term financial targets for dsm-firmenich in its new scope:

• Organic Sales Growth: 5-7%
• Adjusted EBITDA margin: 22-23%
• Cash-to-sales conversion: >10%

Delivering synergies through integration

dsm-firmenich is on track to achieve its target synergies contributing approximately €350 million to Adjusted EBITDA. Around half of this is expected to come from cost efficiencies. The other half of the synergies are expected from incremental revenues of €500 million driven by complementary capabilities and realized in all three business units of the Group’s new scope: 60% in TTH, 25% in HNC and 15% in P&B. Since the merger, the company has realized over €120 million contribution to Adjusted EBITDA from synergies. In 2025, the company expects to realize a further contribution of around €100 million to Adjusted EBITDA.

Vitamin transformation program

Mid-2023, the company launched a program to reduce costs and restore profitability in its vitamin activities, expected to generate an estimated contribution to Adjusted EBITDA of around €200 million. These savings are incremental to the €350 million Adjusted EBITDA synergies target.

In 2024, the vitamin transformation program contributed around €100 million to Adjusted EBITDA. In 2025, the company expects to realize the remaining contribution of around €100 million to Adjusted EBITDA.

Separation of Animal Nutrition & Health from the Group

In February 2024, dsm-firmenich announced its intention to separate the Animal Nutrition & Health business from the company having concluded a different ownership structure would best realize its full potential. Furthermore, through this process, the company would reduce its exposure to vitamins earnings volatility and its capital intensity, in-line with its long-term strategy.

On February 11, 2025, dsm-firmenich announced the sale of its stake in the Feed Enzymes Alliance to its equal partner, Novonesis for €1.5 billion. With the scope of the separation of the Animal Nutrition & Health business now defined, next week dsm-firmenich will begin the process of seeking transaction options to exit Animal Nutrition & Health, which is expected in the course of 2025.

Stable dividend

At the Annual General Meeting on May 6, 2025, the Board of Directors of dsm-firmenich will propose a cash dividend of €2.50 per share for the financial year 2024. Of this total dividend, €1.44 to be paid out of capital contribution reserves without deduction of any Swiss withholding tax. The remaining €1.06 to be paid out of available earnings and therefore subject to 35% Swiss withholding tax.

New share buyback program

dsm-firmenich intends to repurchase ordinary shares with an aggregate market value of €1 billion and reduce its issued capital. This program is planned to start in Q2 2025 for an initial €500 million and will be increased to €1 billion upon the completion of the sale of dsm-firmenich’s stake in the Feed Enzymes Alliance. This program is targeted to be completed by Q2 2026. The company remains committed to its strong investment grade credit ratings.

Key figures and indicators

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.

² Restated for comparative purposes. 

Key figures and indicators on an IFRS basis

³ Represents the figures on an IFRS basis, including the Firmenich results as of the merger date May 8, 2023. 

dsm-firmenich FY 2024 and Q4 

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.

FY 2024

• Very strong performance in Perfumery & Beauty and Taste, Texture & Health
• Solid performance on better business conditions in Health, Nutrition & Care through the second half of the year
• Significant step-up in financial results in Animal Nutrition & Health

Business conditions markedly improved during the year. Perfumery & Beauty and Taste, Texture & Health saw very strong demand throughout the year. Health, Nutrition & Care saw business momentum improving in the second half of the year with demand for Dietary Supplements and Early Life Nutrition picking up. Animal Nutrition & Health delivered a strong performance owing to continued strong demand for Performance Solutions throughout the year, together with the normalization of vitamin profitability during the second half of the year. In addition, in Q4 the business benefited from the additional temporary vitamin price effect related to a supply disruption in the vitamin market.

Adjusted EBITDA was up 19% owing to the good organic sales growth, and the contributions from the synergies, the vitamin transformation program and the temporary vitamin price effect in Q4. The Adjusted EBITDA includes a negative foreign exchange effect estimated at €50 million.

In 2024, synergies contributed around €105 million to Adjusted EBITDA, predominantly cost-led. The revenues from the sales synergies accounted for about €50 million in 2024. In 2025, the company expects an additional €100 million Adjusted EBITDA contribution from cost and sales synergies.

Adjusted gross operating free cash flow amounted to €1,552 million, up 55% from the prior period, driven by Adjusted EBITDA growth and operating working capital discipline.

Q4 2024

• Good performance in Perfumery & Beauty and Taste, Texture & Health
• Better performance in Health, Nutrition & Care on improved business conditions
• Strong performance in Animal Nutrition & Health on better underlying business conditions, further enhanced by the temporary vitamin price effect

Both Perfumery & Beauty and Taste, Texture & Health delivered a good result in Q4 which is seasonally a low quarter in the year. Health, Nutrition & Care had a good performance, with strong results in i-Health and Biomedical, and improving demand for Dietary Supplements and Early Life Nutrition. Animal Nutrition & Health saw continued strength in Performance Solutions and ongoing improvement in the overall business conditions with improving vitamin profitability. In addition, it benefited from a temporary vitamin price effect.

Adjusted EBITDA was up 37% owing to a very good organic sales growth, the year-on-year contribution of about €45 million from the vitamin transformation program and synergies and about €85 million from the temporary vitamin price effect in Animal Nutrition & Health, partially offset by a negative foreign exchange effect estimated at €10 million. The resulting Adjusted EBITDA margin was 18.5%.

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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.