dsm-firmenich reports H1 2025 results

Kaiseraugst (Switzerland), Maastricht (Netherlands), July 31, 2025

Key figures

Dimitri de Vreeze, CEO, commented: “We are pleased to report a good performance in the first six months, with good organic sales and earnings growth and the effective execution of our strategic plan. Through our combined capabilities, we continue to make good progress in delivering comprehensive cost and revenue synergies across our businesses, demonstrating the success of our merger.

With our broad exposure to key market trends in nutrition, health and beauty, we deliver innovative solutions that provide critical performance to essential everyday consumer products. Our unique portfolio and global operational footprint position us well to operate in the current uncertain macroenvironment.

Our focus on innovation-led growth, and the €200 million contribution from our self-help programs support our full-year 2025 outlook of around €2.4 billion in Adjusted EBITDA.”

2025 Plan

• Acceleration of innovation and creation-led organic sales growth
• Achieving adjusted gross operating cash-to-sales ratio target of over 10%
• Delivery of further cost and sales synergies of 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 completing 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 around €2.4 billion, reflecting volatile foreign exchange rate effects.

As previously communicated, this outlook includes an estimated €150 million contribution from the temporary vitamin price effect (of which around €125 million was recorded in the first six months) due to a disruption in the vitamin market and a pro-rata deconsolidation effect of about €40 million of Adjusted EBITDA owing to the divestment of the Feed Enzymes business. 

Share buyback program

On April 1, 2025, dsm-firmenich initiated a program for the repurchase of ordinary shares with an aggregate market value of €1 billion to reduce its issued capital. Progress has been accelerated, with completion now targeted for January 30, 2026, at the latest. On July 30, around 40% of the program had been executed.

Strategy

As a consumer-focused global leader in nutrition, health, and beauty, dsm-firmenich is strategically focused on high-growth, high-margin segments, accelerating organic growth through cutting-edge science, breakthrough innovation, and the industry’s most comprehensive portfolio.

With world-class talent, a strong foundation in sustainability, and a relentless commitment to excellence, the company continues to invest in and expand its unique capabilities across scent, taste, and health. This positions dsm-firmenich to fully capture the momentum of favorable macro-trends and unlock significant value in emerging, high-potential areas of holistic well-being.

By combining science-based innovation with a purpose-led approach and a differentiated ingredients portfolio, dsm-firmenich is uniquely equipped to shape new markets and redefine consumer experiences.

This strategic focus underpins the company’s confidence in delivering on its mid-term financial targets:

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.

In 2025, the company expects to realize a total contribution of around €100 million to Adjusted EBITDA, of which €45 million has been realized in the first half. Since the merger started, the company has realized a €165 million contribution to Adjusted EBITDA from synergies.

Vitamin transformation program

In 2024 and 2025 the company has been executing a program to reduce costs and restore profitability in its vitamin activities, which is expected to generate an estimated total contribution to Adjusted EBITDA of around €200 million. These savings are incremental to the €350 million Adjusted EBITDA synergies target.

In 2025, the company expects to realize a contribution of around €100 million to Adjusted EBITDA, of which €50 million has been realized in the first half. Since the start of the program in 2024, the vitamin transformation program has contributed around €150 million to Adjusted EBITDA.

Separation of Animal Nutrition & Health from the Group

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

On June 2, 2025, dsm-firmenich completed the sale of its stake in the Feed Enzymes Alliance to Novonesis for €1.5 billion.

The exit process from the remaining Animal Nutrition & Health business is advancing and is entering its final stages.

Key figures and indicators

¹Restated for comparative purposes

Key figures and indicators on an IFRS basis

¹Per IFRS definition, net debt excludes the €750 million ‘Hybrid Note’

dsm-firmenich H1 2025 and Q2

H1 2025

• Perfumery & Beauty: good growth in Perfumery, offset by weak performance in Beauty due to sun filters
• Taste, Texture & Health: very good performance in both Taste and Ingredients Solutions, supported by sales synergies
• Health, Nutrition & Care: ongoing recovery led by Dietary Supplements and Early Life Nutrition
• Animal Nutrition & Health: strong underlying performance improvement, supported by temporary vitamin price effects

The company delivered a good 7% organic sales growth in the first half, with overall favorable business conditions throughout both the first and the second quarter, despite ongoing macroeconomic uncertainties.

Adjusted EBITDA increased 29%, owing to good organic growth and a contribution of around €95 million from synergies and the vitamin transformation program, partly offset by a €25 million negative foreign exchange rate effect and an about €30 million effect from the deconsolidation of divested businesses. The first half saw an about €125 million contribution from the temporary vitamin price effect.

Adjusted gross operating free cash flow development in the first half was impacted by timing of payments between periods and higher short-term employee rewards. With a typically stronger cash flow performance in the second half of the year, the company expects to deliver on its full-year adjusted gross operating cash-to-sales ratio target of over 10%.

Core earnings per share rose by 42% in H1 2025, reflecting the company’s strong improvement in profitability, despite an impact of an about 30cts per share mainly from a one-off loss at an associate, following last year’s M&A transaction with KD Pharma.

Q2 2025

• Perfumery & Beauty: solid performance against 17% volume growth in Q2 2024, with good performance in Perfumery, offset by continued weakness in Beauty & Care, owing to sun filters
• Taste, Texture & Health: very good performance, with a good contribution from sales synergies, against 12% volume growth in Q2 2024
• Health, Nutrition & Care: steady performance improvement led by Dietary Supplements and Early Life Nutrition
• Animal Nutrition & Health: continued underlying performance improvement, supported by temporary vitamin price effects

Overall, business conditions were in line with the first quarter, with P&B and TTH reporting organic sales growth against a very high comparable period.

Adjusted EBITDA increased 19%, owing to good organic growth and a contribution of around €50 million from synergies and the vitamin transformation program, partly offset by a €25 million negative foreign exchange rate effect, and an about €20 million effect from the deconsolidation of divested businesses. The quarter saw an about €40 million contribution from the temporary vitamin price effect.

The Adjusted EBITDA margin improved to 18.9%.

Notes to editors

A PDF version of this press release can be found here.

The presentation to investors is available here.

Financial calendar

October 30, 2025 – publication of dsm-firmenich Q3 2025 trading update

February 12, 2026 – publication of dsm-firmenich FY 2025 results

Additional information

Today dsm-firmenich will hold a webcast for investors and analysts at 9:00 am CEST. Details on how to access this call can be found on www.dsm-firmenich.com.

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 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.