DSM-Firmenich AG: reports FY-2023 Fiancial Results

Kaiseraugst (CH) | Heerlen (NL). (dsf) DSM-Firmenich AG reported in February its financial results for the financial year 2023. Chief Executive Dimitri de Vreeze: «We are proud that the company is already operating seamlessly with integration well ahead of plan, including the development of a common culture, as demonstrated in our recent employee engagement survey. Our employees have done a truly amazing job building momentum, positioning DSM-Firmenich as a world leader in nutrition, health and beauty.

«In light of the unprecedented conditions with very low vitamin prices and a continued destocking cycle, we took a number of immediate and effective actions. We accelerated our plans for driving through additional self-help measures and advanced the review of all our business segments. This led us to the initiation of a process to separate out the Animal Nutrition + Health business from the Group. This should strongly reduce our exposure to vitamins earnings volatility and reduce our capital intensity in line with our long-term strategy. We believe that the full potential of the ANH business could be best realized through a different ownership structure. Supported by our exciting innovation pipeline, all these actions would help us to prioritize and accelerate the company’s nutrition, health and beauty high-growth and higher-margin businesses, all of which is reflected in our mid-term financial targets.»

Outlook 2024

As the global political and economic environment remains uncertain, and given that it is early in the year, we feel it prudent to base our full year outlook for the entire company only on those elements which are under our control, namely a EUR 200 million step-up in Adjusted Ebitda from a combination of synergy delivery and the vitamin transformation program. Considering that the full negative vitamin effect emerged only in Q2 2023, the effective Adjusted Ebitda run-rate in the period Q2-Q4 2023 on an annualized basis was about EUR 1.7 billion, the company estimates for FY-2024 Adjusted Ebitda of at least EUR 1.9 billion. For additional information please read the Company’s PDF file below (969 KB | 35 pages):