Kaiseraugst (CH) | Heerlen (NL). (dsf) DSM-Firmenich AG reported its financial results for the third quarter 2023. Q3-2023 financial and operational highlights:
- Perfumery + Beauty performed well and Taste, Texture + Health was resilient
- Health, Nutrition + Care, and Animal Nutrition + Health were weak, driven by record low vitamin prices
- Cash flow prioritized, resulting in an improved cash conversion ratio of 56 percent
- Vitamin transformation and EUR 200 million cost reduction program well under way
- Merger integration process progressing well, with synergy delivery in line with plan
- FY 2023 outlook: Adjusted Ebitda of around EUR 1,800 million
Chief Executives Statement
Chief Executive Dimitri de Vreeze says in his summary: «In the current global economic environment we are working hard to mitigate the effects through strong internal actions. To this end, we are driving a broad range of self-help measures, with the largest contributor being the vitamin transformation program. In addition, we have pushed harder on cash flow, a key priority for us, and see good improvements this quarter. At the same time, we remain relentlessly focused on the successful integration of the merger and the delivery of our targeted synergies.
«During the quarter we were pleased with the continued good performance of our Perfumery + Beauty and the resilience of our Taste, Texture + Health businesses. However, destocking continued, and vitamin prices remained under pressure, impacting particularly Animal Nutrition + Health and Health, Nutrition + Care businesses. For the remainder of the year, we do not expect a material change in these business conditions, although the last quarter will begin to reflect the contribution from our internal costs actions.
«The decisive actions we are taking at this time provide a strong base from which we will be able to deliver attractive innovation-driven growth. With our market-leading and highly complementary portfolio of ingredients, science and technologies, we are confident in achieving our mid-term financial targets. We are reviewing all segments to prioritize and accelerate the company’s high growth and higher margin business. We will provide an update on progress of all our strategic actions at our Capital Markets Day next year.»
The company estimates for FY 2023, on a pro forma basis, an Adjusted Ebitda of around EUR 1,800 million, which includes an estimated negative vitamin effect of about EUR 500 million as well as a negative foreign exchange effect of about EUR 90 million. For additional info please read the PDF file below (157 KB):20231128-DSM-FIRMENICH-Q3-2023.