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DSM-Firmenich AG
AEX:DSFIR

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DSM-Firmenich AG
AEX:DSFIR
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Price: 68.68 EUR 1.3% Market Closed
Market Cap: 18.2B EUR

DSM-Firmenich AG
Investor Relations

DSM-Firmenich AG is the culmination of a merger between two titans in their respective fields: DSM, a Dutch multinational known for its prowess in health, nutrition, and sustainable living, and Firmenich, a Swiss firm renowned for its legacy in fragrances and flavors. This strategic union blends DSM's strengths in innovative biotechnology and sustainability with Firmenich's expertise in creating unique sensory experiences. As a combined entity, DSM-Firmenich AG operates on the cutting edge of scientific innovation, catering to a diverse array of industries including food and beverages, personal care, and health products. The synergy of DSM's leadership in sustainable solutions with Firmenich's artistry in scent and flavor not only results in high-quality consumer products but also pushes the envelope in terms of environmental responsibility and human health.

The company's business model thrives on innovation and a deep understanding of consumer needs. It leverages its extensive research and development capabilities to produce solutions that enhance the taste, texture, and nutritional value of food, alongside creating signature scents for personal and home care products. By consistently investing in technology and sustainable practices, DSM-Firmenich generates revenue through a broad portfolio of offerings that cater to global clients ranging from multinational corporations to niche brands. Their growth is anchored in delivering products that resonate with consumers' increasing demands for sustainability and authenticity, ensuring that every product not only meets the highest standards of quality but also aligns with the values of a rapidly changing world.

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Last Earnings Call
Fiscal Period
Q2 2023
Call Date
Aug 2, 2023
AI Summary
Q2 2023

Performance Overview: Perfumery & Beauty and Taste, Texture & Health performed well despite a volatile macro environment, while Animal Nutrition & Health faced significant challenges.

Synergies: Management expressed increased confidence in achieving €350 million in merger synergies, particularly cost synergies, now that detailed integration work is underway.

Guidance: Year-end net debt is expected at €3.4–3.5 billion (excluding hybrid), around 2x pro forma EBITDA. Full-year EBITDA outlook remains €1.8 to €1.9 billion.

Vitamin Business Headwinds: Vitamin E prices declined further since last update, but additional downside is already factored into guidance.

Volumes & Destocking: Volumes in key divisions were weak, mainly due to destocking and specific site closures (e.g., Pinova). Some volume improvement is only expected in Q4 as destocking fades.

Cash Flow & Working Capital: Working capital and cash conversion were weak in H1, with focus on improvement back toward previous levels.

Leadership Transition: Geraldine Matchett is stepping down as CFO, with Ralf Schmeitz taking over from September 1.

Key Financials
Net Debt (Half Year)
€1.8 billion
Hybrid (Debt Component)
€750 million
Pro Forma Adjusted EBITDA (H1)
€929 million
Core Adjusted Net Profit (H1)
€236 million
EBITDA (Full Year Guidance)
€1.8–1.9 billion
Dividend
€430 million (timing: second half)
Working Capital to Sales Ratio (H1)
33%
Cash Conversion (H1 Pro Forma)
31%
CapEx (H1 Pro Forma)
€348 million
Depreciation & Amortization (H1)
€470 million
Restructuring & Deal-Related Costs (2023 guidance)
€350 million (approximate, this year)
Pinova Revenue Headwind (H2)
€50–60 million
Other Earnings Calls
2023
2020

Management

Mr. Dimitri de Vreeze
Chief Executive Officer
No Bio Available
Mr. Ralf Schmeitz
Chief Financial Officer
No Bio Available
Mr. Dave Huizing
Vice President of Investor Relations
No Bio Available
Ms. Jane Sinclair
Chief Legal, Risk & Compliance Officer
No Bio Available
Ms. Lieke de Jong-Tops
Senior Communications Manager
No Bio Available
Ms. Mieke Van de Capelle
Chief Human Resources Officer
No Bio Available
Mr. Luca Rosetto
Senior Vice President of Operations - Nutritional Products
No Bio Available
Mr. Philip Eykerman
President of Health Nutrition & Care
No Bio Available
Mr. Patrick Niels
President of Taste, Texture & Health
No Bio Available
Ms. Patricia Malarkey
Chief Innovation Officer
No Bio Available

Contacts

Address
AARGAU
Wurmisweg 576, Kaiseraugst
Contacts