First Financial Report of DSM-Firmenich after the merger Shows a 5% Decline in Sales

Chaileedo Press
Aug 2, 2023
2 min read

The company predicts that its pro forma basis Adjusted EBITDA for FY 2023 will be between €1.8-1.9 billion, which is lower than the €2.275 billion recorded in FY 2022.

Today(August 2), The financial report for DSM-Firmenich for H1 and Q2 2023 was released. It achieved sales of 6.152 billion euros, down 5% year on year. Its sales for Q2 2023 were 3.03 billion euros.

The group highlights several key achievements. Firstly, the successful completion of the merger between DSM and Firmenich on May 8, 2023, which is a significant milestone for both companies. The integration is progressing in-line with the plan and is already delivering the initial benefits of synergies.

Despite a volatile macro-economic environment, the Perfumery & Beauty and Taste, Texture & Health segments delivered good performances. However, the weak vitamin market conditions primarily affected the Animal Nutrition & Health segment, and to a lesser extent, the Health, Nutrition & Care segment. As a result, plans to structurally improve the performance of these segments have been accelerated.

DSM-Firmenich announced that due to the current weak macro-economic outlook, there is unlikely to be a significant improvement in business conditions in the second half of 2023. Therefore, the company predicts that its pro forma basis Adjusted EBITDA for FY 2023 will be between €1.8-1.9 billion, which is lower than the €2.275 billion recorded in FY 2022. The company expects a negative vitamin effect on the full-year Adjusted EBITDA of around €400 million, as well as a negative foreign exchange effect for DSM-Firmenich of about €100 million.

Geraldine Matchett and Dimitri de Vreeze, Co-CEOs, commented: “We are well advanced in the integration phase of the merger and excited by the positive response of customers to our enhanced business proposition, giving us even greater confidence in the delivery of our synergy targets. The performance of our Perfumery & Beauty and Taste, Texture & Health units in the first six months demonstrates the quality of these businesses and the synergy potential of the merger.