Business outlook: dsm-firmenich’s growth driven by gut health, preventative nutrition, and animal health
Global nutrition and health company dsm-firmenich reports a robust financial performance for 2024, highlighting strong growth in its Human Nutrition & Care (HNC) and its Animal Health & Nutrition (ANH) segments, the latter of which it plans to fully divest from this year. The company says it is focused on innovation and strategic restructuring.
The supplier says the results reinforce its position in sustainable health solutions while paving the way for a “significant transformation” of its portfolio.
“These achievements, together with the ongoing good momentum in our end markets, lead us to a positive full year outlook for 2025, which includes around €200 million (~US$2.07 million) adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from further cost and revenue synergies, and the vitamin transformation program,” reveals dsm-firmenich CEO, Dimitri de Vreeze.
“With the confidence we have in our earnings growth potential and the strong balance sheet, we have decided to initiate a €1 billion (~US$1.04 billion) share buyback program.”
“Moving forward, we will continue to execute our strategic plan, including exiting ANH and fully focusing on growing our innovation-driven core activities. Hence, we are fully on-track to meet our mid-term ambitions.”
HNC standouts
According to dsm-firmenich, its HNC division continues to play a central role in its future strategy, despite a slight year-over-year decline in sales. However, the business saw an upturn in demand during the latter half of the year, particularly in Dietary Supplements and Early Life Nutrition.
The company notes that key innovations within HNC included advancements in gut health and preventative nutrition. Additionally, the launch of Humiome Post LB — a postbiotic designed to improve gut well-being — represents a major step in microbiome-targeted health solutions.
Moreover, the company highlights its release of Humiome B2, the first vitamin to function as a biotic, delivering 90% of vitamin B2 directly to the gut microbiome, potentially benefiting immunity, mental well-being, and aging.
Other ingredient advances include specialized formulations containing algal lipids, biotics, and cellular-level nutritional ingredients.
These include ResVida (a high-purity resveratrol), All Q (CoQ10 ubiquinone), and Redivivo (a bioactive lycopene) were developed to help regulate inflammation and maintain cellular energy levels.
Meanwhile, dsm-firmenich secured regulatory approvals for its human milk oligosaccharides in over 170 countries, advancing infant nutrition offerings through strategic partnerships.
Despite a 5% decline in Adjusted EBITDA compared to the previous year, the company remains confident in the segment’s potential, particularly with demand rebounding in key product lines. Adjusted EBITDA margins improved in Q4, reaching 18.1%, demonstrating a positive trajectory for 2025.
Boosting sustainability and exiting ANH
The company highlights that its shift toward sustainable and plant-based alternatives also boosted the year’s financial results. This is underscored by the expansion of its life’sOMEGA algal lipid range, including life’sOMEGA O3020 — the first algal-based lipid with high eicosapentaenoic acid content.
ANH also emerged as a standout performer in 2024, with a remarkable 168% increase in Adjusted EBITDA compared to the previous year. Organic sales growth stood at 5%, driven by a 3% increase in volumes and improved pricing. The business benefited from strong demand in Performance Solutions and a normalization of vitamin profitability in the latter half of the year.
The company’s Performance Solutions segment saw heightened demand for mycotoxin risk management products, which are now complemented by precision service offerings through dsm-firmenich’s extensive premix network.
The Precision Nutrition segment expanded with launches including Verax DBS, a diagnostic tool that detects vitamin D deficiencies in poultry and swine, and the roll-out of HiPhorius and ProAct360, feed enzymes that optimize animal protein production while reducing environmental impact.
Notably, Bovaer, a methane-reducing feed additive, and Veramaris, a sustainable omega-3 source for aquaculture delivered strong results, reinforcing the company’s commitment to sustainable animal nutrition.
ANH strengthened its overall performance in the fourth quarter, with 12% sales growth and an 18.9% Adjusted EBITDA margin, largely supported by a temporary spike in vitamin prices due to supply disruptions.
Looking ahead, dsm-firmenich plans to separate its ANH division, believing that a different ownership structure will better unlock its long-term potential. The company has already initiated this process by selling its stake in the Feed Enzymes Alliance to Novonesis for €1.5 billion (~US$1.56 billion), marking a significant step in the planned exit strategy.
“We redefined our strategic course with the announcement of the separation of ANH and the tuning of our portfolio which is well-progressed with the sale of marine lipids, yeast extracts, our minority stake in Robertet, and our stake in the Feed Enzymes Alliance with Novonesis,” says de Vreeze. “We were also successful in substantially improving our cash flow ahead of our mid-term target.”
