“On track”: dsm-firmenich reports strong half-year results amid vitamin and restructuring programs
30 Jul 2024 --- Health and nutrition company dsm-firmenich has reported a 7% increase in sales compared to the same period last year in its first half-year results for 2024. Sales hit €3.2 billion (US$3.4 billion) for the second quarter of 2024, compared to €3 billion in the second quarter of last year, says the company.
Its adjusted operating result (EBITDA) has also increased by more than a quarter to €513 (US$555) million during the same period.
As a result, the group has upgraded its full-year outlook to around €2 billion (US$2.1 billion) based on what it describes as “positive business momentum.” It says business restructuring and its vitamin transformation program is also on track, with €95 million (US$102 million) delivered in the first six months.
Continuing into the third quarter, it plans to deliver a €200 million (US$216 million) adjusted EBITDA contribution from streamlining its operations and the vitamin transformation program.
Dimitri de Vreeze, CEO, says: “We are pleased with our achievements in the first six months of the year. We launched our strategic plan at our capital markets day in June and are making good progress with the synergies and vitamin transformation programs. The separation of the Animal Nutrition & Health business is well underway, and we already announced two divestments as part of our portfolio fine-tuning.”
“At the same time, our relentless focus on operational excellence, combined with improving business conditions, resulted in better financial results. Perfumery & Beauty and Taste, Texture & Health both delivered a strong performance. Health, Nutrition & Care and Animal Nutrition & Health saw improved momentum.”
He adds that despite promising results, the business must remain “cautious” about economic conditions and customer behavior.
In mid-2023, the company restructured its vitamin activities to reduce costs.
Vitamin transformation program
In mid-2023, the company restructured its vitamin activities to reduce costs. The expected US$216 million savings will be in addition to the previously announced €350 million (US$379 million) “synergies target.”
According to the company, neither of these targets will be disrupted by the separation of its Animal Nutrition & Health business. It has closed the Vitamin B6 and Vitamin C plants in China as part of its vitamin transformation plans.
In the first six months of 2024, the program contributed about €45 million (US$48.7 million) to Adjusted EBITDA. For 2024, dsm-firmenich expects to achieve a contribution of around €100 million (US$108 million).
Separation of Animal Nutrition & Health
In February 2024, dsm-firmenich announced plans to separate the Animal Nutrition & Health business from the company, citing a different ownership structure as the best way to maximize its potential. The company expects to make a transaction announcement in 2025.
Earlier this year, the group also revealed that it had launched a shrimp module for Sustell, its environmental platform. This module allows shrimp farmers to map and reduce their full environmental footprint and meet environmental sustainability targets.
