“Strong performance” in dsm-firmenich H1 results driven by Perfumery & Beauty

01 Aug 2024 --- In its H1 2024 performance results, dsm-firmenich increases its outlook and forecasts an Adjusted EBITDA of around €2 billion (US$2.16 billion) in FY 2024. The ingredients giant plans to accelerate its “innovation-led” growth by prioritizing the high-growth and high-margin segments of Perfumery & Beauty.

“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,” comments CEO Dimitri de Vreeze.

“We upgrade our full- year outlook to around €2 billion [US$2.16 billion] based on the positive business momentum continuing into the third quarter and our commitment to deliver a €200 million [US$216.3 million] Adjusted EBITDA contribution from a combination of synergy delivery and the vitamin transformation program, while we should remain cautious about the general economic conditions in which our customers operate.”

Category focus
Perfumery & Beauty delivered strong financial results in the first half, with strong demand across its three segments and supported by a newly redesigned organization, better aligned to serve customers. The business delivered organic sales growth of 7%, with 10% higher volumes (including a 2% negative effect from the Pinova plant closure). 

Lower pricing (-3%) resulted from product mix effects and some pass-through of lower input costs. Strong demand for Perfumery and Beauty & Care resulted in “excellent performance” in the first six months of the year. 

Strong demand for Perfumery and Beauty & Care resulted in “excellent performance” in the first six months of the year.Ingredients saw a gradual improvement in their results through the period with demand recovery.

In the first half, Perfumery & Beauty launched several new innovations across its three segments.

Perfumery launched PopScent Clear for laundry care, combining the most advanced malodor-neutralizing technologies with encapsulation. It also added two new Haloscent patented profragrance molecules, giving an amplified fragrance effect, specifically designed for fine fragrance and hair care products. 

Beauty & Care experienced momentum in innovation with the launch of Eterwell Youth, a holistic solution for healthy aging skin, which acts on the cellular level and is efficient on any skin type, clearing senescent (“zombie”) cells.

Ingredients launched the Sharing Innovation 2024 collection, featuring Clearwood Prisma, a new captive ingredient made through biotechnology that is 100% natural, 100% renewable and biodegradable. 

Adjusted EBITDA was up 20%, driven by higher demand, contribution of synergies and lower input costs. The Adjusted EBITDA margin was up 240 bps to 22.6%.