Firmenich reports last stand-alone financials days before merging with DSM
02 May 2023 --- In its latest financial overview, Firmenich has reported continued momentum, with a revenue generation of CHF 1.23 billion (US$1.4 billion), an increase of 5.4% at constant currency, driven by a strong contribution of pricing, partially offset by foreign exchange headwinds.
This reflects an increase of 2.1% versus the same quarter of the prior year. “Firmenich has continued to experience solid end-market demand over the third quarter of FY 2023 and has continued to implement price actions across its segments to recoup the impact of raw material costs and other inflationary pressures,” the Swiss fragrance and taste supplier states.
Moreover, Firmenich generated revenue of CHF 3.67 billion (US$4.09 billion), an increase of 9.3% at constant currency over the last nine months.
Firmenich is slated to become part of DSM-Firmenich on the 8th of this month. “With the imminent completion of the merger, once DSM and Firmenich’s activities have been consolidated and the combined business plan approved by the DSM-Firmenich Board, it is intended that DSM-Firmenich will provide an outlook for the remainder of 2023 at the publication of its half year results on August 02, 2023,” DSM informs.
DSM reports sales decline
DSM disclosed a difficult first quarter where the company’s sales and margins have declined but expected to return to growth during the second half of the year, hoping to raise prices to boost profitability.
Its Health, Nutrition & Care segment delivered -2% sales, compared to an 11% growth in 2022. “Our first quarter results are reported against a comparable period that had not yet been impacted by the high rate of global inflation, the effects of which remained elevated into 2023,” Geraldine Matchett and Dimitri de Vreeze, co-CEOs comment.
DSM-Firmenich merger is slated to be completed on May 08.
“We do not foresee a significant improvement in these conditions in the second quarter. However, we anticipate a stronger second half of the year across all businesses as inflationary pressure eases, as volumes recover, especially in China, and vitamin prices start to normalize.”
The CEOs inform that the DSM-Firmenich stock has been trading on Euronext Amsterdam since April 18. With Firmenich’s contribution on May 08, the companies will have completed the merger, creating the leading global creation and innovation partner in nutrition, health and beauty.
“Looking to the future, we are very pleased at the overwhelmingly positive response to the exchange of DSM shares for DSM-Firmenich shares,” they remark.
Beauty business review
Recently, cosmetic and personal care industry players released their financial overviews, highlighting good growth amid cost and operating challenges. Emerging from challenging lockdowns, economic gains from reopening the Chinese market are apparent.
L’Oréal reported its first quarter 2023 sales were off at a “very strong start,” recording growth of 13% at EUR 10.38 billion (US$11.4 billion), mainly thanks to sales in its Dermatological Beauty and Consumer Products segments.
The Procter and Gamble Company (P&G) posted its third quarter fiscal year 2023 results, with net sales of US$20.1 billion, an increase of 4% versus the prior year. Organic sales, excluding the impacts of foreign exchange, acquisitions and divestitures, increased by 7%.
Inter Parfums announced that for the three months ended March 31, 2023, net sales rose to a record US$312 million, a 24% increase from US$251 million in the first quarter of 2022. The sales gains were primarily due to established lines.
Synthetic biotechnology company Amyris – a proponent of sustainable consumption through its Lab-to-Market technology platform and clean beauty consumer brands – expects to deliver Q1 2023 total revenue of approximately US$56 million.
Meanwhile, Symrise and Beiersdorf are off to a solid start for quarter one this year, with Nivea showing “outstanding” growth in all regions. Symrise has experienced a sales growth of 12.8% in the first quarter – a rise to €1.2 billion (US$1.32 billion) from last year. Meanwhile, Beiersdorf has experienced sales of €2.5 billion (US$2.76 billion).
Edited by Radhika Sikaria
