Perfumery and beauty freshen up dsm-firmenich’s Q1 results
02 May 2024 --- In Q1 results, dsm-firmenich’s Perfumery & Beauty segment delivered organic sales growth of 2%, with 4% higher volumes, offset by 2% lower price, reflecting lower input costs.
Fragrances hit high-single-digit organic sales growth, supported by demand in consumer fragrances, despite fine fragrances reporting against a “strong” comparable period.
Personal Care also recorded high-single-digit organic growth, driven by “good end-user demand.”
The strong organic growth was largely offset by Ingredients due to the focus on a value-over-volume strategy and the closure of its Pinova plant in Brunswick, Georgia, US, which was prompted by a fire at a terpene resins area. This closure led to a 2% negative effect on volumes.
CEO highlights positive market environment
Adjusted EBITDA was up 11%, driven by higher sales, a favorable mix and the contribution of the improvement programs, leading to a step up in margin to 23.7%.
“We are pleased to see a more positive market environment and the return of volume growth in our business, together with a further sequential step up in margin,” comments Dimitri de Vreeze, CEO at dsm-firmenich.
“This is most evident for Perfumery & Beauty and Taste, Texture & Health, while we also expect a better momentum developing for Health, Nutrition & Care. Animal Nutrition & Health saw early signs of improving demand and vitamin prices,” he notes.
“Overall, we remain cautious as to the robustness of the market recovery trends and maintain our current full-year guidance.”
De Vreeze highlights the company is “making good progress” in its synergies and improvement actions, including its vitamin transformation program, which has sought to cut costs by trimming facility assets.
“We look forward to our Capital Markets Day in Paris on June 3, which will be focused on our innovation-driven growth strategy,” adds De Vreeze.
Recently, at In-cosmetics Global in Paris, France, dsm-firmenich presented its range of innovations, “sparking senses” with multifunctional sun, skin and hair care solutions.
By Benjamin Ferrer
