DSM Firmenich (DSFIR) H1 2025 earnings summary

Executive summary

• Achieved 7% organic sales growth and 29% increase in adjusted EBITDA in H1 2025, driven by strong performance across business units, successful synergy realization, and strategic initiatives including portfolio tuning and vitamin transformation.

• Completed divestments in feed enzyme, marine lipids, and yeast extracts, advancing the exit process for Animal Nutrition & Health (ANH) and collecting up to €1.5 billion in proceeds.

• Launched €1 billion share buyback program, with 40% completed by July 30, 2025, and continued dividend payments.

• Focused on building a consumer-centric company around well-being, nutrition, health, and beauty, with innovation and sustainability as key drivers.

• Strategic progress on ANH exit, cost/revenue synergies, and portfolio optimization.

Financial highlights

• H1 2025 net sales: €6,510 million, up 3% year-over-year; adjusted EBITDA: €1,260 million, up 29%, with margin improving to 19.4%.

• Core adjusted net profit rose to €541 million, with EPS up to €1.92; net debt reduced to €2,459 million.

• Over €215 million in adjusted gross operating free cash flow, impacted by timing of payments and higher short-term employee rewards.

• Temporary vitamin price effects contributed €125 million to H1 adjusted EBITDA, with €95 million from synergies and vitamin program.

• CapEx maintained at ~6% of sales, totaling €401 million in H1 2025.

Outlook and guidance

• FY 2025 adjusted EBITDA expected around €2.4 billion, including €150 million from temporary vitamin price effects and €40 million deconsolidation from Feed Enzymes divestment.

• Targeting organic sales growth of 5–7%, adjusted EBITDA margin of 22–23%, and cash-to-sales conversion above 10%.

• Capex guidance at ~6% of sales; core tax rate around 22%; D&A ~€225 million/quarter.

• No material M&A planned for 2026; focus remains on organic growth and margin improvement.

• Mid-single-digit organic sales growth expected for H2 across all core business units.