DSM Firmenich (DSFIR) H1 2025 earnings summary

Executive summary

• Achieved 7% organic sales growth and 29% increase in adjusted EBITDA in H1 2025, with strong momentum across core business units, successful delivery of integration synergies, and strategic portfolio tuning including divestments and ANH exit progress.

• Completed sale of Feed Enzymes business for €1.5 billion, divested marine lipids and yeast extracts, and advanced the exit process for Animal Nutrition & Health.

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

• Strategic focus on innovation, consumer well-being, and sustainability, with ongoing transformation and synergy programs.

Financial highlights

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

• Temporary vitamin price effects contributed €125 million to H1 EBITDA; FX headwinds impacted results by €25 million in Q2.

• Core adjusted EPS increased to €1.92 from €1.35 year-over-year; net profit rose to €541 million from €50 million in H1 2024.

• Adjusted gross operating free cash flow was €215 million, with sales-to-cash conversion at 3.3%.

• Net debt reduced to €2,459 million, supported by divestment proceeds and strong liquidity position.

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.

• Outlook reflects volatile FX rates and normalization of temporary vitamin price effects.