The specialist in DSM-Firmenich aromas, perfumes and ingredients experienced half-yearly results, its animal nutrition sectors, from which he intends to separate, and human having benefited from a favorable environment despite the macroeconomic vagaries.
From January to June, the company’s revenues display an increase of 3% to 6.51 billion euros (6.05 billion francs), according to a statement published Thursday. Organic growth reaches 7%.
The gross operating result (EBITDA) adjusted has jumped from 29% to 1.26 billion, after 976 million at the same period a year earlier and the related margin increased to 19.4%, against 15.5% before. The net profit has swelled half at 537 million euros.
“Our three business sectors have experienced favorable winds. The population is increasingly concerned about their health and aging well, which benefited our activities in the fields of health, nutrition and care. (…) Finally, in the field of beauty, perfumery has experienced very good results because consumers want to enjoy life,” said the DSM-Firmen Vreeze.
Sales of health, nutrition and care activity, however, fell by 2%, those of the perfumery & beauty division fell 2%, while those in the taste, texture and health sector won 3%.
Hesitant American market
The company intends to separate from its animal and health nutrition unit, whose sales have nevertheless increased the highest increase of 14% in annual shift, a “advanced” process, rejoiced Mr. de Vreze. Last June, DSM-Firmenich finalized the sale of his participation in Feed Enzymes Alliance in his partner in equal units, active in the biosolutions.
Its restructuring strategy started two years ago, is “satisfactory”, according to the CEO which said that the group was in the “acceleration” phase of its implementation without wanting to give a deadline. “We will now develop our portfolio, focused on nutrition, health and beauty,” he said, adding that no acquisition was therefore planned in the coming years to consolidate “the house”.
Another component of the strategy adopted, the company has embarked on a vitamin sector restructuring program in order to reduce costs and restore profitability. This objective must be completed in 2025 “with a contribution of around 100 million euros to the adjusted Ebitda”, according to the boss of the Argovien group who details that vitamins must become a “limited category, representing 7-8% of sales against 17% today”.
For the whole year, management forecasts remain unchanged with an annual adjusted Ebitda of around 2.4 billion euros, “reflecting the volatile effects of exchange rates”. Mr. De Vreeze recognizes that on the American market, the one who is more hesitant at the moment, the threat of customs duties created of “instability”. “The agility is absolutely essential (…) I think that in the end we will be able to pass this on prices but we must not forget that around half of our products is exempt from customs duties. So we have one step ahead in this regard”.
This article was published automatically. Sources: ATS / AWP