DSM Firmenich (DSFIR) H1 2024 earnings summary

Executive summary

• Strong improvement in H1 2024 financial results, driven by successful integration, operational excellence, and the vitamin transformation program, delivering €95 million in benefits.

• Portfolio fine-tuning underway, including announced divestments of yeast extracts and marine lipids, and advanced Animal Nutrition & Health (ANH) separation.

• Mid-term strategy focuses on high-growth, high-margin segments and sustainability ambitions.

• Upgraded full-year Adjusted EBITDA outlook to around €2 billion, reflecting positive momentum and synergy realization.

Financial highlights

• H1 2024 sales reached €6,298 million, up 2% year-over-year on a pro forma basis; organic sales growth ranged from -2% to 4%.

• Adjusted EBITDA for H1 2024 was €976 million, up 5% year-over-year, with margin at 15.5%.

• Q2 2024 Adjusted EBITDA was €513 million, up 26% year-over-year, with margin at 15.9%.

• Adjusted free operating cash flow reached €460 million, up 60% year-over-year.

• Core adjusted net profit for H1 2024 was €365 million, up 55% year-over-year; Core EPS €1.35.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance raised to around €2 billion, targeting €200 million synergy and vitamin program contribution.

• Positive momentum expected to continue into Q3, with Q4 typically seasonally weaker.

• Continued focus on cash performance, inventory control, and prudent CapEx, expected at €0.8 billion for FY 2024.

• Mid-term targets: 5-7% organic sales growth, 22-23% Adjusted EBITDA margin, >10% cash-to-sales conversion.