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 and successful execution of strategic initiatives, including the completed sale of the Feed Enzymes business and progress on the Animal Nutrition & Health (ANH) exit.

• Temporary vitamin price effects contributed €125 million to H1 adjusted EBITDA, with synergies and transformation programs delivering €95–100 million each.

• Strategic focus on innovation, portfolio tuning, and sustainability, with a €1 billion share buyback program launched and 40% completed by July 30, 2025.

• Emphasis on building a consumer-human well-being company, targeting nutrition, health, and beauty trends.

Financial highlights

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

• Core adjusted net profit increased to €537 million and net profit (total group) to €541 million; core adjusted EPS rose to €1.92.

• Adjusted gross operating free cash flow was €215 million, with sales-to-cash conversion at 3.3%, impacted by timing of payments and higher short-term employee rewards.

• Net debt reduced to €2,459 million, supported by divestment proceeds and ongoing share buyback.

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.

• Underlying business conditions unchanged; FX headwinds could impact full-year results by over €75 million if trends persist.

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