DSM Firmenich (DSFIR) Q1 2025 earnings summary

Executive summary

• Achieved 8% organic sales growth and a 40% increase in adjusted EBITDA in Q1 2025, driven by core business performance, innovation, synergies, and a temporary vitamin price effect.

• Progressed on strategic initiatives, including the €1.5 billion sale of the Feed Enzymes business and ongoing exit from Animal Nutrition & Health.

• Launched a €1 billion share buyback program in April 2025, with €60 million spent and €500 million started.

• Secured a €750 million bond at attractive rates, strengthening the balance sheet.

• Animal Nutrition & Health exit process progressing as planned, with acquirer selection targeted for summer 2025.

Financial highlights

• Q1 2025 sales reached €3,274 million, up 7% year-over-year; adjusted EBITDA at €650 million, up 40%.

• Adjusted EBITDA margin improved to 19.9%, up from 15.1% in Q1 2024.

• Temporary vitamin price effect contributed €85 million to Q1 adjusted EBITDA; excluding this, adjusted EBITDA rose 22%.

• Organic growth split between volume (core businesses) and price (mainly A&H), with a 24% EBITDA increase from business growth and 18% from vitamins.

• M&A activity (divestments of yeast extracts and marine lipids) resulted in a -2% impact on growth and a €10 million quarterly EBITDA reduction.

Outlook and guidance

• Full-year 2025 adjusted EBITDA expected to be at least €2.4 billion, including €150 million from temporary vitamin price effects and a €40 million deconsolidation effect from Feed Enzymes divestment.

• Mid-single digit organic sales growth expected for core businesses in 2025, with some segments at the lower or higher end due to market dynamics.

• Capex expected at around 6% of sales; core income tax rate at 22%.

• Further €100 million in synergies and €100 million from vitamin transformation program targeted.

• Share buyback program of €1 billion to be completed by Q2 2026.