DSM Firmenich (DSFIR) Q4 2024 earnings summary

Executive summary

• Achieved 6% organic sales growth and 19% increase in Adjusted EBITDA for FY 2024, with a margin improvement of 210bps and over €1.5 billion in cash generation.

• Completed integration of merger and carve-out of Animal Nutrition & Health (ANH), with €2 billion in portfolio valorized through divestments, including a €1.5 billion sale of Feed Enzymes Alliance.

• Focused on high-growth, high-margin segments in Nutrition, Health & Beauty, with strong innovation and sustainability progress validated by SBTi.

• Delivered €200 million Adjusted EBITDA from synergies and vitamin transformation program.

• Announced €1 billion share buyback and maintained a €2.50 per share dividend, reflecting confidence in future earnings.

Financial highlights

• FY 2024 sales reached €12,799 million (+4% year-over-year); organic sales growth was 6%.

• Adjusted EBITDA increased 19% to €2,118 million, with margin rising to 16.5% (+210bps).

• Core EBIT up 43% to €1,213 million; Core EPS up 53% to €3.10.

• Adjusted gross operating free cash flow up 55% to €1,552 million; cash conversion at 12%.

• Net debt at €2,556 million, with working capital as % of sales improved to 27.7%.

Outlook and guidance

• 2025 Adjusted EBITDA expected at least €2.4 billion, including €100 million each from temporary vitamin price effect, synergies, and vitamin transformation program.

• Mid-single-digit organic growth expected across all core business units in 2025.

• Capex guidance at ~6% of sales; core income tax rate ~22%.

• No major M&A planned for 2025; focus on organic growth and integration.