In its H1 2024 performance report, dsm-firmenich raised its forecast, predicting an Adjusted EBITDA of approximately €2 billion (US$2.16 billion) for FY 2024. The company aims to boost its “innovation-led” growth by concentrating on the high-growth and high-margin sectors of Perfumery & Beauty. Perfumery & Beauty drives strong performance in dsm-firmenich’s H1 results, as the company prioritizes these segments.
“Our unwavering commitment to operational excellence, coupled with favorable business conditions, has led to improved financial results. Both Perfumery & Beauty and Taste, Texture & Health demonstrated robust performance, while Health, Nutrition & Care and Animal Nutrition & Health gained momentum,” stated CEO Dimitri de Vreeze.
With this positive momentum, the company has upgraded its full-year outlook to around €2 billion (US$2.16 billion), highlighting a projected €200 million (US$216.3 million) contribution from synergy delivery and the vitamin transformation program. However, de Vreeze cautioned about the general economic conditions affecting their customers.
Category Focus
Perfumery & Beauty drives strong performance in dsm-firmenich’s H1 results, achieving strong financial outcomes in the first half of the year, supported by a newly redesigned organizational structure better aligned to meet customer needs. The segment achieved organic sales growth of 7%, with volumes increasing by 10%, despite a 2% negative impact from the closure of the Pinova plant.
While lower pricing (-3%) was observed due to product mix effects and some pass-through of decreased input costs, the strong demand for Perfumery and Beauty & Care resulted in “excellent performance” during the first six months of the year. The demand for ingredients also gradually improved over the period.
Throughout H1, Perfumery & Beauty introduced several new innovations across its three segments. The Perfumery segment launched PopScent Clear for laundry care, which combines advanced malodor-neutralizing technologies with encapsulation. Additionally, it introduced two new Haloscent patented profragrance molecules, designed to enhance fragrance effects specifically for fine fragrances and hair care products.
In the Beauty & Care segment, momentum continued with the launch of Eterwell Youth, a holistic solution for healthy aging skin that works at the cellular level and is effective on all skin types by clearing senescent (“zombie”) cells.
The Ingredients segment unveiled the Sharing Innovation 2024 collection, which includes Clearwood Prisma, a new captive ingredient produced through biotechnology that is 100% natural, renewable, and biodegradable.
Adjusted EBITDA rose by 20%, attributed to increased demand, synergy contributions, and lower input costs. The Adjusted EBITDA margin improved by 240 basis points to 22.6%, reflecting the segment’s strong performance. Perfumery & Beauty drives strong performance in dsm-firmenich‘s H1 results, positioning the company for continued growth.
