dsm-firmenich reports full year 2024 results

KAISERAUGST, Switzerland and MAASTRICHT, Netherlands, Feb. 13, 2025 /PRNewswire/ --

Management Report

2024 highlights

• Strategic plan executed: leading, innovation-focused consumer company in nutrition, health & beauty established
• Significant improvement of financial results, with strong organic sales growth and cash flow
• Strong Q4 with continued good business momentum across all businesses
• Ambitious climate targets set and externally validated by SBTi
• Stable dividend of €2.50 proposed
• €1 billion share buyback program to be launched
• Outlook 2025: Adjusted EBITDA of at least €2.4 billion

Key figures

in € millions	FY 2024	Pro forma FY 2023¹	% Change	Q4 2024	Q4 2023	% Change
Sales	12,799	12,310	4	3,257	3,112	5
Organic sales growth (%)	6			7
Adj. EBITDA	2,118	1,777	19	601	439	37
Adj. EBITDA margin (%)	16.5	14.4		18.5	14.1
Core adj. net profit	849	555	53

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

Key figures on an IFRS basis

in € millions	FY 2024	FY 2023²	% Change
Sales	12,799	10,627	20
Net profit from continuing operations	280	(636)	144
Net profit (total group)	280	2,153	(87)

² Represents the figures on an IFRS basis, including the Firmenich results as of the merger date May 8, 2023.

Dimitri de Vreeze, CEO, commented: "I am proud that we have delivered on our commitments in 2024 and have firmly established ourselves as a leading innovation-focused consumer company in nutrition, health & beauty. We redefined our strategic course with the announcement of the separation of Animal Nutrition & Health and the tuning of our portfolio which is well-progressed with the sale of marine lipids, yeast extracts, our minority stake in Robertet, and our stake in the Feed Enzymes Alliance with Novonesis.

At the same time, we delivered strongly improved financial results in all our businesses, benefitting from better business conditions, and supported by a €200 million Adjusted EBITDA contribution from the merger synergies and the vitamin transformation program. We were also successful in substantially improving our cash flow ahead of our mid-term target.

These achievements, together with the ongoing good momentum in our end markets, lead us to a positive full year outlook for 2025, which includes around €200 million Adjusted EBITDA from further cost and revenue synergies, and the vitamin transformation program. With the confidence we have in our earnings growth potential and the strong balance sheet, we have decided to initiate a €1 billion share buyback program. Moving forward, we will continue to execute our strategic plan, including exiting Animal Nutrition & Health and fully focusing on growing our innovation-driven core activities. Hence, we are fully on-track to meet our mid-term ambitions."

2025 Plan

• Acceleration of innovation and creation-led organic sales growth
• Delivery of further cost and sales synergies for about €100 million to Adjusted EBITDA
• Completion of the vitamin transformation program, with a contribution of about €100 million to Adjusted EBITDA
• Exiting Animal Nutrition & Health and finalizing the tuning of our portfolio as announced at the 2024 CMD
• Strengthening our sustainability leadership for People and Planet

Outlook 2025

For the group, we estimate a full year Adjusted EBITDA of at least €2.4 billion, which includes at least €100 million contribution from the temporary vitamin price effect from a supply disruption in the vitamin market.

Strategy

At its capital markets day in Paris on June 3, 2024, dsm-firmenich defined its strategy to better leverage its unique portfolio and capabilities to further strengthen its position as a global leader in nutrition, health, and beauty, and maximising the synergy potential of the merger.

The company is focusing on its consumer activities after having announced plans to separate the Animal Nutrition & Health business from the Group and after tuning the portfolio by deprioritizing certain activities, that contribute more than €600 million in annual sales. In 2024, the company sold two of these activities, representing about €300 million in annual sales, the yeast extract business to Lesaffre and the marine lipids activities to KD Pharma Group. In addition, the company sold its stake in Robertet for almost €400 million.

With these strategic actions, the company wants to accelerate its innovation-led growth by prioritizing the high-growth and high-margin segments of Perfumery & Beauty (P&B), Taste, Texture & Health (TTH) and Health, Nutrition & Care (HNC), with the following mid-term financial targets for dsm-firmenich in its new scope:

• Organic Sales Growth: 5-7%
• Adjusted EBITDA margin: 22-23%
• Cash-to-sales conversion: >10%

Delivering synergies through integration

dsm-firmenich is on track to achieve its target synergies contributing approximately €350 million to Adjusted EBITDA. Around half of this is expected to come from cost efficiencies. The other half of the synergies are expected from incremental revenues of €500 million driven by complementary capabilities and realized in all three business units of the Group's new scope: 60% in TTH, 25% in HNC and 15% in P&B. Since the merger, the company has realized over €120 million contribution to Adjusted EBITDA from synergies. In 2025, the company expects to realize a further contribution of around €100 million to Adjusted EBITDA.

Vitamin transformation program

Mid-2023, the company launched a program to reduce costs and restore profitability in its vitamin activities, expected to generate an estimated contribution to Adjusted EBITDA of around €200 million. These savings are incremental to the €350 million Adjusted EBITDA synergies target.

In 2024, the vitamin transformation program contributed around €100 million to Adjusted EBITDA. In 2025, the company expects to realize the remaining contribution of around €100 million to Adjusted EBITDA.

Separation of Animal Nutrition & Health from the Group

In February 2024, dsm-firmenich announced its intention to separate the Animal Nutrition & Health business from the company having concluded a different ownership structure would best realize its full potential. Furthermore, through this process, the company would reduce its exposure to vitamins earnings volatility and its capital intensity, in-line with its long-term strategy.

On February 11, 2025, dsm-firmenich announced the sale of its stake in the Feed Enzymes Alliance to its equal partner, Novonesis for €1.5 billion. With the scope of the separation of the Animal Nutrition & Health business now defined, next week dsm-firmenich will begin the process of seeking transaction options to exit Animal Nutrition & Health, which is expected in the course of 2025.

Stable dividend

At the Annual General Meeting on May 6, 2025, the Board of Directors of dsm-firmenich will propose a cash dividend of €2.50 per share for the financial year 2024. Of this total dividend, €1.44 to be paid out of capital contribution reserves without deduction of any Swiss withholding tax. The remaining €1.06 to be paid out of available earnings and therefore subject to 35% Swiss withholding tax.

New share buyback program

dsm-firmenich intends to repurchase ordinary shares with an aggregate market value of €1 billion and reduce its issued capital. This program is planned to start in Q2 2025 for an initial €500 million and will be increased to €1 billion upon the completion of the sale of dsm-firmenich's stake in the Feed Enzymes Alliance. This program is targeted to be completed by Q2 2026. The company remains committed to its strong investment grade credit ratings.

Key figures and indicators

in € millions	FY 2024	Pro forma FY 2023¹	% Change	Q4 2024	Q4 2023	% Change
Net sales	12,799	12,310	4	3,257	3,112	5
P&B	3,964	3,709	7	966	914	6
TTH	3,245	3,038	7	790	768	3
HNC	2,214	2,270	(2)	562	581	(3)
ANH	3,324	3,227	3	930	833	12
Corporate	52	66	(21)	9	16	(44)
Adj. EBITDA	2,118	1,777	19	601	439	37
P&B	882	783	13	202	192	5
TTH	615	556	11	144	133	8
HNC	371	389	(5)	102	94	9
ANH	343	128	168	176	32	450
Corporate	(93)	(79)	(18)	(23)	(12)	(92)
Adj. EBITDA margin (%)	16.5	14.4		18.5	14.1
P&B	22.3	21.1		20.9	21.0
TTH	19.0	18.3		18.2	17.3
HNC	16.8	17.1		18.1	16.2
ANH	10.3	4.0		18.9	3.8
Adj. EBIT	926	666	39
Core adj. EBIT	1,213	850	43
Core adj. net profit	849	555	53
Average number of shares (x millions)	264.6	265.1
Core adj. EPS	3.10	2.03
(Avg.) core capital employed	15,942	16,423
Core adj. ROCE (%)	7.6	5.2
Operating working capital	3,603	3,769²
Capital expenditures (cash)	764	734
Adj. gross operating free cash flow	1,552	999
Sales to cash conversion %	12.1	8.1

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

² Restated for comparative purposes.

Key figures and indicators on an IFRS basis

in € millions	FY 2024	FY 2023³	% Change
Net sales	12,799	10,627	20
EBITDA	1,991	810	146
EBITDA margin (%)	15.6	7.6
EBIT	561	(497)	213
Net profit (total group)	280	2,153
Net EPS (total group)	0.94	9.14
Effective tax rate (%)	34.4	2.8
Net debt	2,556	2,215
Workforce (headcount)	28,214	29,301

³ Represents the figures on an IFRS basis, including the Firmenich results as of the merger date May 8, 2023.

dsm-firmenich FY 2024 and Q4

in € millions	FY 2024	Pro forma FY 2023¹	% Change	Q4 2024	Q4 2023	% Change
Sales	12,799	12,310	4	3,257	3,112	5
Organic sales growth (%)	6			7
Adj. EBITDA	2,118	1,777	19	601	439	37
Adj. EBITDA margin (%)	16.5	14.4		18.5	14.1

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

FY 2024

• Very strong performance in Perfumery & Beauty and Taste, Texture & Health
• Solid performance on better business conditions in Health, Nutrition & Care through the second half of the year
• Significant step-up in financial results in Animal Nutrition & Health

Business conditions markedly improved during the year. Perfumery & Beauty and Taste, Texture & Health saw very strong demand throughout the year. Health, Nutrition & Care saw business momentum improving in the second half of the year with demand for Dietary Supplements and Early Life Nutrition picking up. Animal Nutrition & Health delivered a strong performance owing to continued strong demand for Performance Solutions throughout the year, together with the normalization of vitamin profitability during the second half of the year. In addition, in Q4 the business benefited from the additional temporary vitamin price effect related to a supply disruption in the vitamin market.

Adjusted EBITDA was up 19% owing to the good organic sales growth, and the contributions from the synergies, the vitamin transformation program and the temporary vitamin price effect in Q4. The Adjusted EBITDA includes a negative foreign exchange effect estimated at €50 million.

In 2024, synergies contributed around €105 million to Adjusted EBITDA, predominantly cost-led. The revenues from the sales synergies accounted for about €50 million in 2024. In 2025, the company expects an additional €100 million Adjusted EBITDA contribution from cost and sales synergies.

Adjusted gross operating free cash flow amounted to €1,552 million, up 55% from the prior period, driven by Adjusted EBITDA growth and operating working capital discipline.

Q4 2024

• Good performance in Perfumery & Beauty and Taste, Texture & Health
• Better performance in Health, Nutrition & Care on improved business conditions
• Strong performance in Animal Nutrition & Health on better underlying business conditions, further enhanced by the temporary vitamin price effect

Both Perfumery & Beauty and Taste, Texture & Health delivered a good result in Q4 which is seasonally a low quarter in the year. Health, Nutrition & Care had a good performance, with strong results in i-Health and Biomedical, and improving demand for Dietary Supplements and Early Life Nutrition. Animal Nutrition & Health saw continued strength in Performance Solutions and ongoing improvement in the overall business conditions with improving vitamin profitability. In addition, it benefited from a temporary vitamin price effect.

Adjusted EBITDA was up 37% owing to a very good organic sales growth, the year-on-year contribution of about €45 million from the vitamin transformation program and synergies and about €85 million from the temporary vitamin price effect in Animal Nutrition & Health, partially offset by a negative foreign exchange effect estimated at €10 million. The resulting Adjusted EBITDA margin was 18.5%.

Business Unit Review

Perfumery & Beauty

Perfumery & Beauty (P&B) is a leading creation and innovation partner for the most iconic global and local brands in consumer goods, lifestyle, and luxury beauty. The business unit is home to some of the best talent in the industry, boasts an unmatched palette of ingredients including captives, and is supported by a vertically integrated supply chain. Powered by our science-based innovations in Fragrance and Beauty & Care, we make our customers' products more desirable, essential, and sustainable, driving consumers' preference.

Business unit results

in € millions	FY 2024	Pro forma FY 2023¹	% Change	Q4 2024	Q4 2023	% Change
Sales	3,964	3,709	7	966	914	6
Organic sales growth (%)	7			5
Adj. EBITDA	882	783	13	202	192	5
Adj. EBITDA margin (%)	22.3	21.1		20.9	21.0

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

FY 2024

Perfumery & Beauty delivered a very strong performance with 9% volume growth, driven by both global and regional accounts. The 2% negative pricing reflected lower input costs. Perfumery had an excellent year with strong organic sales growth in both Fine Fragrances and Consumer Fragrances. These activities benefitted from the continued good demand for differentiated and exclusive fragrance creations and from innovation delivering product superiority. Ingredients' performance was very strong. Beauty & Care delivered a good first half which was followed by a softer half especially due to weak demand for suncare.

The strong results were supported by innovation in Perfumery, enabling the creation of superior consumer experiences and securing strong win rates, as well as new products launches in Ingredients and Beauty & Care.

• Perfumery leveraged its strong innovation portfolio, accelerating its adoption in customer briefs and expanding it with new launches. Perfumery demonstrated its innovation leadership with, among others:
  • HALOSCENT® Berry Boost, biodegradable pro-fragrances, enhancing the berry character of a fragrance in laundry care and hair care,
  • HALOSCENT® Pure You, the first pro-fragrance which provides a personalized scent signal uniquely tailored by the microbiome.
  • Upgraded versions of the recently launched POPSCENT® Eco technologies, industry pioneering bio-degradable capsules with continuously improved performance.
• Ingredients continued to expand its manufacturing footprint with a strong focus on Fragrance Specialties including several iconic products such as HABANOLIDE®, biodegradable musks as well as on pine-based, renewable Industrial Specialties. The business also continues to increase its naturals green extraction capabilities with a new Supercritical Fluid Extraction plant in India and to roll out its unique Ingredients collection on the market through its Sharing Innovation program.
• Beauty & Care continued to address the importance of suncare and launched Sunsense3, which adds daily indulgence to sun protection by adding fragrances in sun protection. ETERWELL YOUTH, powered by Senolytics Science, won five awards, including the Gold Award in Innovation for Best Active Ingredient at the in-Cosmetics Global Summit held in Paris.

Adjusted EBITDA was up 13% from the prior year, driven by strong innovation-driven volume growth, with the contribution synergies, resulting in a margin of 22.3%.

Q4 2024

Perfumery & Beauty delivered a good performance with 5% volume growth. Perfumery delivered a strong volume growth on strong demand for Fine Fragrances and good demand for Consumer Fragrances. Beauty & Care had a soft quarter especially owing to low demand for suncare. Ingredients had a strong quarter.

Adjusted EBITDA was up 5% from the prior year, primarily driven by good organic sales growth. The Adjusted EBITDA margin reflects the usual seasonality in the fourth quarter.

Taste, Texture & Health

Taste, Texture & Health (TTH) brings progress to life by tackling some of society's biggest challenges: providing nutritious, healthy and sustainable food and beverage solutions, accelerating the diet transformation with appealing taste and texture, and nourishing a growing global population whilst minimizing food loss and waste. TTH consists of Taste, which includes flavors, natural extracts, sugar reduction solutions, and Ingredients Solutions, which includes food enzymes, hydrocolloids, cultures, natural colorants, nutritional ingredients, and plant-based proteins.

Business unit results

in € millions	FY 2024	Pro forma FY 2023¹	% Change	Q4 2024	Q4 2023	% Change
Sales	3,245	3,038	7	790	768	3
Organic sales growth (%)	8			4
Adj. EBITDA	615	556	11	144	133	8
Adj. EBITDA margin (%)	19.0	18.3		18.2	17.3

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

FY 2024

Taste, Texture & Health delivered a very strong performance with 9% volume growth, with both Taste and Ingredients Solutions contributing equally. The strong demand was driven predominantly by regional and local accounts, which was also partly bolstered by a catch-up effect after destocking last year. Sales synergies saw a good momentum, through cross-selling, concept selling and capability sharing, resulting in a steadily growing pipeline in line with our mid-term ambitions.

Throughout the year, the business created new concepts which were successfully launched across multiple platforms driven by strong interest from customers. Examples included:

• In Plant-basedsolutions for dairy applications, the teams developed a solution for oat and soy drinks that combines a gellan gum texturizing agent to improve the mouthfeel and features a new flavor solution to achieve an authentic dairy taste.
• In Savory, the business created a plant-based tuna solution by bringing together deep expertise in biotechnology, proteins, texturizing agents, taste, and nutrition fortification. The product includes Vertis proteins, algae-derived life's®OMEGA, color solutions as well as taste solutions for an authentic tuna flavor.
• In Dairy, a renowned US dairy company launched new fruit-flavored low-sugar yogurts in different formats that combine TasteGEM® and TastePRINT® flavor solutions together with stevia sweeteners, cultures and enzymes.
• The business launched several initiatives to digitalize the recipe and product development process, from creation to application, accelerating time-to-market and increasing commercial success. Global application specialists can now easily collaborate across segments and across regions and further expand data- and AI-guided recipe creation and optimization.

The yeast extracts business was sold to Lesaffre in October 2024. Taste, Texture & Health will continue to supply yeast extracts to Lesaffre under a co-manufacturing agreement until the end of 2025.

Adjusted EBITDA was up 11%, driven by strong volume growth and the contribution from the synergies, resulting in an Adjusted EBITDA margin of 19%.

Q4 2024

Business momentum remained strong throughout the quarter. The reported 4% volume growth followed an exceptionally strong third quarter with 13% volume growth.

Adjusted EBITDA was up 8% on higher volumes, the contribution from the synergies and reflecting the deconsolidation of the yeast extracts business. The Adjusted EBITDA margin was 18.2%

Health, Nutrition & Care

Health, Nutrition & Care (HNC) enables people to improve their health by supplementing their diet with critical nutrients and driving medical innovation forward, so helping to optimize immunity, speed up recovery and enhancing quality of life.

Business unit results

in € millions	FY 2024	Pro forma FY 2023¹	% Change	Q4 2024	Q4 2023	% Change
Sales	2,214	2,270	(2)	562	581	(3)
Organic sales growth (%)	1			5
Adj. EBITDA	371	389	(5)	102	94	9
Adj. EBITDA margin (%)	16.8	17.1		18.1	16.2

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

FY 2024

Health, Nutrition & Care delivered 2% volume growth during the year. Medical Nutrition, i-Health, and Biomedical performed well throughout the period. Dietary Supplements and Early Life Nutrition improved during the second half of the year, driving 5% volume growth in the period for the business unit, owing to good demand for algal omega-3 oils and Early Life Nutrition premix and HMOs.

Health, Nutrition & Care launched several new specialized, preventative health solutions:

• Unlocking Health from the Gut: focusing on the restoration and support of the human gut ecosystem, the business launched Humiome® Post LB, a pioneering postbiotic, to improve gut wellbeing, and the first ever vitamin that acts as a biotic, Humiome® B2, with patented Microbiome Targeted Technology (MTT), delivering 90% of vitamin B2 directly to the gut microbiome in the colon. These innovations have the potential to elevate gut health, but also immunity, mental well-being, and healthy aging.
• Increasing Health Expectancy: focusing on reducing the 10-year gap between lifespan and health span, Health, Nutrition & Care took an innovative approach offering solutions made of algal lipids, biotics, and the best nutritional ingredients that act at cellular level. These include resVida® (99% pure resveratrol), a powerful senomorphic and antioxidant, ALL Q® (CoQ10 Ubiquinone), an essential coenzyme for maintaining cell energy levels, and the super antioxidant Redivivo® (Lycopene), a bioactive form of lycopene, which helps regulate the body's processes responsible for producing inflammatory substances.
• Supporting the Big Shift to Algal: within the life's®OMEGA algal lipids range, which offers clean, potent, unlimited, and sustainable lipids, the business developed life's®OMEGA O3020, the first algal-based lipid with high EPA content, available in Europe and the USA.
• HMOs: obtained regulatory approval in over 170 countries. With now 7 HMOs commercially available, of which 2 already approved in the Chinese market and several in the regulatory approval pipeline, the business moved to sign supply contracts with major global and domestic brands. Additionally, the business extended its infant nutrition offerings with a strategic partnership with Lallemand to allow customers access to unique combinations of HMOs and probiotics. Further developments in speciality proteins have also been shaped for infant nutrition.

The reported Adjusted EBITDA was down 5% from the previous year. Corrected for the negative foreign exchange effect and the divestment of the marine lipids activities (-10%), the underlying Adjusted EBITDA growth was up 5%.

Q4 2024

Health, Nutrition & Care had a good quarter with 5% volume growth. I-Health and Biomedical performed well, while the business saw further improvement in demand for Dietary Supplements, especially in algal lipid solutions, and Early Life Nutrition, with the latter benefitting from higher HMOs and premix sales.

Adjusted EBITDA was up 9% from the previous year period. Corrected for the negative foreign exchange effect and the divestment of the marine lipids activities (-15%), the underlying Adjusted EBITDA growth was up 24%. The Adjusted EBITDA margin was up to 18.1%.

Animal Nutrition & Health

Animal Nutrition & Health (ANH) helps delivering healthy animal proteins efficiently and sustainably, whilst harnessing the power of data to make animal farming practices more sustainable, productive, and transparent.

Business unit results

in € millions	FY 2024	Pro forma FY 2023¹	% Change	Q4 2024	Q4 2023	% Change
Sales	3,324	3,227	3	930	833	12
Organic sales growth (%)	5			16
Adj. EBITDA	343	128	168	176	32	450
Adj. EBITDA margin (%)	10.3	4.0		18.9	3.8

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

FY 2024

Animal Nutrition & Health delivered a strongly improved performance versus the previous year with 5% organic sales growth, with 3% volume growth and prices up 2%.

Performance Solutions delivered strong results throughout the year, especially in mycotoxin risk management products that are now offered together with precision service complementary offerings through the premix network. Bovaer® and Veramaris® had an excellent year. In the second half of the year, demand for Essential Products increased as farmer economics improved and vitamin profitability started to normalize, highlighting the quality of the underlying business. In addition, in Q4 the business benefited from the additional temporary vitamin price effect from vitamins A and E related to a supply disruption in the vitamin market.

In 2024, Animal Nutrition & Health launched several innovations and expanded its Performance Solutions and Precision Services reach across species and geographies:

• The feed enzymes HiPhorius and ProAct360 help increase efficiency and lower the carbon footprint of animal protein production and are available now across several geographies.
• Verax DBS is a newly developed commercially available precision service that helps farmers by exposing vitamin D deficiencies in farmed animals (poultry and swine).

Adjusted EBITDA was up significantly from the previous year, owing to good organic sales growth, the contributions from the vitamin transformation program and the temporary vitamin price effect in Q4.

Q4 2024

Animal Nutrition & Health delivered a strongly improved performance, led by prices up 15%, owing to a further normalization of the vitamin prices and the temporary vitamin price effect.

Adjusted EBITDA was up significantly from the previous year period, owing to good organic sales growth, the contribution from the vitamin transformation program, and a €85 million benefit from the temporary vitamin price effect. The Adjusted EBITDA margin increased to 18.9%.

Corporate activities

in € millions	FY 2024	Pro forma FY 2023¹	% Change	Q4 2024	Q4 2023	% Change
Sales	52	66	(21)	9	16	(44)
Adj. EBITDA	(93)	(79)	(18)	(23)	(12)	(92)

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

Cash Flow and Working Capital

Cash Flow and Working Capital

in € millions	FY 2024	Pro forma FY 2023¹
Adj. gross operating free cash flow	1,552	999
Sales to cash conversion %	12.1	8.1
Operating working capital (OWC)	3,603	3,769²
OWC as % of sales - end of period	27.7	30.3
Total working capital (WC)	2,734	3,198
Total WC as % of sales - end of period	21.0	25.7

¹ Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred as of the beginning of the year. The pro forma figures represent the results from continuing operations - please also refer to the section Definitions.

² Restated for comparative purposes.

The adjusted gross operating free cash flow was up €553 million versus prior year, representing a cash conversion of 12% on Sales.

OWC improved to 27.7% of Sales from 30.3% in prior year, reflecting discipline in managing operational efficiency and continued commitment to progress on our cash ambition.

Alternative Performance Measures (APMs)

The main APM adjustments in 2024 were:

• Acquisition (merger), divestment, and integration costs of €40 million, mainly related to the merger transaction, the divestment of the yeast extracts business, the sale of the Jiangshan vitamin C business, and the preparation for the Animal Nutrition & Health business carveout.
• Restructuring costs of €45 million, mainly related to the vitamin transformation program.
• Impairments of Property, Plant and Equipment (PPE), goodwill and intangible assets of €238 million, mainly related to the divestments of the marine lipids business (€76 million) and the yeast extracts business (€73 million) and other impairments following the portfolio tuning (€89 million).

A reconciliation between the APMs and the most directly reconcilable IFRS metric can be found on page 18 of this press release.

Sustainability

The world is in flux on many fronts with an accelerated pace, and in this context dsm-firmenich stays the course in its commitment to bring progress to life. Sustainability permeates everything dsm-firmenich does, driving progress for both People and Planet.

In 2024, the company made major strides in its sustainability journey. dsm-firmenich's mid-term and long-term targets for reducing greenhouse gas emissions were validated by the Science Based Targets initiative (SBTi), the leading authority on certifying corporate climate goals. By focusing on climate mitigation activities in its own operations and value chain, dsm-firmenich aims to reduce its greenhouse gas emissions to net-zero by 2045.

Looking ahead, dsm-firmenich remains dedicated to leveraging science and innovation to create solutions that meet the needs of people and the planet - because the world needs it now more than ever.

People

dsm-firmenich made progress on improving the health, well-being, and livelihoods of employees and people around the world.

	2024	2023
Safety Total recordable incident rate	0.24	0.31
Employee engagement	79 %	80% 1
Inclusion	67 %	-
Gender pay equity	-	-
Pay living wage to our employees	?	-

1. Result of EES survey in January 2024.

The safety and health of employees and the communities the company serves are top priorities for dsm-firmenich. In 2024, the company achieved a significant reduction in safety incidents, thanks to the increased ownership of safety by all employees. A first wave of Life Saving Rules and new Safety, Health and Environment (SHE) requirements was rolled out during the year.

In 2024, the company launched its human rights policy, published its first human rights report and conducted an analysis on human rights gaps in its own operations. An action plan to address the gaps is currently in process.

The results from Employee Engagement and Inclusion surveys remained strong, with 85% of employees stating they feel their work is meaningful to them, and an overall engagement score of 79%. dsm-firmenich continued to invest in upskilling employees with a newly launched learning platform as well as dedicated mentoring programs.

dsm-firmenich continues to promote nutrition for those most in need, reaching 620 million beneficiaries with high-quality nutritional intervention solutions. In 2024, dsm-firmenich renewed its partnership with the United Nations World Food Programme (WFP), reaching 38 million people with nutritious food products enhanced by the partnership, and a further 20.5 million people through WFP country programs, including fortified rice initiatives.

Planet

dsm-firmenich views climate and nature as deeply interconnected, requiring a comprehensive and integrated approach. The company is committed to developing solutions that address both climate change and the preservation and restoration of natural ecosystems simultaneously.

	Target	2024	2023
Greenhouse gas emissions
Scope 1 and 2	42% reduction by 2030	27 %	-
Scope 3	25% reduction by 2030	20 %	-
Purchased electricity from renewable resources	100% in 2025	95 %	88 %

In Climate, dsm-firmenich developed its first Climate Transition Action Plan (CTAP) in 2024 to create a clear roadmap towards its near-term and long-term net-zero targets.

In 2024 the company achieved significant results:

• 28% reduction in Scope 1 & 2 vs. the 2021 baseline
• 19% reduction in Scope 3 vs. the 2021 baseline
• 95% of electricity from renewable sources

The company is on track to achieve 100% of annual sourcing of purchased renewable electricity in 2025 and maintain that level through 2030.

To reduce Scope 3 emissions, the company is actively engaging with suppliers through its Responsible Sourcing Framework and the 'Joining Forces for NetZero' program to drive collaborative decarbonization efforts.

In Nature, dsm-firmenich focuses on water stewardship, biodiversity management, and resource efficiency.

The company also supports a wide range of biodiversity programs in the communities where it operates, including mangrove restoration in Indonesia, biodiversity projects in India, and marshland restoration in New Jersey.

Governance

As a combined, merged company, dsm-firmenich has made substantial strides in elevating its governance to the highest level.

In 2024, the company issued numerous policies and position papers that enhanced its good governance practices. These documents covered critical areas such as Protecting Forests and Land-based Natural Ecosystems, Safeguarding Biodiversity, and Combating Modern Slavery, among others.

dsm-firmenich launched a series of mandatory training programs designed to ensure company-wide adoption and adherence to the company's Code of Business Ethics, equipping all employees to uphold these standards.

Definitions

This press release includes information that is presented in accordance with IFRS as issued by the International Accounting Standard Board and alternative performance measures (APMs). Please refer to the section below for the definitions as applied. The comparatives in the management report to this press release contain information that is presented on a pro forma basis ('pro forma'), which includes the Firmenich results as if the merger had occurred on January 1, 2022. The pro forma figures represent the results from continuing operations - please also refer to the Integrated Annual Report 2023.

Alternative Performance Measures (APMs)

In monitoring the financial performance of dsm-firmenich, management uses certain Alternative performance measures (APMs) not defined by IFRS. These APMs should not be viewed in isolation as alternatives to the equivalent IFRS measures and should be used as supplementary information in conjunction with the most directly comparable IFRS measures. APMs do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies.

To arrive at the Alternative Performance Measures (APMs) Adjusted EBITDA, Adjusted EBIT, and Adjusted net profit, adjustments are made for material items of income and expense arising from circumstances such as acquisitions and divestments, restructuring, impairments and other events (i.e., APM adjustments). Other APM adjusting events include site closure costs, environmental cleaning, litigation settlements or other non-operational (contractual) arrangements. Other than items related to acquisition and integration costs incurred in the first year from the acquisition date (including non-recurring inventory value adjustments) as well as adjustments due to previously recognized APM adjusting events, the threshold is €10 million.

The APMs used throughout this press release are:

Organic sales growth (OSG)

Organic sales growth is the sales growth excluding the impact of acquisitions, divestments, and currency impacts.

Earnings before interest, tax, depreciation and amortization (EBITDA)

EBITDA is defined as IFRS metric operating profit plus depreciation, amortization, and impairments.

Adjusted earnings before interest, tax, depreciation and amortization (Adj. EBITDA)

Adjusted EBITDA is the EBITDA adjusted for material items of profit or loss, as defined under 'APM adjustments'.

EBITDA margin

EBITDA margin is EBITDA expressed as a percentage of net sales.

Adjusted EBITDA margin (Adj. EBITDA margin)

Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of net sales.

Adjusted operating profit (Adj. EBIT)

Adjusted operating profit (Adj. EBIT) is the IFRS metric operating profit adjusted for material items of profit or loss, as defined under 'APM adjustments'.

Core adjusted EBIT (Core adj. EBIT)

Core adjusted EBIT is calculated as the IFRS metric operating profit adjusted for material items of profit or loss, as defined under 'APM adjustments', and adjusted for the impact of the Firmenich purchase price allocation (PPA).

Adjusted net profit (Adj. net profit)

Adjusted net profit is the IFRS metric net profit adjusted for material items of profit or loss, as defined under 'APM adjustments'.

Core adjusted net profit (Core adj. net profit)

Core adjusted net profit is the IFRS metric net profit (from continuing operations) adjusted for material items of profit or loss, as defined under 'APM adjustments', and adjusted for the impact of the Firmenich purchase price allocation (PPA).

Adjusted gross operating free cash flow (AGOFCF)

Adjusted gross operating free cash flow (AGOFCF) is defined as the IFRS metric operating profit plus depreciation, amortization, and impairments, adjusted for material items of profit or loss, as defined under 'APM adjustments', adjusted for intrinsic changes in the working capital, minus capital expenditures. This metric is based on continuing operations.

Sales to cash conversion %

Sales to cash conversion % is the adjusted gross operating free cash flow (AGOFCF) as a percentage of net sales.

Adjusted earnings per share (Adj. EPS)

Adjusted earnings per share (Adjusted EPS) is calculated as the net profit available to holders of ordinary shares adjusted for material items of profit or loss, as defined under 'APM adjustments', divided by the average number of ordinary shares outstanding.

Core adjusted earnings per share (Core adj. EPS)

Core adjusted earnings per share (Core adjusted EPS) is calculated as the net profit (from continuing operations) available to holders of ordinary shares adjusted for material items of profit or loss, as defined under 'APM adjustments', and adjusted for the impact of the Firmenich purchase price allocation (PPA), divided by the average number of ordinary shares outstanding.

Capital employed

Capital employed is the total of the carrying amount of intangible assets and property, plant and equipment, inventories, trade receivables and other receivables, less trade payables, other current liabilities, investment grants and customer funding. Average capital employed is calculated as the average of the capital employed at the end of the preceding five quarters, including the current quarter.

Core capital employed

Core capital employed is defined as capital employed, adjusted for the impact of the Firmenich purchase price allocation (PPA). Average core capital employed is calculated as the average of the core capital employed at the end of the preceding five quarters, including the current quarter.

Return on capital employed (ROCE)

Return on capital employed (ROCE) is the adjusted operating profit (from continuing operations) as a percentage of average capital employed.

Core adjusted return on capital employed (Core adj. ROCE)

Core adjusted return on capital employed (Core adj. ROCE) is core adjusted EBIT as a percentage of average core capital employed.

Operating working capital (OWC)

The total of inventories and trade receivables, less trade payables.

Operating working capital (OWC) as % of sales

Operating working capital as % of sales is the operating working capital as a percentage of annualized fourth-quarter net sales.

Working capital (WC)

The total of inventories and current receivables, less current payables.

Working capital (WC) as % of sales

Working capital as % of sales is the working capital as a percentage of annualized fourth-quarter net sales.

Capital expenditures (CAPEX)

Capital expenditures include all investments in intangible assets and property, plant and equipment.

Net debt

Net debt is the total of current and non-current borrowings less cash and cash equivalents, current investments and the net position of derivatives.

Condensed consolidated financial statements 2024

Condensed consolidated income statement

	FY 2024	FY 2023
Continuing operations
Net sales	12,799	10,627
Gross profit	4,245	2,611
Operating profit	561	(497)
Financial income and expense	(134)	(150)
Profit before tax	427	(647)
Income tax expense	(147)	18
Share of net profit of associates and joint ventures	-	(7)
Net profit from continuing operations	280	(636)
Net profit from discontinued operations	-	2,789
Net profit for the period	280	2,153
Attributable to:
- Holders of shares	250	2,131
- Non-controlling interests	30	16
- Dividend on cumulative preference shares	-	6
Earnings per share (EPS) total (in €):
- Basic EPS	0.94	9.14
Earnings per share (EPS) continuing operations (in €):
- Basic EPS	0.94	(2.82)

Condensed consolidated balance sheet

in € millions	December 31 2024	December 31 2023
Assets
Goodwill and intangible assets	18,078	18,738
Property, plant and equipment	5,725	5,549
Deferred tax assets	299	228
Share in associates and joint ventures	342	130
Derivatives	51	46
Other non-current assets	453	735
Non-current assets	24,948	25,426
Inventories	3,290	3,390
Trade receivables	2,589	2,553
Income tax receivables	51	107
Other receivables	129	183
Derivatives	23	42
Financial investments	50	107
Cash and cash equivalents	2,667	2,456
Sub-total	8,799	8,838
Assets held for sale	-	6
Current assets	8,799	8,844
Total assets	33,747	34,270
Equity and liabilities
Shareholders' equity	22,511	22,908
Non-controlling interest	186	162
Equity	22,697	23,070
Deferred tax liabilities	1,556	1,751
Employee benefit liabilities	487	520
Provisions	87	142
Borrowings	4,444	4,114
Derivatives	7	8
Other non-current liabilities	109	146
Non-current liabilities	6,690	6,681
Employee benefit liabilities	62	49
Provisions	77	34
Borrowings	836	716
Derivatives	60	28
Trade payables	2,276	2,174¹
Income tax payables	223	177
Other current liabilities	826	1,333¹
Sub-total	4,360	4,511
Liabilities held for sale	-	8
Current liabilities	4,360	4,519
Total equity and liabilities	33,747	34,270

¹ Restated for comparative purposes.

Condensed consolidated cash flow statement

in € millions	FY 2024	FY 2023
Cash and cash equivalents (at beginning of period)	2,456	2,755
Operating activities
EBITDA	1,991	3,637
Changes in working capital	198	160
Income tax	(275)	(179)
Result divestments	(47)	(2,845)
Other	(89)	492
Cash provided by operating activities	1,778	1,265
Investing activities
Payments for intangible assets and property, plant and equipment	(764)	(684)
Acquisition of subsidiaries	(5)	(3,691)
Disposal of subsidiaries	42	3,533
Proceeds from disposal of other non-current assets	416	16
Change in short-term financial investments	43	45
Interest received	33	60
Dividend received and capital (re)payments	6	(5)
Other cash from / used in investing activities	(23)	-
Cash used in investing activities	(252)	(726)
Financing activities
Dividends paid	(667)	(582)
Interest paid	(67)	(61)
Repurchase of shares	(706)	(256)
Proceeds from (re)issued shares	21	757
Proceeds from / repayment of borrowings	210	(549)
Payment of lease liabilities	(110)	(73)
Proceeds from / repayment of debt to credit institutions	38	(7)
Other cash from / used in financing activities	(53)	(49)
Cash (used in) / from financing activities	(1,334)	(820)
Change in cash and cash equivalents	192	(281)
Exchange differences relating to cash held	19	(18)
Cash and cash equivalents at 31 December	2,667	2,456

Reconciliation to Alternative Performance Measures

in € millions	FY 2024	FY 2023
Operating profit (EBIT)	561	(497)
Depreciation, amortization and impairments	1,430	1,307
EBITDA	1,991	810
Acquisitions/divestments	40	363
Restructuring	45	234
Other	42	36
Sub-total APM adjustments to EBITDA	127	633
Adj. EBITDA	2,118	1,443
Operating profit (EBIT)	561	(497)
APM adjustments to EBITDA	127	633
Impairments of PPE and Intangible assets	238	294
Sub-total APM adjustments to operating profit (EBIT)	365	927
Adj. operating profit (EBIT)	926	430
PPA adjustments dsm-firmenich	287	184
Core adj. operating profit (EBIT)	1,213	614
Net profit from continuing operations	280	(636)
APM adjustments to operating profit (EBIT)	365	927
APM adjustments to financial income and expense	5	34
Income tax related to APM adjustments	(45)	(135)
APM adjustments to share of the profit of associates/jointly controlled entities	(4)	-
Sub-total APM adjustments	321	826
Adj. Net profit continuing operations	601	190
PPA adjustments dsm-firmenich	248	190
Core adj. net profit continuing operations	849	380
Profit attributable to non-controlling interests	(30)	(16)
Dividend on Cumulative Preference Shares	-	(6)
Core adj. net profit continuing operations available to holders of ordinary shares	819	358

The main APM adjustments in 2024 were:

• Acquisition (merger), divestment, and integration costs of €40 million, mainly related to the merger transaction, the divestment of the yeast extracts business, the sale of the Jiangshan vitamin C business, and the preparation for the Animal Nutrition & Health business carveout.
• Restructuring costs of €45 million, mainly related to the vitamin transformation program.
• Impairments of Property, Plant and Equipment (PPE), goodwill and intangible assets of €238 million, mainly related to the divestments of the marine lipids business and the yeast extracts business and some other small impairments following the portfolio tuning.

	2024		2023
	Continuing operations	Total	Continuing operations	Total
Earnings per share (EPS)
Average number of ordinary shares outstanding (x million)	264.6	264.6	233.2	233.2
x € million
Net profit available to holders of ordinary shares	250	250	(658)	2,131
Adjusted net profit available to holders of ordinary shares	571	571	168	161
Core adj. net profit available to holders of ordinary shares	819	819	358	351
in €
EPS	0.94	0.94	(2.82)	9.14
Adj. EPS	2.16	2.16	0.72	0.69
Core adj. EPS	3.10	3.10	1.54	1.51

	2024	2023
Adjusted EBITDA	2,118	1,441
Change working capital, total group	198	160
Capital expenditures, total group	(764)	(692)
Excluding discontinued operations	-	(53)
Adj. gross operating free cash flow	1,552	856
Net sales	12,799	10,627
Sales to cash conversion %	12.1	8.1

Geographical information

	Switzer- land	Nether- lands	Rest of EMEA	North America	Latin America	China	Rest of Asia	Total
FY 2024
Net sales (by destination)
In € millions	214	420	3,938	2,928	1,887	1,096	2,316	12,799
In %	2	3	30	23	15	9	18	100
Workforce at period-end (headcount)	3,734	1,776	8,134	4,155	3,565	3,365	3,485	28,214
Intangible assets and property, plant and equipment at period-end (carrying amount)	14,946	1,618	3,220	2,689	428	603	299	23,803
FY2023
Net sales (by destination)
In € millions	204	424	3,103	2,420	1,653	997	1,826	10,627
In %	2	4	29	23	16	9	17	100
Workforce at year-end (headcount)	3,647	1,783	7,953	4,264	3,617	4,664	3,373	29,301
Intangible assets and property, plant and equipment at year-end (carrying amount)	15,474	1,665	3,147	2,600	506	612	283	24,287

Notes to the Condensed consolidated financial statements

The financial statements and other reported data in this press release have not been audited.

Financial calendar

March 25, 2025 - ESG expert investor event
April 30, 2025 - publication of dsm-firmenich Q1 2025 trading update
May 6, 2025 - AGM
July 31, 2025 - publication of dsm-firmenich H1 2025 results
October 30, 2025 - publication of dsm-firmenich Q3 2025 trading update

Additional information

Today dsm-firmenich will hold a webcast for investors and analysts at 9:00 am CET. Details on how to access this call can be found on www.dsm-firmenich.com.

For more information

Media relations
Robin Roothans
tel. [phone]
e-mail [e-mail]

Investor relations
Dave Huizing
tel. [phone]
e-mail [e-mail]

About dsm-firmenich

As innovators in nutrition, health, and beauty, dsm-firmenich reinvents, manufactures, and combines vital nutrients, flavors, and fragrances for the world's growing population to thrive. With our comprehensive range of solutions, with natural and renewable ingredients and renowned science and technology capabilities, we work to create what is essential for life, desirable for consumers, and more sustainable for the planet. dsm-firmenich is a Swiss-Dutch company, listed on the Euronext Amsterdam, with operations in almost 60 countries and revenues of more than €12 billion. With a diverse, worldwide team of nearly 30,000 employees, we bring progress to life every day, everywhere, for billions of people.
www.dsm-firmenich.com

Forward-looking statements
This press release may contain forward-looking statements with respect to dsm-firmenich's future performance and position. Such statements are based on current expectations, estimates and projections of dsm-firmenich and information currently available to the company. dsm-firmenich cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance, transaction progress and positions to differ materially from these statements. dsm-firmenich has no obligation to update the statements contained in this press release, unless required by law. This communication contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. The English language version of this press release prevails over other language versions.

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