￥97.5 Billion! Fragrance Giant Successfully “Slims Down and Strengthens”

DSM-Firmenich has released its 2024 financial report. According to the data, the company's total sales for 2024 reached €12.799 billion (approximately ￥97.5 billion), a year-on-year increase of 4%. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was €2.118 billion (approximately ￥16.1 billion), up 19% year-on-year. The adjusted EBITDA margin increased by 2.1 percentage points to 16.5%, while core adjusted profit surged by 53% to €849 million (approximately ￥6.5 billion).

These results indicate that over the past year, DSM-Firmenich not only achieved growth in both sales and profit but also significantly enhanced the competitiveness of its core business through restructuring, cost control, and operational optimization.

Fragrance & Beauty Leads, ANH Business Profits Soar

By business segment, DSM-Firmenich’s Perfumery & Beauty (P&B) division performed exceptionally well in 2024, with sales increasing by 7% year-on-year to €3.964 billion (approximately ￥30.2 billion). Adjusted EBITDA reached €882 million (approximately ￥6.7 billion), up 13% year-on-year. This growth was primarily driven by strong market demand and the company’s innovative products in the fabric care sector, such as the PopScent? freshness series, HALOSCENT? patented fragrance ingredients, and the Eterwell? product line.

The Taste, Texture & Health (TTH) division recorded sales of €3.245 billion (approximately ￥24.7 billion), growing 7% year-on-year. Adjusted EBITDA was €615 million (approximately ￥4.7 billion), up 11% year-on-year. The division's plant-based food solutions performed well, while its yeast extract business, sold to France’s Lesaffre in June 2024, continues to be supplied through a contract manufacturing agreement.

The Health, Nutrition & Care (HNC) division saw a 2% decline in sales, reaching €2.214 billion (approximately ￥16.9 billion), with adjusted EBITDA at €371 million (approximately ￥2.8 billion), down 5% year-on-year. Although this was the only segment to experience a downturn, the company remains confident about its future growth, particularly with the rising market demand for algae-based Omega-3 and HMOs (Human Milk Oligosaccharides).

The Animal Nutrition & Health (ANH) division, which is set to be divested, achieved a 3% year-on-year increase in sales, reaching €3.324 billion (approximately ￥25.3 billion). Organic sales grew by 5%, with 3% coming from volume growth and 2% from price increases. The division's adjusted EBITDA skyrocketed by 168% to €343 million (approximately ￥2.6 billion), mainly due to recovering vitamin prices and temporary pricing effects from supply disruptions.

Business Restructuring & Regional Performance

By region, Europe, the Middle East, and Africa (excluding Switzerland and the Netherlands) contributed the most to DSM-Firmenich’s sales, accounting for 30% with revenue of €3.938 billion (approximately ￥30 billion). The Chinese market contributed 9% of the company's total sales in 2024, reaching €1.096 billion (approximately ￥8.3 billion).

2025 Outlook: Targeting €2.4 Billion Profit & Accelerating Business Optimization

In its financial report, DSM-Firmenich outlined its strategic goals for 2025, aiming for an adjusted EBITDA of at least €2.4 billion (approximately ￥18.3 billion). The company plans to continue accelerating innovation, leveraging synergies, completing its vitamin transformation plan, and advancing business restructuring and optimization. Key measures include:

• Completing the sale of the yeast extract business (annual sales of ￥2.285 billion) and marine lipids business, as well as finalizing the divestiture of the ANH business in 2025, further focusing on high-growth sectors such as fragrance & beauty, taste & health, and health & care.
• Achieving €350 million (approximately ￥2.7 billion) in merger synergy benefits, with €105 million (approximately ￥800 million) already realized in 2024.
• Continuing the vitamin transformation plan initiated in 2023, with the remaining €100 million target expected to be met in 2025.

Additionally, DSM-Firmenich announced a stock repurchase plan, aiming to buy back €1 billion in shares between Q2 2025 and Q2 2026. The company has also set mid-term goals of 5-7% organic sales growth and an adjusted EBITDA margin of 22-23%.

Conclusion

Based on the 2024 financial report, DSM-Firmenich has successfully reversed four consecutive quarters of declining performance since its merger in May 2023. Despite ongoing global supply chain challenges, the company has achieved its goal of “slimming down and strengthening” through a series of restructuring and innovation initiatives, demonstrating strong growth momentum. Looking ahead to 2025, DSM-Firmenich remains confident in its future development and maintains an optimistic outlook.