dsm-firmenich beats Q2 forecasts as sales growth accelerates to 6%
The ingredients manufacturer reported strong growth in fragrances and food ingredients while confirming plans to cut around 1,000 jobs worldwide.
NETHERLANDS – Dutch-Swiss ingredients and nutrition company dsm-firmenich has reported better-than-expected results for the second quarter, with like-for-like sales growth accelerating to 6% and adjusted EBITDA beating market consensus by 3%.
According to the company, performance was driven by its Taste, Texture & Health division, which grew 6%, and Perfumery & Beauty, which expanded 7%, while Health, Nutrition & Care delivered steady 4% growth.
Management noted particularly strong June trading as customer sentiment improved following the easing of Middle East concerns. Second-quarter adjusted EBITDA reached €466 million (USD 534 million), beating Bloomberg consensus of €452 million (USD 492 million) and Barclays’ estimate of €457 million (USD 498 million).
According to dsm-firmenich, the Taste, Texture & Health division delivered growth of 6%, while the Perfumery & Beauty business expanded by 7%. The Health, Nutrition & Care segment reported growth of 4%.
The company said stronger trading conditions in June supported the results as concerns surrounding geopolitical tensions in the Middle East eased.
Taste, Texture & Health was one of the strongest-performing divisions, with growth accelerating significantly from 2% in the first quarter.
The increase was supported by revenue collaboration, the timing of Bovaer sales and stronger demand for dairy, beverage and bakery ingredients.
Management also highlighted additional support from increased demand linked to preparations for the 2026 FIFA World Cup in North America.
The Perfumery & Beauty business continued to perform strongly, recording double-digit growth in both fine fragrances and consumer fragrances.
Chief executive officer Dimitri de Vreeze told Reuters that he expects growth in the fragrance segment to moderate in the coming months.
“We see high-single-digit percentage growth as being more in line with the industry’s normal pace,” de Vreeze said.
The company’s food ingredients business also benefited from stronger regional demand, including improving market conditions in Latin America.
Despite the positive performance, dsm-firmenich maintained its full-year outlook while indicating that annual sales growth is likely to reach the upper end of its previously announced guidance range of 2% to 4%.
“This outlook assumes that, also in the second half, the conflict in the Middle East will have a limited impact,” the company said.
Alongside its financial results, dsm-firmenich announced plans to eliminate approximately 1,000 positions globally over the next two years as part of a restructuring initiative aimed at reducing annual costs by €100 million (USD 109 million).
The company, which employs more than 28,500 people worldwide, said consultations with employee representatives are under way, adding that some reductions are expected to occur through natural attrition rather than compulsory redundancies.
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