DSM-Firmenich Raises Cash Flow Target to 14% and Accelerates 2027 Plan
On Thursday, March 12, DSM-Firmenich presented its strategic action plan during an investor conference in London. Having completed its transformation into a consumer-focused company following the divestiture of its Animal Nutrition & Health business, the group announces execution priorities for 2026-2027 centered around growth, margin expansion, and improved cash conversion.
Completion of Integration and Cost Synergy Delivery
DSM-Firmenich has completed the integration of the merger and the delivery of €175 million in cost synergies. The group now relies on a 'fundamentally strengthened' base to accelerate its financial performance. The focus is on execution for the years 2026-2027, structured around a multi-lever plan combining growth, expansion of adjusted EBITDA margins, and improved cash conversion. The group also adopts a disciplined approach to capital allocation, normalization of investment expenditures, and reduction of working capital requirements.
Strategic Plans Across Three Business Divisions
The three business divisions—Perfumery & Beauty, Health, Nutrition & Care, and Taste, Texture & Health—have presented their respective action plans aimed at growth and innovation. The group anticipates an acceleration of performance across all three key strategic financial targets for 2027, enabling it to achieve its medium-term objectives starting from 2028. The medium-term target for adjusted gross operational Free Cash Flow has been raised to ?14% from ?10% previously.
