DSM-Firmenich Reports 3% Organic Growth in 2025 and Completes Strategic Refocus
On Thursday, DSM-Firmenich announced its annual results for 2025, featuring a 3% organic sales growth in continued operations and an Adjusted EBITDA margin of around 20%. The company also declared the completion of its strategic restructuring with the sale of its Animal Nutrition & Health division to CVC Capital Partners for an enterprise value of approximately 2.2 billion euros.
Sales and EBITDA Growth in 2025
DSM-Firmenich recorded a 3% organic sales growth in 2025 for its continued operations, driven by advancements in its three business divisions. This performance is primarily attributed to an increase in volumes amidst a gradually deteriorating macroeconomic environment over the second half of the year. Adjusted for currency effects, the sales growth would have been higher, with currencies having a negative impact of about 4%. Adjusted EBITDA increased by 5% corrected for this currency effect, bringing the margin to around 20%, benefiting from notable improvements in the Taste, Texture & Health and Health, Nutrition & Care divisions. The Perfumery & Beauty division achieved a 3% organic growth, supported by strong performance in perfumery, while the Beauty & Care division suffered from weaknesses in sunscreens. Taste, Texture & Health delivered a growth of 4%, supported by merger synergies, although more cautious customer demand in the second half limited momentum. Health, Nutrition & Care continued its recovery trajectory with a growth of 3%, fueled by Dietary Supplements and Infant Nutrition. In the fourth quarter, the group delivered a 2% organic growth, reflecting tighter market conditions and some customer destocking.
Progress in Merger Synergies
DSM-Firmenich continued to realize its merger synergies, accumulating about 350 million euros of total expected Adjusted EBITDA. In 2025, the group realized approximately 65 million euros in cost synergies, bringing the total achieved to about 175 million since the merger. This part of the program concluded at the end of 2025. Concurrently, about 100 million euros in revenue synergies were generated in 2025, bringing the cumulative total to about 175 million. These contributed 60 million euros to Adjusted EBITDA since the merger, with 35 million in 2025. The remaining 115 million euros in Adjusted EBITDA contribution from revenue synergies are expected to be realized by 2027. Cash generation remained robust, with a conversion of sales to cash of 10.5%, driven by rigorous working capital management in the second half. The group confirmed medium-term ambitions including an annual organic growth of 5 to 7%, an EBITDA margin of 22 to 23%, and a sales to cash conversion exceeding 10%.
Strategic Divestiture and Shareholder Remuneration
On February 9, 2026, DSM-Firmenich announced the signing of an agreement with CVC Capital Partners for the sale of its Animal Nutrition & Health division for an enterprise value of approximately 2.2 billion euros, including an earnout of up to 500 million euros. The company will retain a 20% equity stake. This transaction follows the sale of the Feed Enzymes business to Novonesis for 1.5 billion in 2025. The announcement of this sale resulted in a non-cash impairment of approximately 1.9 billion euros before taxes in 2025. Regarding shareholder remuneration, the group will launch a new ordinary share buyback program worth an aggregate market value of 500 million euros in 2026, starting in the first quarter. The board of directors will propose to the general meeting on May 7, 2026, a cash dividend of 2.50 euros per share for the fiscal year 2025, of which 1.64 euros will be drawn from capital reserves without Swiss withholding tax deduction and 0.86 euros from available earnings subject to a Swiss withholding tax of 35%. DSM-Firmenich has adopted a stable to preferably increasing dividend policy, reflecting its commitment to long-term value creation.
