DSM-Firmenich raises its growth target to 5% after a 5% increase in third-quarter sales
On November 4, 2026, DSM-Firmenich raised its full-year like-for-like sales growth target to around 5%, compared with 2% to 4% previously. This upgrade is based on third-quarter like-for-like sales up 5%, to €2,368 million, driven by volumes (+5%) at stable prices.
Profitability can be read in two stages. Adjusted EBITDA rose 8% on a like-for-like basis, but the adjusted EBITDA margin came in at 20.4%, down 0.1 point year on year, reflecting a negative currency effect of 80 basis points that slowed the increase.
For its part, the group highlights a new increase in this margin compared with the previous quarter.
Adjusted EBITDA up 8% on a like-for-like basis, held back by currency
For the quarter, adjusted EBITDA reached €482 million, compared with €458 million a year earlier. The reported increase is limited to 5%, as the currency effect subtracts 3 points from the 8% like-for-like growth. Reported revenue, meanwhile, rose 6%, with currency contributing positively by one point.
For the nine months, the picture is comparable. Sales came to €7,032 million, up 5% on a like-for-like basis but only 2% on a reported basis, due to currency (-2%) and scope (-1%). The adjusted EBITDA margin fell 0.1 point, to 19.7%.
The group states that it continues to respond to cost inflation through its savings and restructuring programme, as well as new pricing actions. Its Chief Executive Officer, Dimitri de Vreeze, said: “We delivered another good quarter of growth driven by volumes and continuous improvement in the adjusted EBITDA margin.”
Perfumery drives growth, North America weighs on two divisions
As the leading division by sales, Perfumery & Beauty generated €1,015 million in the third quarter, up 8% on a like-for-like basis.
Mass-market fragrances recorded double-digit growth, while fine fragrance grew at a high single-digit rate. Its adjusted EBITDA rose 10% on a like-for-like basis, and its adjusted EBITDA margin remained stable at 22.0%.
Health, Nutrition & Care accelerated, with growth of 5% in the third quarter versus 4% over nine months, supported by infant nutrition and demand for HMOs (human milk oligosaccharides).
Dietary supplements remain affected by cautious consumption in North America. Its adjusted EBITDA margin fell 0.6 point over the quarter, to 22.1%, with a negative currency effect of 130 basis points.
Taste, Texture & Health, by contrast, slowed to +3% over the quarter versus +4% over nine months, with North America having been “weak”. Its adjusted EBITDA margin fell 0.3 point year on year, to 20.7%, but rose compared with 20.2% in the second quarter.
Raised growth target and €540 million in shares repurchased
For 2026, the group now targets sales growth of around 5% on a like-for-like basis, an adjusted EBITDA margin of around 20%, and an adjusted gross operating free cash flow to sales ratio of 11% to 12%. Management indicated that business conditions “remain favourable” as the fourth quarter begins.
On September 30, DSM-Firmenich completed its share buyback programme: 7,169,147 shares were acquired at an average price of €75.32, for a total of €540 million. The 6,488,446 shares intended for cancellation are expected to be cancelled by the end of the first quarter of 2027, reducing the number of shares issued by approximately 2.6%.
These figures cover the continuing scope, excluding animal nutrition and health, the sale of which to CVC Capital Partners was announced in February 2026. Sales of this business declined 9% on a like-for-like basis in the third quarter.
The upgrade concerns sales. As for profitability, the annual adjusted EBITDA margin target of around 20% has already been exceeded in the quarter, but not yet achieved over nine months. The group will publish its annual results on February 18, 2027.
