DSM-firmenich’s share price has risen after the company reported a 19% increase in earnings in the second quarter of 2025, beating analyst expectations.
Shares of the Euronext-listed fragrance and flavour company were trading more than 3% higher at the time of writing on Thursday (31 July) morning.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) was €610m, up from €513m in the same period last year, and ahead of the €609m consensus estimate by analysts.
In its perfume and beauty business, DSM-firmenich said good growth in perfumery was offset by weak performance in beauty due to sun filters.
“We are pleased to report a good performance in the first six months, with good organic sales and earnings growth and the effective execution of our strategic plan,” said DSM-firmenich CEO Dimitri de Vreeze.
“Through our combined capabilities, we continue to make good progress in delivering comprehensive cost and revenue synergies across our businesses, demonstrating the success of our merger.
“With our broad exposure to key market trends in nutrition, health and beauty, we deliver innovative solutions that provide critical performance to essential everyday consumer products.
“Our unique portfolio and global operational footprint position us well to operate in the current uncertain macroenvironment.
“Our focus on innovation-led growth, and the €200m contribution from our self-help programs support our full-year 2025 outlook of around €2.4bn in adjusted EBITDA.”
The full-year outlook “reflects volatile foreign exchange rate effects”, the company said in a statement.
Synergies from the merger in 2023 of Dutch-Swiss nutrition, health and biosciences firm DSM and Swiss perfumery player Firmenich, are expected to contribute €100m to adjusted EBITDA in the 2025 financial year.
Cost-cutting in its vitamin business is also expected to contribute €100m over the same period.
The company put its Animal Nutrition & Health division up for sale last year, and said a deal is “advancing and is entering its final stages” and will “reduce its exposure to vitamins earnings volatility and its capital intensity, in line with its long-term strategy”.
DSM-Firminech completed the sale of its stake in the Feed Enzymes Alliance Novonesis for €1.5bn in June.
Meanwhile, the company’s €1bn share buyback programme, which commenced in April, has accelerated and is forecast to complete by 30 January 2026.
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