The following is a summary of the DSM-Firmenich AG (KDSKF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• DSM-Firmenich reported a Q1 EBITDA margin of 15% and expects yearly EBITDA growth of at least €1.9 billion due to internal improvements.

• Negative factors included the impact of vitamin effects and a fish oil shortage on sales and EBITDA, impacting the HNC and Animal Nutrition sectors.

• Their self-help actions have already started to pay off, contributing €45 million in Q1.

• They plan to continue to improve their profit margin by shifting production from a focus on volume to value.

Business Progress:

• Despite negative impacts to some sectors, DSM-Firmenich saw sequential improvements in the Perfumery & Beauty and Taste, Texture & Health segments due to increased sales.

• The company started preparations for the separation of the Animal sector announced last year.

• In response to the fish oil shortage, DSM-Firmenich is shifting to algal-based lipids through their Veramaris venture and is regulating their inventory levels carefully, particularly for vitamin A.

• Their strategy to prioritize value over volume in their products and ingredients is proving successful, with notable contributions already appearing in Q1.

More details: KONINKLIJKE DSM NV IR

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