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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