DSM-Firmenich, a Dutch nutrition, health, and bioscience company, has announced a decrease in sales for the third quarter. The company anticipates that its cost-reduction program will begin to show results in the fourth quarter.
Sales for the quarter reached 3.05 billion euros ($3.24 billion), compared to the previous year’s pro forma sales of EUR3.45 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to EUR409 million, down from EUR599 million on a pro forma basis.
DSM-Firmenich expressed satisfaction with the consistent performance of its perfumery & beauty business and the resilience of the taste, texture & health business. However, destocking and pressure on vitamin prices continue to impact the animal nutrition & health and health, nutrition & care divisions.
The company’s guidance for 2023 includes an expected adjusted EBITDA of approximately EUR1.80 billion on a pro forma basis. This projection takes into account an estimated negative vitamin effect of around EUR500 million and a negative foreign exchange effect of approximately EUR90 million.
In light of these circumstances, Chief Executive Dimitri de Vreeze stated, “We are currently reassessing all segments to prioritize and expedite the growth of high-profit and high-margin businesses.”
