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dsm-firmenich reports full year 2023 results

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KAISERAUGST, Switzerland and HEERLEN, Netherlands, Feb. 15, 2024 /PRNewswire/ —

Management Report

2023 highlights

Successful creation of dsm-firmenich with integration well ahead of planMerger-related cost and sales synergies gaining tractionAnimal Nutrition & Health to be separated from the GroupSolid performance across the company, significantly impacted by unprecedented low vitamin pricesGood operating cash flow driven by a strong performance in the second halfStable dividend of €2.50 proposedSynergies and the vitamin transformation programs will deliver a significant earnings step-up in 2024 and beyondOutlook 2024: Adjusted EBITDA of at least €1.9 billion

Key figures

in € millions

Pro forma
FY 2023¹

Pro forma
FY 2022¹

% Change

Actual
Q4 2023

Pro forma
Q4 2022¹

% Change

Sales

12,310

13,238

(7)

3,112

3,295

(6)

Organic sales growth (%)

(5)

(3)

Adj. EBITDA

1,777

2,275

(22)

439

499

(12)

Adj. EBITDA margin (%)

14.4

17.2

14.1

15.1

Core adj. net profit

555

1,013

(45)

1 Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred on January 1, 2022. The pro forma figures represent the results from continuing operations – please also refer to the section Definitions.

 

Key figures on an IFRS basis2

in € millions

FY 2023

FY 2022

% Change

Sales

10,627

8,390

27

Net profit from continuing operations

(636)

475

(234)

Net profit (total group)

2,153

1,715

26

2 Represents the figures on an IFRS basis, including the Firmenich results as of the merger date May 8, 2023.

Dimitri de Vreeze, CEO, commented: “We are proud that the company is already operating seamlessly with integration well ahead of plan, including the development of a common culture, as demonstrated in our recent employee engagement survey. Our employees have done a truly amazing job building momentum, positioning dsm-firmenich as a world leader in nutrition, health and beauty.

In light of the unprecedented conditions with very low vitamin prices and a continued destocking cycle, we took a number of immediate and effective actions. We accelerated our plans for driving through additional self-help measures and advanced the review of all our business segments. This led us to the initiation of a process to separate out the Animal Nutrition & Health business from the Group which we announced today. This should strongly reduce our exposure to vitamins earnings volatility and reduce our capital intensity in line with our long-term strategy. We believe that the full potential of the ANH business could be best realized through a different ownership structure.

Supported by our exciting innovation pipeline, all these actions would help us to prioritize and accelerate the company’s nutrition, health and beauty high-growth and higher-margin businesses, all of which is reflected in our mid-term financial targets.”

Outlook 2024

As the global political and economic environment remains uncertain, and given that it is early in the year, we feel it prudent to base our full year outlook for the entire company only on those elements which are under our control, namely a €200 million step-up in Adjusted EBITDA from a combination of synergy delivery and the vitamin transformation program. Considering that the full negative vitamin effect emerged only in Q2 2023, the effective Adjusted EBITDA run-rate in the period Q2-Q4 2023 on an annualized basis was about €1.7 billion, the company estimates for FY 2024 Adjusted EBITDA of at least €1.9 billion.

Strategy

The merger of DSM and Firmenich created a world-leader in nutrition, health and beauty, through which its highly integrated portfolio of nutritional, natural and renewable ingredients, together with complementary science capabilities and technologies, will deliver superior innovation-led growth.

By creatively applying proven science and drawing on data-driven innovation capabilities as well as exceptional standards of operational excellence, dsm-firmenich seeks to tackle the tension between what society needs, what people individually want, and what the planet demands in the areas of nutrition, health and beauty. By working closely together with customers to create what is essential for life as well as desirable for consumers yet simultaneously more sustainable for the planet, dsm-firmenich is poised to bring progress to life for billions of people around the world.

dsm-firmenich is a purpose-led company where people and planet as well as financial success are at the core of its strategy that is aimed at further enhancing its positive impact in the world, continually raising the bar to help tackle climate change, protect nature, and care for people all along the value chain.

Delivering synergies through integration

dsm-firmenich is on track to achieve its target synergies of approximately €350 million Adjusted EBITDA per year. Around half of this is expected to come from cost efficiencies, with the full run rate achieved by the end of year 3. Initial benefits of about €15 million were delivered in Q4. The remaining synergies are expected from incremental revenues of €500 million, generated by an acceleration of innovation with customers. There has been good early progress and the full run rate is still expected by the end of year 4. These revenue synergies are driven by complementary capabilities and realized in the three business units with the strongest strategic adjacency – Perfumery & Beauty (P&B); Taste, Texture & Health (TTH); and Health, Nutrition & Care (HNC) – with roughly the following balance:

60% in TTH business unit25% in HNC business unit15% in P&B business unit

Overall, we expect to see an Adjusted EBITDA contribution of about €100 million in 2024, coming mainly from cost synergies.

Separation of Animal Nutrition & Health from the Group

The Company initiates a process to carve-out and separate out the Animal Nutrition & Health (ANH) business from the Group. Full focus on nutrition, health, and beauty would enable dsm-firmenich to better drive superior innovation-led growth. Separating out Animal Nutrition & Health from the Group would minimize dsm-firmenich’s exposure to vitamins earnings volatility and reduce capital intensity in line with its long-term strategy. The Company believes that the full potential of the ANH business could be best realized through a different ownership structure for which all potential separation options will be considered. The Company would expect to be in a position to separate the business in the course of 2025.

Progressing the vitamin transformation program

In mid-2023 the company embarked on a major restructuring program in its vitamin activities to reduce costs and restore profitability. This program is expected to result in an estimated Adjusted EBITDA contribution of around €200 million per year with the full run rate to be reached by the end of 2024. These savings will be in addition to the previously announced €350 million Adjusted EBITDA synergies target. Neither of these targets will be disrupted by the separation of Animal Nutrition and Health.

dsm-firmenich has already made strong progress in executing the program through the closure of the Xinghuo vitamin B6 plant in China and shutting down the Jiangshan vitamin C production in China. The sales model now supports a ‘go-to-market’ approach which is simpler and more efficient in the current market environment.

In Q4 2023, the program generated an about €10 million savings contribution to Adjusted EBITDA. For 2024, dsm-firmenich expects to achieve an additional around €100 million Adjusted EBITDA contribution.

Stable dividend

At the Annual General Meeting on May 7, 2024, dsm-firmenich’s Board of Directors will propose a cash dividend of €2.50 per share for the financial year 2023.  

Key figures and indicators

in € millions

Pro forma
FY 2023¹

Pro forma
FY 2022¹

% Change

Actual
Q4 2023

Pro forma
Q4 2022¹

% Change

Net sales

12,310

13,238

(7)

3,112

3,295

(6)

P&B

3,709

3,792

(2)

914

916

(0)

TTH

3,038

3,174

(4)

768

806

(5)

HNC

2,270

2,418

(6)

581

587

(1)

ANH

3,227

3,784

(15)

833

971

(14)

Corporate

66

70

(6)

16

15

7

Adj. EBITDA 

1,777

2,275

(22)

439

499

(12)

P&B

783

748

5

192

166

16

TTH

556

549

1

133

137

(3)

HNC

389

533

(27)

94

121

(22)

ANH

128

524

(76)

32

95

(66)

Corporate

(79)

(79)

(12)

(20)

(40)

Adj. EBITDA margin (%)

14.4

17.2

14.1

15.1

P&B

21.1

19.7

21.0

18.1

TTH

18.3

17.3

17.3

17.0

HNC

17.1

22.0

16.2

20.6

ANH

4.0

13.8

3.8

9.8

Adj. EBIT

666

1,361

(51)

.

Core adj. EBIT

850

1,361

(38)

Core adj. net profit

555

1,013

(45)

.

Average number of shares (x millions)

265.1

264.5

Core adj. EPS

2.03

3.77

.

(Avg.) core capital employed

16,423

16,271

Core adj. ROCE (%)  

5.2

8.4

.

Operating working capital

3,872

4,021

Capital expenditures (cash)

734

775

Adj. gross operating free cash flow

999

918

1 Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred on January 1, 2022. The pro forma figures represent the results from continuing operations – please also refer to the section Definitions.

 

Key figures and indicators on an IFRS basis2

in € millions

FY 2023

FY 2022

% Change

Net sales

10,627

8,390

27

EBITDA

810

1,304

(38)

EBITDA margin (%)

7.6

15.5

EBIT

(497)

682

(173)

Net profit (total group)

2,153

1,715

Net EPS (total group)

9.14

9.80

.

Effective tax rate (%)

2.8

20.9

Net debt

(2,215)

(87)

Workforce (headcount)               

29,367

20,6823 

2 Represents the figures on an IFRS basis, including the Firmenich results as of the merger date May 8, 2023

3 Refers to total group, including discontinued operations.

 

dsm-firmenich FY 2023 and Q4

in € millions

Pro forma
FY 2023¹

Pro forma
FY 2022¹

% Change

Actual
Q4 2023

Pro forma
Q4 2022¹

% Change

Sales

12,310

13,238

(7)

3,112

3,295

(6)

Organic sales growth (%)

(5)

(3)

Adj. EBITDA

1,777

2,275

(22)

439

499

(12)

Adj. EBITDA margin (%)

14.4

17.2

14.1

15.1

1 Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred on January 1, 2022. The pro forma figures represent the results from continuing operations – please also refer to the section Definitions.

FY 2023

Good performance in Perfumery & Beauty (P&B)Solid performance in Taste, Texture & Health (TTH)Weak performance in Animal Nutrition & Health (ANH), and Health, Nutrition & Care (HNC) on exceptionally low vitamin prices and persistent de-stocking

The results for the full year were impacted by a combination of unprecedented market dynamics that led to very low vitamin prices, together with a deep destocking cycle.

Adjusted EBITDA, significantly impacted by the vitamin effect and foreign exchange was 22% lower than in the prior year, resulting in a 280bps margin decline. This includes a negative vitamin effect which is estimated at about €500 million. Without this effect, the Adjusted EBITDA would have been in line with prior year, despite a negative foreign exchange effect of about €90 million.

Q4 2023

Market conditions broadly unchangedFirst contribution from self-help initiatives materializedStrong cash flow generation, driven by disciplined action on inventory management

P&B continued to perform well, against a soft prior year comparable period, with TTH remaining resilient. ANH and HNC continued to see the same unprecedented market conditions. The quarter was notable by strong cashflow generation owing to a greater focus on, in particular, improving working capital through inventory reduction, together with the first benefits of cost synergies being realized.

Adjusted EBITDA was down 12%, owing mainly to the ongoing vitamin effect and destocking. The negative vitamin effect was estimated around €120 million and negative foreign exchange effect was slightly more than €20 million. Without this negative vitamin effect, Adjusted EBITDA would have been 24% higher than reported, despite a 5% negative FX effect. The quarter saw the initial contribution from the integration synergies of about €15 million and, in addition, savings of around €10 million from the vitamin transformation program.

Note for editors:

The full text of the press release is available here.
The presentation to investors is available here.

Financial calendar

February 22, 2024: North American Investor Event in Princeton, USA
May 2, 2024: Q1 2024 trading update
May 7, 2024: Annual General Meeting
June 3, 2024: Capital Markets Day in Paris
July 30, 2024: H1 2024 financial results
October 31, 2024: Q3 2024 trading update

Additional information

Today dsm-firmenich will hold a webcast for investors and analysts at 9:00 am CET. Details on how to access this call can be found on the dsm-firmenich website, www.dsm-firmenich.com.

For more information

Media relations 
Ingvild Van Lysebetten
tel. +41 (0)79 833 72 52
e-mail media@dsm-firmenich.com

Investor relations
Dave Huizing
tel. +31 (0)45 578 2864
e-mail investors@dsm-firmenich.com

About dsm-firmenich

As innovators in nutrition, health, and beauty, dsm-firmenich reinvents, manufactures, and combines vital nutrients, flavors, and fragrances for the world’s growing population to thrive. With our comprehensive range of solutions, with natural and renewable ingredients and renowned science and technology capabilities, we work to create what is essential for life, desirable for consumers, and more sustainable for the planet. dsm-firmenich is a Swiss-Dutch company, listed on the Euronext Amsterdam, with operations in almost 60 countries and revenues of more than €12 billion. With a diverse, worldwide team of nearly 30,000 employees, we bring progress to life™ every day, everywhere, for billions of people.
www.dsm-firmenich.com

Forward-looking statements
This press release may contain forward-looking statements with respect to dsm-firmenich’s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of dsm-firmenich and information currently available to the company. dsm-firmenich cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. dsm-firmenich has no obligation to update the statements contained in this press release, unless required by law. The English language version of this press release prevails over other language versions.

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Medius Appoints Gary Hall as Chief Product Officer to Drive Product Strategy

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BOSTON, May 12, 2025 /PRNewswire/ — Medius, a leading provider of AP Automation and Spend Management solutions, has today announced the appointment of Gary Hall as its Chief Product Officer (CPO).  

The appointment comes at a transformative time for Medius, following the recent launch of Medius Copilot for Accounts Payable Automation – a smart assistant that streamlines invoice approval, and Medius Supplier Conversations, which enhances supplier engagement through intelligent response automation. As CPO, Hall will lead the development and execution of Medius’ global product vision, ensuring the company remains at the forefront of AI-powered, digital-first spend management. 

With over 25 years of experience in engineering, product development, and strategic leadership, Hall joins Medius from working capital as a service provider GSCF, where he also served as Chief Product Officer. His track record includes scaling digital transformation initiatives, unlocking new revenue streams, and steering product strategy at industry innovators such as Wayfair and iRobot. Hall’s extensive expertise and customer-centric approach will be instrumental in accelerating Medius’ mission to empower finance teams of the future to optimize and transform spend. 

Gary Hall, Chief Product Officer, Medius, comments, “Medius is redefining the experience of managing spend with AI, and I’m excited to be part of that journey. We’re not just automating processes – we’re empowering finance teams to make faster, smarter decisions that drive real business outcomes. Leading this next chapter of product innovation is a rare opportunity, and I’m eager to help shape what the future of spend management looks like.”  

Jim Lucier, Chief Executive Officer, Medius, comments, “As we continue to integrate intelligent technologies into our product offering, Gary’s appointment as Chief Product Officer will be critical in ensuring the Medius platform enables our customers to reach their goals. Gary will be essential in leading a global product strategy that provides businesses with a complete view of their spend and continues to transform our APA and spend management solutions offering.” 

For more information, please contact: 

Dan Bird, Fight or Flight for Medius
Dan.Bird@fightflight.co.uk +44 7885 670798 / Medius@fightflight.co.uk 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/medius/r/medius-appoints-gary-hall-as-chief-product-officer-to-drive-product-strategy,c4149059

 

 

 

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TriNet Launches “Your Path, Our Purpose” Brand Campaign Celebrating the Inspiring Journeys of Small and Medium-Size Businesses

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Features TriNet Customers Van Leeuwen Ice Cream, Zap Surgical Systems, Good Culture, and Zymo Research  

DUBLIN, Calif., May 12, 2025 /PRNewswire/ — TriNet (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today unveiled its new brand campaign. Part of the “People Matter” creative idea, the new campaign, “Your Path, Our Purpose,” celebrates the unique journey of TriNet customers as they drive change, spark innovation, and positively impact their communities and employees.

At the heart of the campaign are vivid, stunning portraits captured through the lens of world-renowned photographer Annie Leibovitz, who once again collaborated with TriNet to bring these stories to life. With a dynamic visual style and stand-out special effects, by the Emmy® award-winning Garson Yu, and spectacular sounds created by artist and film composer Piers Baron, the campaign immerses viewers into each story, starting at the pivotal moment where purpose meets action. It unfolds like a book coming to life, guided by a moving pen, bringing authentic meaning to every frame.

“Small and medium-size businesses are driving change, improving lives and shaping communities through their innovation and determination,” said Michael Mendenhall, TriNet Senior Vice President, Chief Marketing Officer and Chief Communications Officer. “This campaign is a celebration of their impact and a testament to why TriNet exists—to support and empower them at every step of their journey. We are thrilled to partner again with Annie Leibovitz, who has been an integral part of our ‘People Matter’ series highlighting the incredible ways SMBs are changing the world.”

Featured Entrepreneurs and Businesses

“Your Path, Our Purpose” follows four TriNet customers on their journeys while visually spotlighting the place or moment where something happens for the greater good. Each image illustrates them driving change, innovating in their respective industries, and improving lives. The campaign highlights an impressive group of SMB leaders and their companies, all embodying the entrepreneurial spirit, including:

Zap Surgical Systems – A trailblazer in advanced surgical robotics, Zap Surgical is redefining radiosurgery with its ZAP-X platform, bringing life-saving stereotactic treatments to more people worldwide. Led by Dr. John R. Adler, Jr., a globally renowned innovator and the inventor of the CyberKnife®, Zap is at the forefront of transforming healthcare.Van Leeuwen Ice Cream – What started as a yellow scoop truck on the streets of New York City in 2008 has grown into a beloved brand with locations across the country. Co-founded by Ben Van Leeuwen, Pete Van Leeuwen, and Laura O’Neill, Van Leeuwen Ice Cream is known for its commitment to craftsmanship, offering eclectic dairy and vegan flavors that delight ice cream lovers everywhere.Zymo Research – Since 1994, Zymo Research has been a global leader in biotechnology, advancing cutting-edge discoveries in epigenetics, microbiomics, and Next-Gen Sequencing. With its innovative tools and global reach, Zymo empowers researchers in academia and the biomedical field to push the boundaries of science.Good Culture – Founded in 2015, Good Culture is revolutionizing the dairy aisle with its line of organic, pasture-raised, and additive-free cultured foods. Co-founders Jesse Merrill and Anders Eisner have turned cottage cheese into a modern-day superfood, showing the power of real, clean ingredients to transform the way we eat.

TriNet’s “Your Path, Our Purpose” campaign will run nationwide across television, radio, digital platforms, and out-of-home advertising, reaching audiences in major markets, including New York City, the San Francisco Bay Area, Los Angeles, Boston, and Atlanta. With its compelling storytelling and iconic visuals, the campaign shines a spotlight on the extraordinary contributions of small and medium-size businesses and underscores TriNet’s unwavering commitment to their success.

About TriNet
TriNet is a leading provider of Human Resources solutions for small and medium size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.   

Investors:  

Media:

Alex Bauer  
TriNet 
Alex.Bauer@TriNet.com  

Renee Brotherton/Josh Gross
TriNet
Renee.Brotherton@TriNet.com
Josh.Gross@TriNet.com

TriNet and the TriNet logo are registered trademarks of TriNet. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

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SOURCE TriNet

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X-Bow Systems Announces Final Closing of Over $105 Million Series B Funding to Deliver State-of-the-Art Defense Technologies at Speed and Scale

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ALBUQUERQUE, N.M., May 12, 2025 /PRNewswire/ — X-Bow Systems Inc (X-Bow), the leading non-traditional producer of advanced manufactured solid rocket motors (SRMs) and defense technologies, today announced the successful final closing of its Series B funding round, totaling over $105 million. The strategic portion of this round was led by Lockheed Martin with a significant investment in X-Bow Systems. To strengthen the industrial base and create mutual benefit for both companies, X-Bow and Lockheed Martin have entered into a strategic agreement allowing Lockheed Martin to accelerate X-Bow as a new independent supplier of SRMs and other services for their existing and future programs.

“We have built a highly respected ‘deep hardware technology’ company with the current Series A and B investments from our venture partners,” said Jason Hundley, chief executive officer and founder of X-Bow Systems. “This additional investment and our ongoing partnership with Lockheed Martin position us for significant growth. We are expanding our production capacity, accelerating our innovation efforts and strengthening our role as a critical independent supplier within the defense industrial base.”

“We are pleased to continue our investment in X-Bow Systems, a company developing SRM technology that aligns with our strategy to support innovative solutions that enhance our nation’s security,” said Chris Moran, vice president and general manager of Lockheed Martin Ventures. “Our follow-on investment in X-Bow Systems underscores Lockheed Martin’s dedication to advancing the aerospace and defense industry.”

Prior to this Series B raise, X-Bow established itself as a leader and innovator in the defense and aerospace sectors, demonstrated by:

Successful Launch Services: A multi-year backlog in hypersonic component flight tests and other critical DoD mission capabilities.Non-Traditional SRM Industrial Base Leader: The only new company to be integrated into over 8 SRM programs across both strategic and tactical sizes.Technology Disruption: Utilizes a patented Advanced Manufacturing of Solid Propellant (AMSP) system with over 12 development iterations, capable of printing and flying both tactical and strategic size SRM energetic grains.Innovation Expertise: Producing and executing the development of the world’s only ‘mobile energetics factory,’ the revolutionary Rocket Factory in a Box™, a rapidly deployable energetics production system that offers unprecedented flexibility for defense applications.

Fueled by private capital, X-Bow’s soon-to-open Texas energetics campus located just south of Austin, utilizes the company’s AMSP technology. Our affordable and sustainable SRM production approach allows the Department of Defense and other customers the speed and scale to counter evolving threats.

This total round included investment from Razor’s Edge Ventures, Crosslink Capital, Lockheed Martin, Balerion Space Ventures, Boeing Ventures, Bravo Victor Venture Capital, Upsher Management Company, Capital Factory Ventures, Arkenstone Capital, and Event Horizon Capital.

Union Square Advisors LLC served as exclusive financial advisor to X-Bow for this financing transaction.

About X-Bow Systems
X-Bow Systems is disrupting the aerospace industry with innovative and cost-effective advanced manufactured energetics for the solid rocket motor and launch vehicle market. X-Bow is also designing and building a suite of modular solid rocket motors and small launch vehicles for both orbital and suborbital launch services. X-Bow is led by CEO Jason Hundley, Chairman Mark Kaufman, CTO Max Vozoff, CRO Maureen Gannon, General Counsel John Leary, COO Mike Bender, CFO Hector Fernandez and a growing team of seasoned industry veterans and new space entrepreneurs. X-Bow is a dual-use technology company with investment from: Crosslink Capital, Razor’s Edge Ventures, Balerion Space Ventures, Boeing, Arkenstone Capital, The Capital Factory, Upsher Management Company, Event Horizon Capital, and Lockheed Martin Ventures. Headquartered in Albuquerque, New Mexico, X-Bow has additional presence in California, Alabama, Colorado, Texas, Utah, Maryland and Washington, DC. For more information visit XBowSystems.com.

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