Dsm-Firmenich announced its financial performance for the first quarter of 2024, with sales dropping by 2% to 3.07 billion euros in the first three months. There was a 3% rise in volumes in 2024 Q1, although this was counteracted by reduced prices due to decreased input expenses. There was notable natural sales expansion in Perfumery & Beauty and Taste, Texture & Health sectors, but this was balanced out by weaker performance in Health, Nutrition & Care, as well as Animal Nutrition & Health segments.
In the Perfumery & Beauty segment, there was a 2% increase in organic sales growth, primarily fueled by a 4% rise in volumes (which includes a 2% negative impact from the closure of the Pinova plant), balanced out by a 2% decrease in prices due to reduced input costs.
Within Fragrances, there was a robust performance with high-single digit growth in organic sales, driven by strong consumer fragrances demand, despite tough comparisons with the previous period in fine fragrances. Personal Care also demonstrated strong performance with high-single digit organic growth, propelled by healthy end-user demand.
Taste, Texture & Health achieved significant organic growth driven by improved momentum in end markets as the effects of destocking diminished. Volumes increased by 6%, primarily due to strong demand for Taste and Ingredients solutions, particularly in Enzymes, Cultures, and Texturants, while vitamin sales remained sluggish. Prices remained steady overall.
Organic sales in Health, Nutrition & Care declined by 9%, with a 6% decrease in volumes and a 3% decrease in prices, primarily due to the impact of the vitamin market. The business experienced continued destocking by customers in key end markets, particularly noticeable in Early Life Nutrition and Dietary Supplements. There was also a shortage of fish oil industry-wide, affecting volumes of marine lipids for Dietary Supplements. However, there were signs of improving demand momentum as the business entered the second quarter.
Animal Nutrition & Health continued to face challenges due to exceptionally low vitamin prices and poor demand for individual vitamins. In addition to implementing the vitamin transformation program, the business remains committed to conserving cash, with a primary focus on reducing inventory levels while maintaining profitability. Despite this, performance solutions remained strong, as farmers emphasized efficiency and yield management. Although the unit achieved a 3% increase in volume growth, this was offset by a 6% decline in prices.
Dimitri de Vreeze, CEO, said: “We are pleased to see a more positive market environment and the return of volume growth in our business, together with a further sequential step up in margin. This is most evident for Perfumery & Beauty and Taste, Texture & Health, while we also expect a better momentum developing for Health, Nutrition & Care. Animal Nutrition & Health saw early signs of improving demand and vitamin prices. Overall, we remain cautious as to the robustness of the market recovery trends and maintain our current full year guidance.”
