DSM-Firmenich, in its financial report, revealed that it experienced a decline in sales for the first nine months of 2023. The company generated sales of 9.198 billion euros ($9.8 billion), representing a 7% decrease compared to the previous year. In the third quarter of 2023, sales amounted to 3.046 billion euros ($3.25 billion), down 12% year on year.
Despite the overall decline in sales, the Perfumery & Beauty segment of DSM-Firmenich performed well. In the first nine months of 2023, Perfumery & Beauty achieved sales of 2.795 billion euros ($2.98 billion), down 3% year on year. In the third quarter, sales reached 920 million euros ($980.35 million), reflecting a 7% decrease. However, when excluding the 2% negative impact from the closure of the Pinova plant in Georgia, US, the segment achieved a 2% organic sales growth. This positive performance was driven by a 3% increase in pricing across all segments. However, lower volumes in the Ingredients segment, which experienced destocking and soft demand, offset some of the growth.
Fine Fragrances within the Perfumery & Beauty segment delivered a strong performance despite challenging market conditions. Consumer Fragrances also experienced robust growth, driven by increased volumes and pricing, as customers turned to more innovative fragrances to develop superior consumer products. However, the Ingredients segment faced ongoing destocking and weak demand, particularly in its industrial offerings. On the other hand, Personal Care continued to perform well.
Dimitri de Vreeze, CEO of DSM-Firmenich, acknowledged the challenging global economic environment but emphasized that the company is taking decisive actions to mitigate the effects. These actions will provide a solid foundation for attractive innovation-driven growth. With a market-leading portfolio of ingredients, science, and technologies, the company remains confident in achieving its mid-term financial targets. DSM-Firmenich is currently reviewing all segments to prioritize and accelerate high-growth and higher-margin businesses. The company plans to provide an update on the progress of its strategic actions during its upcoming Capital Markets Day next year.
For the full year 2023, on a pro forma basis, DSM-Firmenich estimates an Adjusted EBITDA of approximately 1.8 billion euros ($1.92 billion).