dsm-firmenich raises its annual sales growth outlook to about 5 per cent
dsm-firmenich has raised its full-year like-for-like sales growth outlook from 2–4 per cent to approximately 5 per cent after its third-quarter update. Continuing-operations sales reached 2.368 billion euros. The company retained its annual adjusted margin and cash conversion forecasts, while quarterly adjusted profit increased and the margin improved from the preceding quarter. Perfumery and Beauty recorded 8 per cent like-for-like growth.
Economics & Markets··Evening
Annual growth forecast moves to about 5 per cent
dsm-firmenich has raised its annual like-for-like sales growth outlook from 2–4 per cent to approximately 5 per cent after publishing its third-quarter update.[1], [2]
The ingredients group’s continuing-operations sales rose from 2.238 billion euros to 2.368 billion euros. Like-for-like quarterly growth was 5 per cent, which management described as led by higher volumes. Continuing operations exclude the Animal Nutrition and Health business whose divestment has been announced. The financial figures in the trading update are unaudited.[1]
Adjusted quarterly profit reaches 482 million euros
Adjusted earnings before interest, tax, depreciation and amortisation increased from 458 million euros to 482 million euros. The adjusted margin reached 20.4 per cent, an improvement from the preceding quarter but below the 20.5 per cent recorded a year earlier. Foreign exchange reduced the annual margin comparison by 0.8 percentage points. The company kept its annual adjusted margin forecast at about 20 per cent.[1]
Perfumery leads growth across the three businesses
Perfumery and Beauty generated 1.015 billion euros of sales with 8 per cent like-for-like growth. Taste, Texture and Health posted 813 million euros, growing 3 per cent, while Health, Nutrition and Care reached 515 million euros with 5 per cent growth. Management also retained its forecast for adjusted gross operating free cash flow equal to 11–12 per cent of annual sales.[1]
