- DSM-Firmenich‘s third-quarter Adjusted EBITDA was €540 million, closely matching the estimate of €545.1 million.
- The Adjusted EBITDA margin reached 17.6%.
- Net sales for the quarter were €3.07 billion, exactly hitting the estimates.
- Animal Nutrition & Health sales were €782 million, exceeding the estimate of €779.8 million.
- Health, Nutrition & Care sales were slightly below expectations at €502 million compared to the estimate of €512.5 million.
- Perfumery & Beauty sales came in at €970 million, surpassing the estimate of €963.7 million.
- Taste, Texture & Health sales were €809 million, higher than the estimated €797.3 million.
- The company achieved an organic sales growth of 2%.
- DSM-Firmenich now projects a full-year 2025 Adjusted EBITDA of approximately €2.3 billion, factoring in unfavorable foreign exchange and vitamin price effects.
- A significant increase of over €300 million in Adjusted EBITDA compared to 2024 is expected, driven by organic growth, merger synergies, and self-help initiatives.
- Market analysts have issued 20 buy recommendations, 1 hold, and 2 sell ratings for the company’s stock.
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DSM-Firmenich on Smartkarma
Analysts on Smartkarma are closely monitoring DSM-Firmenich, a result of a €20 billion merger between DSM and Firmenich. Despite concerns about integration and synergy goals, the company is seen as a promising growth opportunity. A report from Value Investors Club highlighted the challenges faced by the new entity, including skepticism about achieving targeted revenue and EBITDA synergies due to minimal overlap between the merging companies. However, the merger, occurring amidst a market downturn for DSM, also presents a unique chance for the combined expertise in nutrition, health, and fragrances to thrive.
The research report by Value Investors Club sheds light on the uncertainties surrounding DSM-Firmenich but underscores the potential for growth in the face of market challenges. Analysts are keeping a bullish stance on the company, emphasizing its strategic positioning in various sectors. While integration concerns persist, the unique strengths of DSM and Firmenich suggest a bright future ahead for the newly formed entity. This insightful analysis provides a comprehensive overview of the opportunities and risks involved in investing in DSM-Firmenich, offering valuable insights for investors navigating the evolving landscape of the merged company.
A look at DSM-Firmenich Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysing DSM-Firmenich‘s overall outlook using the Smartkarma Smart Scores reveals a promising future for the company. With a top rating of 5 for both Value and Growth, it suggests that DSM-Firmenich is considered a solid investment with strong potential for growth. This indicates that the company is undervalued compared to its intrinsic value and has a robust growth trajectory ahead.
While the scores for Dividend and Resilience are slightly lower at 4 and 3 respectively, they still signify a company with a steady dividend payout and a reasonable ability to weather economic uncertainties. The Momentum score of 2 implies that DSM-Firmenich may currently be facing some challenges in terms of market sentiment or short-term performance.
Summary of the company:
### DSM-Firmenich AG is an innovator in nutrition, health, and beauty products. The Company reinvents, manufactures, and combines vital nutrients, flavors, and fragrances. DSM-Firmenich serves customers worldwide. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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