Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Q3 2023 Earnings Presentation
27 slides from Dsm-firmenich's earnings presentation, Oct 31, 2023
Slide 1: Presentation to Investors – Q3 2023 trading update
Presentation to Investors Q3 2023 trading update October 31, 2023
Slide 2: Q3 2023 highlights
Q3 2023 highlights €9,198m €9,943m €3,046m €3,446m • Perfumery & Beauty performed well and Taste, Texture Sales & Health was resilient Pro forma Pro forma Actual Pro forma Q3 YTD Q3 YTD Q3 2023 Q3 2022 2023 2022 • Health Nutrition & Care and Animal Nutrition & Health Growth (%) (7) (12) were weak, d
Slide 3: Executing in a challenging near-term environment
Executing in a challenging near-term environment 1 2 3 4 Portfolio review Strong future Macro Micro across segments ahead 2 Operating in a tough Own actions to Strengthen Confidence in environment with no improve short-term portfolio mid-term targets inflection yet performance • Weakness in China •
Slide 4: dsm-firmenich brings progress to life
dsm-firmenich brings progress to life Pioneer in creating and delivering solutions at the intersection of what people individually want (the desirable), what we collectively need (the essential), and what the planet demands (the sustainable) Leveraging world-class science, with differentiated biosci
Slide 5: Group financial highlights Q3 2023
Group financial highlights Q3 20231 Pro forma Pro forma % Actual Pro forma % In €m Q3 YTD 2023¹ YTD 2022¹ Change Q3 2023 Q3 2022¹ Change Sales 9,198 9,943 (7) 3,046 3,446 (12) Organic sales growth (%) (6) (7) Adj. EBITDA 1,338 1,776 (25) 409 599 (32) Adj. EBITDA margin (%) 14.5 17.9 13.4 17.4 Adj. G
Slide 6: Group financial highlights Q3 2023 – cont’d
Group financial highlights Q3 2023 – cont’d Q3 sales development Commentary Q3 €3.446m €3,046m (5)% (6)% (1)% dsm-firmenich recorded a 7% organic sales decline with (1%) pricing and (6%) volumes, vitamin driven. Without this effect, prices would have been up mid-single digit and volumes would have
Slide 7: Perfumery & Beauty
Perfumery & Beauty Key financials Pro forma Pro forma % Actual Pro forma % in €m Q3 YTD 2023¹ YTD 2022¹ Change Q3 2023 Q3 2022¹ Change Sales 2,795 2,876 (3) 920 991 (7) Organic sales growth (%) 0 0 Adj. EBITDA 591 582 2 212 217 (2) Adj. EBITDA margin (%) 21.1 20.2 23.0 21.9 7 1 Presents the figures
Slide 8: Perfumery & Beauty – cont’d
Perfumery & Beauty – cont’d Q3 sales development Commentary Q3 €991m €920m 2% organic sales growth, when excluding the 2% effect of 3% Pinova plant closure (7)% (3)% − Fine Fragrances: strong performance against a tough comparable prior period − Consumer Fragrances: strong growth and improving bus
Slide 9: Taste, Texture & Health
Taste, Texture & Health Key financials Pro forma Pro forma % Actual Pro forma % in €m Q3 YTD 2023¹ YTD 2022¹ Change Q3 2023 Q3 2022¹ Change Sales 2,270 2,368 (4) 737 836 (12) Organic sales growth (%) (2) (5) Adj. EBITDA 423 412 3 134 141 (5) Adj. EBITDA margin (%) 18.6 17.4 18.2 16.9 9 1 Presents th
Slide 10: Taste, Texture & Health – cont’d
Taste, Texture & Health – cont’d Q3 sales development Commentary Q3 €836m Organic sales of (5)% vs. a very strong Q3 2022 4% €737m (7%) − Strong pricing across TTH, except for vitamins (9%) − Volumes were soft owing to deliberate decisions to step away from some low-margin products − Strong perfor
Slide 11: Health Nutrition & Care
Health Nutrition & Care Key financials Pro forma Pro forma % Actual Pro forma % in €m Q3 YTD 2023¹ YTD 2022¹ Change Q3 2023 Q3 2022¹ Change Sales 1,689 1,831 (8) 545 626 (13) Organic sales growth (%) (6) (8) Adj. EBITDA 295 412 (28) 75 144 (48) Adj. EBITDA margin (%) 17.5 22.5 13.8 23.0 11 1 Present
Slide 12: Health Nutrition & Care – cont’d
Health Nutrition & Care – cont’d Q3 sales development Commentary Q3 €626m Organic sales of (8)% due to challenging operating environment 2% €545m (5)% − (10)% volume drop driven by ongoing destocking (10)% − Good pricing was largely offset by lower vitamin prices Dietary Supplements saw lower de
Slide 13: Animal Nutrition & Health
Animal Nutrition & Health Key financials Pro forma Pro forma % Actual Pro forma % in €m Q3 YTD 2023¹ YTD 2022¹ Change Q3 2023 Q3 2022¹ Change Sales 2,394 2,813 (15) 823 978 (16) Organic sales growth (%) (14) (13) Adj. EBITDA 96 429 (78) 11 116 (91) Adj. EBITDA margin (%) 4.0 15.3 1.3 11.9 13 1 Prese
Slide 14: Animal Nutrition & Health – cont’d
Animal Nutrition & Health – cont’d Q3 sales development Commentary Q3 €978m Global animal protein consumption remained resilient, driven by €823m poultry (3)% (4)% (9)% Demand in China stabilized, with slower recovery than expected Ongoing destocking of animal protein resulted in an imbalance
Slide 15: Outlook for FY 2023: Adj. EBITDA around €1,800m
Outlook for FY 2023 €2,275m around €1,800m dsm-firmenich expects on a pro forma basis: Adj. EBITDA 2023 around €1,800m Which includes an estimated negative vitamin effect of about €500m as well as a negative FX effect of about €90m Pro forma FX Vitamin Organic Pro forma Adj. EBITDA impact¹ performan
Slide 16: FY 2023 estimated Core Adj. EBITDA – Core Adj. EPS bridge
FY 2023 estimated Core Adj. EBITDA – Core Adj. EPS bridge1 Commentary Adj. EBITDA guidance around €1,800m • FY 2023 Income tax on Core Adj. Net Profit calculation is estimated -/- D&A (adjusted for around €290m PPA) around €940m -/- at around 26% = Core Adj. EBIT around €860m • For IFRS purposes, ex
Slide 17: Overview of Net Debt estimate – Bridge H1 2023 to year-end 2023
Overview of Net Debt estimate – Bridge H1 2023 to year-end 2023 See more details in Annex Commentary €bn • H2 Adj. Net Operating Free Cash flow 3.1 assuming 0,6 ✓ FY 2023 Adj. EBITDA of around €1,800m 0,1 2.5 0,2 ✓ FY 2023 CAPEX of around €bn 0,2 €750m 0,1 0,4 • APM Merger + Vitamin program 1,8 0,5
Slide 18: Vitamin transformation and €200m cost reduction program well under way
Vitamin transformation and €200m cost reduction program well under way New separate vitamin unit Vitamin B6 plant Xinghuo Simpler, more responsive Inventories reduced closed ‘go-to-market’ model through extended Vitamin Transformation production shut-downs Program Director directly Vitam
Slide 19: Synergies will drive substantial value creation
Synergies will drive substantial value creation Revenue synergy breakdown Substantial Value Creation ~€500m Sales Revenue 60% Taste, Texture & Health synergies ~ 50% of total Adj. EBITDA synergies 25% Health, Nutrition & Care Cost synergies ~ 50% of total Adj. EBITDA synergies 15% Perfumery & Beauty
Slide 20: Early signs of traction in cross-selling and developing new joint concepts
Early signs of traction in cross-selling and developing new joint concepts Nutrimilk Granola recovery clusters Spark’n Zing Energy-drink with plant-based Plant-based snack for muscle Strawberry flavored immunity- sweetener reducing sugar content recovery due to fortification with supporting milk dri
Slide 21: Strong, sustainable and profitable future ahead
Strong, sustainable and profitable future ahead Perfumery Taste, Texture Health Nutrition Animal Nutrition & Beauty & Health & Care & Health Performed well Resilient performance and Weak performance Weak performance in executing on integration exceptionally challenging environment ✓ Innovation pipel
Slide 22: Executing in a challenging near-term environment
Executing in a challenging near-term environment 1 2 3 4 Portfolio review Strong future Macro Micro across segments ahead 2 Operating in a tough Own actions to Strengthen Confidence in environment with no improve short-term portfolio mid-term targets inflection yet performance • Weakness in China •
Slide 23: Bridge towards targeted mid-term Adj. EBITDA margin (%)
Bridge towards targeted mid-term Adj. EBITDA margin (%) ~2-3% ~22%-23% ~2% Strengthen ~2% Cost synergies portfolio Portfolio review across ~2% ~€175m Vitamin segments Topline synergies ~14% Normalizing transformation Innovation pipeline ~€200m (e.g. Bovaer®) macro China, vitamins, restocking, deflat
Slide 24: Forward-looking statements disclaimer
This presentation may contain forward-looking statements with respect to dsm-firmenich’s future 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 t
Slide 25: Annex
Annex
Slide 26: H2 Cash Flow and Net Debt projection based on Adj. EBITDA outlook guidance
Secret H2 Cash Flow and Net Debt projection based on Adj. EBITDA outlook guidance IFRS Net Debt end of H1 2023 €1.8bn1 Adj. Gross Operating Free Cash Flow €0.6bn Operating cash generation (Adj. EBITDA, OWC, CAPEX) - Income Tax (€0.1bn) Adj. Net Operating Free Cash Flow €0.5bn - APM (merger costs, in
Slide 27: We bring progress to life
We bring progress to life™ dsm-firmenich eee