Press Release

Heerlen, NL, 02 May 2023 07:00 CET

As of 28 April 2023, DSM-Firmenich AG holds 96.1% of the ordinary shares in DSM N.V. On 8 May 2023, Firmenich International SA will become part of DSM-Firmenich AG through the Firmenich Contribution (as defined in the Offering Circular dated 22 November 2022). Until the delisting of the DSM ordinary shares from Euronext Amsterdam, DSM N.V. remains subject to the disclosure requirements under applicable law and reports today a Trading Update on the first quarter results of 2023.

Highlights^1,2

Continuing Operations:

• Health, Nutrition & Bioscience delivered sales of €1,875m, with organic sales down 7% and Adjusted EBITDA of €302m, down 23%
  • Animal Nutrition & Health experienced exceptional conditions with continued low vitamin prices on higher input costs and soft demand in China 
  • Health, Nutrition & Care and Food & Beverage maintained healthy margins through pricing initiatives and prioritizing profitability over volume

Key figures-continuing Operations

Co-CEO statement

Geraldine Matchett and Dimitri de Vreeze, Co-CEOs commented: “Our first quarter results are reported against a comparable period that had not yet been impacted by the high rate of global inflation, the effects of which remained elevated into 2023. Low vitamin prices, especially vitamin A, have also remained, despite resilient end-user demand. In this environment our focus across businesses remains on pricing actions and prioritising profitability over sales volumes. This approach has supported our margins, which improved sequentially into the first quarter of this year.

We do not foresee a significant improvement in these conditions in the second quarter. However, we anticipate a stronger second half of the year across all businesses as inflationary pressure eases, as volumes recover, especially in China, and vitamin prices start to normalize.

Looking to the future, we are very pleased at the overwhelmingly positive response to the exchange of DSM shares for DSM-Firmenich shares. DSM-Firmenich stock has been trading on Euronext Amsterdam as of 18 April and with the contribution of Firmenich on 8 May, we will have completed our merger, creating the leading global creation and innovation partner in nutrition, health, and beauty.”

Outlook 2023

With the imminent completion of the merger, once DSM and Firmenich’s activities have been consolidated and the combined business plan approved by the DSM-Firmenich Board, it is intended that DSM-Firmenich will provide an outlook for the remainder of 2023 at the publication of its Half Year results on 2 August 2023.

The complete version of this press release can be found here.

_{1. Continuing Operations reflects the results of DSM’s Health, Nutrition & Bioscience and Corporate Activities as of 1 January 2022. DSM’s Materials businesses have been reclassified to Discontinued Operations effective as of 1 January 2022.}

_{2.  Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects results from usual operations. Organic sales growth is the total impact of volume and price/mix.}