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dsm-firmenich reports full year 2023 results

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KAISERAUGST, Switzerland and HEERLEN, Netherlands, Feb. 15, 2024 /PRNewswire/ —

Management Report

2023 highlights

Successful creation of dsm-firmenich with integration well ahead of planMerger-related cost and sales synergies gaining tractionAnimal Nutrition & Health to be separated from the GroupSolid performance across the company, significantly impacted by unprecedented low vitamin pricesGood operating cash flow driven by a strong performance in the second halfStable dividend of €2.50 proposedSynergies and the vitamin transformation programs will deliver a significant earnings step-up in 2024 and beyondOutlook 2024: Adjusted EBITDA of at least €1.9 billion

Key figures

in € millions

Pro forma
FY 2023¹

Pro forma
FY 2022¹

% Change

Actual
Q4 2023

Pro forma
Q4 2022¹

% Change

Sales

12,310

13,238

(7)

3,112

3,295

(6)

Organic sales growth (%)

(5)

(3)

Adj. EBITDA

1,777

2,275

(22)

439

499

(12)

Adj. EBITDA margin (%)

14.4

17.2

14.1

15.1

Core adj. net profit

555

1,013

(45)

1 Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred on January 1, 2022. The pro forma figures represent the results from continuing operations – please also refer to the section Definitions.

 

Key figures on an IFRS basis2

in € millions

FY 2023

FY 2022

% Change

Sales

10,627

8,390

27

Net profit from continuing operations

(636)

475

(234)

Net profit (total group)

2,153

1,715

26

2 Represents the figures on an IFRS basis, including the Firmenich results as of the merger date May 8, 2023.

Dimitri de Vreeze, CEO, commented: “We are proud that the company is already operating seamlessly with integration well ahead of plan, including the development of a common culture, as demonstrated in our recent employee engagement survey. Our employees have done a truly amazing job building momentum, positioning dsm-firmenich as a world leader in nutrition, health and beauty.

In light of the unprecedented conditions with very low vitamin prices and a continued destocking cycle, we took a number of immediate and effective actions. We accelerated our plans for driving through additional self-help measures and advanced the review of all our business segments. This led us to the initiation of a process to separate out the Animal Nutrition & Health business from the Group which we announced today. This should strongly reduce our exposure to vitamins earnings volatility and reduce our capital intensity in line with our long-term strategy. We believe that the full potential of the ANH business could be best realized through a different ownership structure.

Supported by our exciting innovation pipeline, all these actions would help us to prioritize and accelerate the company’s nutrition, health and beauty high-growth and higher-margin businesses, all of which is reflected in our mid-term financial targets.”

Outlook 2024

As the global political and economic environment remains uncertain, and given that it is early in the year, we feel it prudent to base our full year outlook for the entire company only on those elements which are under our control, namely a €200 million step-up in Adjusted EBITDA from a combination of synergy delivery and the vitamin transformation program. Considering that the full negative vitamin effect emerged only in Q2 2023, the effective Adjusted EBITDA run-rate in the period Q2-Q4 2023 on an annualized basis was about €1.7 billion, the company estimates for FY 2024 Adjusted EBITDA of at least €1.9 billion.

Strategy

The merger of DSM and Firmenich created a world-leader in nutrition, health and beauty, through which its highly integrated portfolio of nutritional, natural and renewable ingredients, together with complementary science capabilities and technologies, will deliver superior innovation-led growth.

By creatively applying proven science and drawing on data-driven innovation capabilities as well as exceptional standards of operational excellence, dsm-firmenich seeks to tackle the tension between what society needs, what people individually want, and what the planet demands in the areas of nutrition, health and beauty. By working closely together with customers to create what is essential for life as well as desirable for consumers yet simultaneously more sustainable for the planet, dsm-firmenich is poised to bring progress to life for billions of people around the world.

dsm-firmenich is a purpose-led company where people and planet as well as financial success are at the core of its strategy that is aimed at further enhancing its positive impact in the world, continually raising the bar to help tackle climate change, protect nature, and care for people all along the value chain.

Delivering synergies through integration

dsm-firmenich is on track to achieve its target synergies of approximately €350 million Adjusted EBITDA per year. Around half of this is expected to come from cost efficiencies, with the full run rate achieved by the end of year 3. Initial benefits of about €15 million were delivered in Q4. The remaining synergies are expected from incremental revenues of €500 million, generated by an acceleration of innovation with customers. There has been good early progress and the full run rate is still expected by the end of year 4. These revenue synergies are driven by complementary capabilities and realized in the three business units with the strongest strategic adjacency – Perfumery & Beauty (P&B); Taste, Texture & Health (TTH); and Health, Nutrition & Care (HNC) – with roughly the following balance:

60% in TTH business unit25% in HNC business unit15% in P&B business unit

Overall, we expect to see an Adjusted EBITDA contribution of about €100 million in 2024, coming mainly from cost synergies.

Separation of Animal Nutrition & Health from the Group

The Company initiates a process to carve-out and separate out the Animal Nutrition & Health (ANH) business from the Group. Full focus on nutrition, health, and beauty would enable dsm-firmenich to better drive superior innovation-led growth. Separating out Animal Nutrition & Health from the Group would minimize dsm-firmenich’s exposure to vitamins earnings volatility and reduce capital intensity in line with its long-term strategy. The Company believes that the full potential of the ANH business could be best realized through a different ownership structure for which all potential separation options will be considered. The Company would expect to be in a position to separate the business in the course of 2025.

Progressing the vitamin transformation program

In mid-2023 the company embarked on a major restructuring program in its vitamin activities to reduce costs and restore profitability. This program is expected to result in an estimated Adjusted EBITDA contribution of around €200 million per year with the full run rate to be reached by the end of 2024. These savings will be in addition to the previously announced €350 million Adjusted EBITDA synergies target. Neither of these targets will be disrupted by the separation of Animal Nutrition and Health.

dsm-firmenich has already made strong progress in executing the program through the closure of the Xinghuo vitamin B6 plant in China and shutting down the Jiangshan vitamin C production in China. The sales model now supports a ‘go-to-market’ approach which is simpler and more efficient in the current market environment.

In Q4 2023, the program generated an about €10 million savings contribution to Adjusted EBITDA. For 2024, dsm-firmenich expects to achieve an additional around €100 million Adjusted EBITDA contribution.

Stable dividend

At the Annual General Meeting on May 7, 2024, dsm-firmenich’s Board of Directors will propose a cash dividend of €2.50 per share for the financial year 2023.  

Key figures and indicators

in € millions

Pro forma
FY 2023¹

Pro forma
FY 2022¹

% Change

Actual
Q4 2023

Pro forma
Q4 2022¹

% Change

Net sales

12,310

13,238

(7)

3,112

3,295

(6)

P&B

3,709

3,792

(2)

914

916

(0)

TTH

3,038

3,174

(4)

768

806

(5)

HNC

2,270

2,418

(6)

581

587

(1)

ANH

3,227

3,784

(15)

833

971

(14)

Corporate

66

70

(6)

16

15

7

Adj. EBITDA 

1,777

2,275

(22)

439

499

(12)

P&B

783

748

5

192

166

16

TTH

556

549

1

133

137

(3)

HNC

389

533

(27)

94

121

(22)

ANH

128

524

(76)

32

95

(66)

Corporate

(79)

(79)

(12)

(20)

(40)

Adj. EBITDA margin (%)

14.4

17.2

14.1

15.1

P&B

21.1

19.7

21.0

18.1

TTH

18.3

17.3

17.3

17.0

HNC

17.1

22.0

16.2

20.6

ANH

4.0

13.8

3.8

9.8

Adj. EBIT

666

1,361

(51)

.

Core adj. EBIT

850

1,361

(38)

Core adj. net profit

555

1,013

(45)

.

Average number of shares (x millions)

265.1

264.5

Core adj. EPS

2.03

3.77

.

(Avg.) core capital employed

16,423

16,271

Core adj. ROCE (%)  

5.2

8.4

.

Operating working capital

3,872

4,021

Capital expenditures (cash)

734

775

Adj. gross operating free cash flow

999

918

1 Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred on January 1, 2022. The pro forma figures represent the results from continuing operations – please also refer to the section Definitions.

 

Key figures and indicators on an IFRS basis2

in € millions

FY 2023

FY 2022

% Change

Net sales

10,627

8,390

27

EBITDA

810

1,304

(38)

EBITDA margin (%)

7.6

15.5

EBIT

(497)

682

(173)

Net profit (total group)

2,153

1,715

Net EPS (total group)

9.14

9.80

.

Effective tax rate (%)

2.8

20.9

Net debt

(2,215)

(87)

Workforce (headcount)               

29,367

20,6823 

2 Represents the figures on an IFRS basis, including the Firmenich results as of the merger date May 8, 2023

3 Refers to total group, including discontinued operations.

 

dsm-firmenich FY 2023 and Q4

in € millions

Pro forma
FY 2023¹

Pro forma
FY 2022¹

% Change

Actual
Q4 2023

Pro forma
Q4 2022¹

% Change

Sales

12,310

13,238

(7)

3,112

3,295

(6)

Organic sales growth (%)

(5)

(3)

Adj. EBITDA

1,777

2,275

(22)

439

499

(12)

Adj. EBITDA margin (%)

14.4

17.2

14.1

15.1

1 Represents the figures on a pro forma basis, including the Firmenich results as if the merger had occurred on January 1, 2022. The pro forma figures represent the results from continuing operations – please also refer to the section Definitions.

FY 2023

Good performance in Perfumery & Beauty (P&B)Solid performance in Taste, Texture & Health (TTH)Weak performance in Animal Nutrition & Health (ANH), and Health, Nutrition & Care (HNC) on exceptionally low vitamin prices and persistent de-stocking

The results for the full year were impacted by a combination of unprecedented market dynamics that led to very low vitamin prices, together with a deep destocking cycle.

Adjusted EBITDA, significantly impacted by the vitamin effect and foreign exchange was 22% lower than in the prior year, resulting in a 280bps margin decline. This includes a negative vitamin effect which is estimated at about €500 million. Without this effect, the Adjusted EBITDA would have been in line with prior year, despite a negative foreign exchange effect of about €90 million.

Q4 2023

Market conditions broadly unchangedFirst contribution from self-help initiatives materializedStrong cash flow generation, driven by disciplined action on inventory management

P&B continued to perform well, against a soft prior year comparable period, with TTH remaining resilient. ANH and HNC continued to see the same unprecedented market conditions. The quarter was notable by strong cashflow generation owing to a greater focus on, in particular, improving working capital through inventory reduction, together with the first benefits of cost synergies being realized.

Adjusted EBITDA was down 12%, owing mainly to the ongoing vitamin effect and destocking. The negative vitamin effect was estimated around €120 million and negative foreign exchange effect was slightly more than €20 million. Without this negative vitamin effect, Adjusted EBITDA would have been 24% higher than reported, despite a 5% negative FX effect. The quarter saw the initial contribution from the integration synergies of about €15 million and, in addition, savings of around €10 million from the vitamin transformation program.

Note for editors:

The full text of the press release is available here.
The presentation to investors is available here.

Financial calendar

February 22, 2024: North American Investor Event in Princeton, USA
May 2, 2024: Q1 2024 trading update
May 7, 2024: Annual General Meeting
June 3, 2024: Capital Markets Day in Paris
July 30, 2024: H1 2024 financial results
October 31, 2024: Q3 2024 trading update

Additional information

Today dsm-firmenich will hold a webcast for investors and analysts at 9:00 am CET. Details on how to access this call can be found on the dsm-firmenich website, www.dsm-firmenich.com.

For more information

Media relations 
Ingvild Van Lysebetten
tel. +41 (0)79 833 72 52
e-mail media@dsm-firmenich.com

Investor relations
Dave Huizing
tel. +31 (0)45 578 2864
e-mail investors@dsm-firmenich.com

About dsm-firmenich

As innovators in nutrition, health, and beauty, dsm-firmenich reinvents, manufactures, and combines vital nutrients, flavors, and fragrances for the world’s growing population to thrive. With our comprehensive range of solutions, with natural and renewable ingredients and renowned science and technology capabilities, we work to create what is essential for life, desirable for consumers, and more sustainable for the planet. dsm-firmenich is a Swiss-Dutch company, listed on the Euronext Amsterdam, with operations in almost 60 countries and revenues of more than €12 billion. With a diverse, worldwide team of nearly 30,000 employees, we bring progress to life™ every day, everywhere, for billions of people.
www.dsm-firmenich.com

Forward-looking statements
This press release may contain forward-looking statements with respect to dsm-firmenich’s future (financial) 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 that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. dsm-firmenich has no obligation to update the statements contained in this press release, unless required by law. The English language version of this press release prevails over other language versions.

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YesWelder’s Firstess DP200: Redefining Welding for Everyone

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NEW YORK, Sept. 20, 2024 /PRNewswire/ — YesWelder has solidified its reputation as a leader in the welding industry with the introduction of its latest innovation—the Firstess DP200. This multi-process welding machine is designed to be accessible for both seasoned professionals and complete beginners, significantly lowering the barriers to entry for welding. Thanks to its intuitive design and user-friendly features, even those with no prior experience can get started with ease. These innovations have earned the DP200 widespread acclaim, with its success echoed in an outstanding crowdfunding campaign that shattered expectations.

Introducing the YesWelder Firstess DP200

The Firstess DP200 equipped with cutting-edge features like the YesWelder PulseFlex™ System and AdaptivePulse™ technology, with its 200A power output and dual voltage capability (120V/240V), the DP200 is adaptable to any environment, from home garages to professional workshops. The 7-inch screen provides optimal visibility, featuring adjustable brightness and multi-angle viewing for easy operation even in low-light conditions. These features, combined with its IntuiWeld™ UI, make the DP200 intuitive and user-friendly, whether you’re a beginner or an experienced welder.

Crowdfunding Success

The launch of the Firstess DP200 on Kickstarter has been a resounding success. From the moment it went live, the welding community rallied behind the campaign, drawn in by the machine’s powerful capabilities and competitive pricing. In just five hours, the DP200 crossed the $1 million mark in sales—a remarkable achievement that underscored the demand for high-quality, affordable welding equipment. The overwhelming response from backers demonstrates the growing excitement around the DP200 and its potential to transform the welding experience for a wider audience. As of today, the campaign has raised over $2.4 million.

YouTube Creators Amplify the Buzz

From seasoned welders to hobbyists, Many of these creators have shared in-depth reviews, tutorials, and demonstrations of the DP200, highlighting its impressive features and capabilities.YouTubers have praised the Firstess DP200 for its ease of use, versatility, and precision. The PulseFlex™ and AdaptivePulse™ technologies have been singled out for their ability to provide fine-tuned control, making even complex welding tasks more manageable. The intuitive interface and large display have also been widely appreciated, with creators noting how these features make the machine accessible to welders of all skill levels.

 

These reviews have not only showcased the DP200’s performance but have also played a crucial role in building trust and excitement around the product. For potential buyers, seeing real-world feedback from trusted influencers has reinforced the machine’s value and capabilities.

Community-Driven Development

The Firstess DP200 is more than just a welding machine—it’s a testament to YesWelder’s commitment to its community. From initial concept to final testing, the development of the DP200 was guided by real-world feedback from welders. This collaborative approach ensured that the machine addresses the actual needs of users. Many of its thoughtful, user-friendly features—such as software upgradability, the ability to store up to 50 custom parameter sets with detailed notes (MIG/MAG), and comprehensive accessory options—are direct responses to suggestions from the welding community.

This focus on user input ensures that the DP200 not only meets expectations but exceeds them, offering a solution that feels tailor-made for welders. YesWelder’s dedication to blending innovation with affordability sets it apart, making the DP200 a true game-changer for anyone looking for a versatile and reliable welding solution.
 The DP200 goes beyond being just a tool—it’s part of YesWelder’s vision to open up the world of welding to more people, making the craft accessible and enjoyable for everyone.

At YesWelder, we believe welding is more than a skill—it’s a way to create, to build, and to connect. By breaking down barriers, we’re inviting more people to experience the joy and satisfaction that welding brings. Whether you’re just getting started or ready to level up, the Firstess DP200 is here to help you take that next step. Ready to make your mark? Stay Cool, Weld Hot.

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Yardi Aspire LMS Introduces Self-Service Course Catalog to Enhance Client Experience

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New feature allows Aspire administrators to review and select Yardi-authored training courses directly to their university

SANTA BARBARA, Calif., Sept. 20, 2024 /PRNewswire/ — Yardi® Aspire is thrilled to introduce its self-service course catalog, a new feature that allows Aspire Plus and Aspire Premium clients to manage Yardi-authored training courses directly within their company university.

 

 

Now clients can review, search and manage, instantly copying courses from within their university. Allowing clients on-demand access to the catalog of courses streamlines the process of acquiring the content they need.

“The self-service catalog empowers our clients by removing the need to take time to create cases for content requests,” said Patty Evans, industry principal for Yardi Aspire. “They now have direct access to manage and add the training they need, when they need it, without added steps.”

Key benefits of the new self-service course catalog:

Enhanced catalog visibility: Clients can browse the full Aspire course catalog, accessing detailed descriptions, learning objectives and course durationsImmediate access to new courses: New and recently updated courses are instantly available, helping clients keep training programs currentAdvanced search filters: With options to search by roles, skills, keywords, tags and duration, clients can easily identify training content that addresses specific business needs or skill gapsEffortless Yardi software training integration: Aspire makes it simple to incorporate Yardi software training with new implementationsFull control over course status: Clients can customize course privacy settings during the copy process, ensuring the content is visible to the appropriate roles within their team

“We are always focused on evolving our platform to make life easier for our clients. This new feature puts them in control, making it faster and simpler to customize their training offerings,” Evans said.

With this self-service functionality, Aspire enables clients to gain instant access to vital training resources as they become available and as client needs arise. Contact us today to schedule a demo and explore the self-service catalog.

About Yardi

Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With 9,500 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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Asymbl, Inc. Announces Inclusion in Salesforce’s Agentforce Partner Network with Asymbl Recruiter Agent

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Customers can automate and stream staffing and recruitment workflows through Asymbl Recruiter Agent for Agentforce 

AUSTIN, Texas, Sept. 20, 2024 /PRNewswire/ — Asymbl, Inc. today announced they have joined Salesforce’s Agentforce Partner Network , a global ecosystem of partners building new third-party agents and agent actions for Agentforce accessible through the Salesforce AppExchange. With Asymbl’s Recruiter Agent, customers can leverage intelligence and automation to streamline the recruiter workflow for greater success, accelerating candidate identification, creating job descriptions effortlessly, scheduling interviews seamlessly, summarizing interview feedback, and optimizing speed to placement. By automating these time-consuming tasks, recruiters can focus on what they do best—building meaningful interactions with candidates and hiring managers, rather than being bogged down by administrative work.

Agentforce is a suite of autonomous AI agents designed to support humans by automating tasks across various industries, enhancing efficiency, and scaling operations. The Agentforce Partner Network enables Agentforce to plan, reason and perform tasks by integrating with a broad range of technology and data providers, enabling them to execute complex actions on behalf of users.

Asymbl’s agent action for Agentforce can be integrated into the customer’s existing Salesforce agents in Agent Builder or discovered on Salesforce AppExchange, the leading enterprise cloud marketplace.

With the announcement of the Agentforce Partner Network, businesses have access to more than 20 agents and agent actions, leveraging partners’ purpose-built technology and domain expertise. Partner-built agents enable faster deployment of pre-built solutions, reducing both development time and costs, while extending the value of the tools businesses already rely on.

Customers can expedite time to placement and optimize the recruiter workflow through Asymbl Recruiter Agent’s agent actions. Key features include:

Intelligent Candidate Identification: Powered by Agentforce and Salesforce Data Cloud, Asymbl Recruiter Agent leverages results from partner applications for traditional resume matching and goes further by analyzing interactional data from an extensive range of data points and past interactions with candidates and hiring managers to rapidly identify the best-fit candidates.

Effortless Job Description Creation: Quickly generate, refine, and share job descriptions based on existing data and hiring manager preferences, saving valuable time that would otherwise be spent drafting descriptions manually.

Autonomous Interview Scheduling: Schedule interviews with candidates seamlessly with real-time availability, minimizing the usual back-and-forth involved in coordinating schedules.

Comprehensive Interview Feedback Summaries: Generate detailed summaries from the interviewer’s feedback in seconds, enabling recruiters to make faster and more informed hiring decisions.

With these capabilities, Asymbl Recruiter Agent’s agent actions accelerate the entire recruiter workflow, making it more efficient and effective for staffing firms and corporate recruiters looking to optimize their workflows and achieve faster placements.

“I’ve been part of the Salesforce ecosystem for 20 years and have worked in the talent management, staffing, and recruitment industries for just about as long. I’ve never experienced a more exciting moment for growth, innovation, and immediate impact,” said Brandon Metcalf, CEO and Founder of Asymbl, Inc. “The energy around AI today, coupled with the groundbreaking advancements and impact we’re achieving through our collaboration with Salesforce, is driving immediate and transformative change in staffing and recruiting. With Agentforce, we are moving into the third wave of AI where intelligent agents are not just a concept—they are here, and they are reshaping how we work and succeed.”

“By partnering with Asymbl, we gain the flexibility to adapt and lead in a competitive market, ensuring our strategies are both innovative and future-proof,” said Rob Lowry, Chief Delivery Officer at Apex Systems. “The collaboration between Asymbl and Salesforce has been important to Apex. Asymbl being an initial partner in the Agentforce Partner Network highlights their commitment to pushing the boundaries of recruitment technology. We’re excited about the Asymbl Recruiter Agent and its potential to simplify recruitment, accelerate hiring decisions, and enhance our ability to deliver value to clients.”

“Salesforce’s leading partner ecosystem is at the forefront of the AI enterprise, where humans and AI come together through autonomous Agents and Agent Actions,” said Brian Landsman, EVP, Global Technology Partners, Salesforce. “These latest innovations boost scale, efficiency, and satisfaction across a variety of use cases, while enabling Agents to execute complex tasks across an organization’s technology stack. We look forward to seeing our customers take full advantage of these and experience better business outcomes.”

Asymbl Recruiter Agent is available to be previewed here.    

Additional Resources

Follow Asymbl, Inc. on LinkedInFollow Salesforce on LinkedIn and XCheck out the AppExchange Agentforce CollectionLearn more about Salesforce unveiling of Agentforce

Salesforce, Salesforce Agentforce Partner Network, Agentforce, Salesforce Data Cloud and others are among the trademarks of Salesforce, inc.

About Asymbl, Inc.

Asymbl, Inc. is an innovative technology company within the Salesforce ecosystem, driving transformative growth through its two core brands. Asymbldelivers cutting-edge staffing and talent management software to optimize recruitment workflows, while Blueprint Advisory provides strategic advisory, consulting, and managed services to help organizations navigate digital transformation and maximize their Salesforce investments.

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