dsm-firmenich, a company specialising in nutrition, health and beauty, announces today the initiation of a process to carve-out and separate out the Animal Nutrition & Health (“ANH”) business from the Group.
ANH is driven by different dynamics to the rest of the Group, which has become even more apparent with the unprecedented challenges in the vitamins market.
The Company believes that the full potential of the ANH business could be best realised 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.
Dimitri de Vreeze, CEO of dsm-firmenich, commented: “ANH is a business that we are proud of. This is a difficult moment, but we strongly believe that a separation would be better for both businesses and their employees, and ultimately generate better value for all our stakeholders.”
By fully focusing on Perfumery & Beauty (P&B); Taste, Texture & Health (TTH); and Health, Nutrition & Care (HNC), the Company can further develop its complementary scientific research, technologies and manufacturing excellence.
Full focus on these businesses is expected to enhance their commercial potential and synergies, supporting an attractive and consistent growth outlook alongside robust margins.”
The global vitamins market has experienced a prolonged downturn which has been driven primarily by unprecedented cyclical pressure on vitamin prices in the animal markets. This has been partly mitigated by strong outcomes from the performance solutions business which provides important tools for farmers to deliver feed efficiency yield management.
By separating ANH, dsm-firmenich’s exposure to future vitamin earnings volatility would be reduced.
As part of the vitamin transformation programme announced in June 2023, the Company continues to make significant progress on its cost reduction plan including plant closures, route-to-market simplification and optimised service levels.
The Company remains confident in realising a contribution of €100 million in adjusted EBITDA in 2024 and the full benefit of €200 million in 2025.
