Firmenich's adj profit jumps 11% in last year as standalone company (updated)
05/08/2022 07:08
(Adds details on cash flow, agreed DSM transaction)
FRANKFURT, Aug 5 (Reuters) - Swiss flavours and scents maker
Firmenich, which agreed to combine with DSM DSMN.AS , reported
a nearly 11% jump in adjusted annual earnings on Friday, helped
by market share gains in fine fragrance and strong demand for
its food ingredients.
Full-year earnings before interest, taxes, depreciation and
amortisation (EBITDA), adjusted for one-offs, rose to 905
million Swiss francs ($946.26 million) for the full year ended
June 30, the family-controlled company said in a statement.
Shaky supply chains prompted it to keep higher safety stocks
for raw materials, resulting in a 5.9% decline in adjusted free
cash flow, also burdened by cost inflation.
Dutch specialty chemicals maker DSM in May struck
back-to-back deals to sell its engineering plastics division and
to combine with Firmenich to focus on the fast growing food,
fragrance and health products markets. urn:newsml:reuters.com:*:nL1N2XN07F
DSM, whose leadership team will also head the combined
group, this week reiterated its full-year profit guidance for
its core business areas health, nutrition and
bioscience. urn:newsml:reuters.com:*:nL8N2ZE0UE
DSM's adjusted EBITDA is still projected to grow by a
"high-single digit" percentage.
Under the merger deal, which is expected to be wrapped up
during the first half of next year, DSM shareholders will take a
65.5% stake in the combined group, while the family behind
unlisted Firmenich will receive a 34.5% stake plus 3.5 billion
euros ($3.58 billion) in cash.
($1 = 0.9564 Swiss francs)
($1 = 0.9773 euros)
(Reporting by Ludwig Burger, editing by Rachel More and Rashmi
Aich)
((ludwig.burger@thomsonreuters.com; +49 30 220133634;))