Dsm-firmenich meets core profit forecasts aided by scent and beauty demand
Financial Performance and Market Drivers
First-Quarter Results Overview
May 6 (Reuters) - European chemical maker dsm-firmenich reported adjusted first-quarter core profit broadly in line with market expectations on Wednesday, supported by strong demand for its perfumery and beauty products.
The group's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were 434 million euros ($509 million), slightly above analysts' forecast of 431 million euros in a company-provided consensus.
EBITDA and Margin Analysis
Adjusted EBITDA increased 4% on a like-for-like basis in the first quarter, but declined on a reported basis. The corresponding margin slipped to 19.1% from 19.7% a year earlier, reflecting negative currency effects and higher freight and energy costs, dsm-firmenich said.
Sales Performance and Portfolio Changes
Reported sales fell 3% on the year to 2.28 billion euros due to a currency impact and portfolio changes following the sale of the Agro Ingredients business.
Market Dynamics and Customer Behavior
The group also noted that some customers had brought forward orders toward the end of the quarter amid uncertainty around global supply chains linked to developments in the Middle East.
"We made a solid start to the year, with good (like-for-like) sales growth across all businesses while navigating a highly dynamic geopolitical and macroeconomic environment," CEO Dimitri de Vreeze said in a statement.
Industry-Wide Trends
A Reuters analysis of actions taken by around 175 companies globally in the first financial quarter shows that chemical players are among the hardest hit. Of the 27 actions tracked in the sector, just over half involved financial pressure, guidance cuts or price hikes in response to rising costs of fuel and other petrochemicals.
Currency Exchange Rate
($1 = 0.8525 euros)
(Reporting by Antonis Pothitos; editing by Milla Nissi-Prussak)
