DSM-Firmenich AG reported a stronger-than-expected start to 2026, with first-quarter organic sales rising 4% - above analyst expectations of 1.6% and ahead of an internal estimate of 1.3%. The company recorded adjusted EBITDA of €434 million, marginally higher than the €428 million estimate and the €431 million consensus figure.
Group revenue for the quarter came in at €2,276 million. Management attributed the top-line to flat pricing and a 4% increase in volumes, while foreign exchange movements reduced reported sales by 6%.
Division performance
The Perfumery & Beauty division led growth, delivering €967 million in sales and 8% organic expansion. The company highlighted particularly strong results in fine fragrance, noting a powerful finish to the quarter driven by customer decisions to bring orders forward amid heightened uncertainty. Fine fragrance posted strong double-digit like-for-like sales gains, consumer fragrances grew by high single digits, and fragrance ingredients rose by low single digits.
Taste, Texture & Health generated €791 million in sales with 2% organic growth. The division benefited from revenue synergies despite soft market conditions and cautious consumer behavior. Regional performance was mixed - Europe and North America showed solid trends while Asia and Latin America remained weak. The division also experienced a 1% negative volume impact attributable to Bovaer.
Health, Nutrition & Care recorded €497 million in sales and 4% organic growth. This division delivered adjusted EBITDA of €96 million, exceeding estimates by 6%. Management pointed to healthy biomedical growth and robust early life nutrition performance driven by HMOs as contributors to the division's strength.
Guidance and corporate action
DSM-Firmenich maintained its full-year 2026 guidance range, reiterating expectations for organic sales growth of 2% to 4% and an adjusted EBITDA margin of approximately 20%. The company also announced plans to establish a dual listing on the SIX Swiss Exchange, which is expected to become effective on May 21, 2026.
Overall, the quarter combined solid underlying volume growth and margin resilience with a notable negative impact from currency movements. The company retained its medium-term targets while navigating mixed regional demand across its business lines.