dsm-firmenich Taste, Texture & Health growth accelerates as animal nutrition sale reshapes portfolio
Key takeaways
- Taste, Texture & Health delivered 4% LFL sales growth in H1, with growth accelerating to 6% in Q2.
- Beverages, baking, dairy, regional recovery, and Bovaer supported stronger second-quarter performance.
- dsm-firmenich’s Animal Nutrition & Health divestment sharpens its focus on nutrition, health, and beauty.
dsm-firmenich’s Taste, Texture & Health business accelerated in the second quarter of 2026, supported by beverages, baking, dairy, and revenue synergies. The ingredients supplier also expects to complete the divestment of its Animal Nutrition & Health business at the end of 2026
The Swiss group reported first-half sales of €4.66 billion (US$5.33 billion) from continuing operations, representing 5% like-for-like (LFL) growth. Adjusted EBITDA rose 7% on an LFL basis to €900 million (US$1.03 billion), although the reported figure edged below the prior-year total because of foreign exchange and M&A effects
The group maintained its 2026 outlook and now expects sales growth toward the upper end of its 2–4% target range
“We achieved good volume-led LFL growth in the first six months of the year across all businesses,” CEO Dimitri de Vreeze said. He added that the company’s action plan is targeting faster top-line growth, margin expansion, and disciplined cash and capital management
Taste, Texture & Health gains momentum in Q2
Taste, Texture & Health generated €1.63 billion (US$1.87 billion) in first-half sales, up 4% LFL, with revenue synergies contributing 1.5 percentage points. Adjusted EBITDA increased 3% LFL to €321 million (US$367.4 million). Its margin declined to 19.6% from 20.6%, reflecting a 60-basis-point foreign exchange headwind and higher costs
Second-quarter performance was stronger. The division’s sales reached €843 million (US$964.9 million), up 6% LFL, compared with 2% growth in the first quarter. Adjusted EBITDA advanced 8% LFL to €170 million (US$194.6 million), while the margin improved sequentially to 20.2% from 19.1%
Growth came from both Taste and Ingredients Solutions and was recorded across all regions. Latin America saw a strong recovery, while business conditions improved in Europe and North America. The company said North American demand also benefited from the FIFA World Cup
Beverages and baking delivered good growth, while sustained dairy demand supported enzymes and cultures. Revenue synergies contributed about 2 percentage points to quarterly growth, and Bovaer, dsm-firmenich’s methane-reducing feed ingredient, added about 1 percentage point
Bovaer was transferred from Animal Nutrition & Health into Taste, Texture & Health. Veramaris, the company’s algae-based omega-3 joint venture, was transferred into Health, Nutrition & Care. Both businesses are being retained by dsm-firmenich
Health, Nutrition & Care profitability rises
Health, Nutrition & Care recorded €1.04 billion (US$1.19 billion) in first-half sales, up 4% LFL. Adjusted EBITDA rose 15% LFL to €206 million (US$235.8 million), and its margin expanded to 19.9% from 18.8%
Early Life Nutrition led growth, supported by demand for human milk oligosaccharides and favorable conditions for arachidonic acid, while Biomedical also performed well. However, Dietary Supplements and i-Health continued to face cautious consumer spending, particularly in North America
Perfumery & Beauty, the group’s largest division, posted 7% LFL first-half sales growth to €1.95 billion (US$2.23 billion). Adjusted EBITDA increased 6% LFL to €424 million (US$485.3 million), with Fine Fragrances delivering double-digit growth
Animal Nutrition & Health moves out of continuing operations
Following the agreed sale of Animal Nutrition & Health to CVC Capital Partners, dsm-firmenich classified the divested business’ assets and liabilities as held for sale and reclassified its financial results to discontinued operations. Results from discontinued operations were substantially below the prior-year period, which included an exceptional contribution from temporarily high vitamin prices
Conditions improved in the second quarter as prices, demand, and efficiency measures strengthened profitability
The transaction values Animal Nutrition & Health at about €2.2 billion (US$2.52 billion), including an earnout of up to €500 million (US$572.3 million). dsm-firmenich will retain a 20% stake in each of the two businesses being created from the division. The deal is expected to close at the end of 2026
The company’s broader restructuring program, which includes eliminating stranded costs associated with the Animal Nutrition & Health transaction, could reduce about 1,000 positions over 18–24 months. dsm-firmenich expects the program to deliver €100 million (US$114.5 million) in cost savings
Combined with the 2025 sale of Feed Enzymes to Novonesis for €1.5 billion (US$1.72 billion), the wider animal nutrition exit carries an enterprise value of €3.7 billion (US$4.24 billion)
Following the announced divestment, dsm-firmenich reports continuing operations across three divisions spanning flavors and food ingredients, health and nutrition, and perfumery and beauty
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