DSM-Firmenich Earnings: In-Line EBITDA Delivery; Volume Growth for Fragrances Disappoints

We confirm our EUR 130 fair value estimate for wide-moat DSM-Firmenich after it reported first-quarter 2024 adjusted EBITDA of EUR 463 million, in line with the Vara consensus. This represents an 11% decrease compared with the same period last year, which was mainly attributed to ongoing challenging market conditions in vitamins. Still, management indicated that market momentum is improving and confirmed full-year EBITDA guidance of at least EUR 1.9 billion, which is broadly aligned with our forecast of full-year adjusted EBITDA of around EUR 2 billion.