The perfumery and beauty division of dsm-firmenich is resilient to the market effects that have negatively affected the company's results in the last quarter.
CEO Dimitri de Vreeze explained that they are working on a series of internal actions to improve the company's financial and economic ecosystem: "We are driving from the board of directors a series of self-measures and we have prioritised above all our cash flow, which is key for us. We also remain focused on the successful integration of the merger and on achieving positive synergies," he said in the same press release issued by the company.
The company wanted to highlight the good performance of the Perfumery and Beauty business area and explained that, although sales were slightly down compared to last year, this decrease is practically imperceptible.
In global terms, the company recorded an organic decline in sales of 7%. In terms of EBITDA, the decline was sharper. In total, it was 32% less than in the same period of the previous year, which means a decrease of a margin of 400 basis points.
dsm-firmenich highlights the strong performance and results of Perfumery & Beauty, which achieved organic sales growth of 2% excluding the 2% negative impact of the closure of the Pinova plant in the US state of Georgia. These results were driven by price growth of 3% across all segments, offset by lower volumes in Ingredients, which experienced higher destocking and weaker than usual demand.he prices of 3% in all the segments that has been compensated by lower volumes in Ingredients, that has experienced a greater reduction of existences and a feebler demand of the usual.
Fine fragrances again performed well in a previous difficult comparable period. Consumer fragrances recorded strong growth, with very good volumes and prices, reflecting improved business momentum. Following the reduction in production in recent years due to COVID-19, customers are increasingly reformulating existing products with more innovative fragrances to develop superior consumer products. In the ingredients sector, destocking and weak demand continued, especially in industrial supply. Personal Care continued to perform well.