Accounting policy
dsm-firmenich has segmented its operations by business activity from which revenues are earned and expenses incurred.
These operating results are regularly reviewed by the Executive Committee (ExCo), dsm-firmenich’s Chief Operating Decision Maker (CODM), to make decisions about resources to be allocated to the operating segments and assess their performance. dsm-firmenich uses Adjusted EBITDA as the main indicator to evaluate the consolidated performance as well as the performance per operating segment. Discrete financial information is available for each identified operating segment.
The same accounting policies that are applied for the Consolidated Financial Statements of dsm-firmenich are also applied for the operating segments. Prices for transactions between segments are determined on an arm’s length basis at market-based prices.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can reasonably and consistently be allocated. Interest income, interest expense, and income tax expense or income are not allocated to segments as these amounts are not included in the measure of segment profit or loss reviewed by the ExCo, or otherwise regularly provided to the ExCo. Selected information on a country and regional basis is provided in addition to the information about operating segments.
Operating segments
dsm-firmenich is organized into four distinct Business Units:
- Perfumery & Beauty (P&B) creates premium scents with proven benefits, using the best and largest palette of natural, synthetic, and biotech ingredients.
- Taste, Texture & Health (TTH) helps customers create food and beverage products that are delicious, nutritious, affordable, and sustainable – providing enjoyment and nourishment for consumers, and better health for People and Planet.
- Health, Nutrition & Care (HNC) provides people a way to look after their health by adding critical nutrients to their diets, driving medical innovation forward, speeding up recovery, and enhancing quality of life.
- Animal Nutrition & Health (ANH) delivers healthy animal proteins efficiently and sustainably, harnessing power of data to make animal farming practices more sustainable, productive, and transparent.
The Business Units are created with clear end-market orientation and large addressable markets. They are clustered in coherent product and market combinations with similar customers and distribution channels, and their operating results are regularly reviewed by the ExCo. Therefore, these Business Units have been identified as the reportable operating segments of dsm-firmenich.
Any consolidated activities outside the four reportable operating segments above are reported as the reportable segment ‘Corporate Activities’. These consist of corporate operating and service activities that are not further allocated to the operating segments. dsm-firmenich does not have a single external customer that represents 10% or more of total sales.
|
|
Switzerland |
|
Netherlands |
|
Rest of EMEA |
|
North America |
|
Latin America |
|
China |
|
Rest of Asia |
|
Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (by destination) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In € millions |
|
214 |
|
420 |
|
3,938 |
|
2,928 |
|
1,887 |
|
1,096 |
|
2,316 |
|
12,799 |
In % |
|
2 |
|
3 |
|
30 |
|
23 |
|
15 |
|
9 |
|
18 |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workforce at period-end (headcount) |
|
3,734 |
|
1,776 |
|
8,134 |
|
4,155 |
|
3,565 |
|
3,365 |
|
3,485 |
|
28,214 |
Intangible assets and property, plant and equipment at year-end (carrying amount) |
|
14,946 |
|
1,618 |
|
3,220 |
|
2,689 |
|
428 |
|
603 |
|
299 |
|
23,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales (by destination) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In € millions |
|
204 |
|
424 |
|
3,103 |
|
2,420 |
|
1,653 |
|
997 |
|
1,826 |
|
10,627 |
In % |
|
2 |
|
4 |
|
29 |
|
23 |
|
16 |
|
9 |
|
17 |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Workforce at year-end (headcount) |
|
3,647 |
|
1,783 |
|
7,953 |
|
4,264 |
|
3,617 |
|
4,664 |
|
3,373 |
|
29,301 |
Intangible assets and property, plant and equipment at year-end (carrying amount) |
|
15,474 |
|
1,665 |
|
3,147 |
|
2,600 |
|
506 |
|
612 |
|
283 |
|
24,287 |
|
|
Perfumery & Beauty |
|
Taste, Texture & Health |
|
Health, Nutrition & Care |
|
Animal Nutrition & Health |
|
Corporate Activities |
|
Total continuing operations |
|
Discontinued operations |
|
TOTAL |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales |
|
3,964 |
|
3,245 |
|
2,214 |
|
3,324 |
|
52 |
|
12,799 |
|
– |
|
12,799 |
||||||
Adjusted EBITDA1 |
|
882 |
|
615 |
|
371 |
|
343 |
|
(93) |
|
2,118 |
|
– |
|
2,118 |
||||||
EBITDA |
|
877 |
|
671 |
|
353 |
|
301 |
|
(211) |
|
1,991 |
|
– |
|
1,991 |
||||||
Adjusted operating profit1 |
|
491 |
|
279 |
|
188 |
|
124 |
|
(156) |
|
926 |
|
– |
|
926 |
||||||
Operating profit |
|
486 |
|
262 |
|
7 |
|
81 |
|
(275) |
|
561 |
|
– |
|
561 |
||||||
Capital expenditures |
|
189 |
|
161 |
|
127 |
|
287 |
|
– |
|
764 |
|
– |
|
764 |
||||||
Adjusted EBITDA margin (in %) |
|
22.3 |
|
19.0 |
|
16.8 |
|
10.3 |
|
|
|
16.5 |
|
– |
|
16.5 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales |
|
2,619 |
|
2,471 |
|
2,246 |
|
3,223 |
|
68 |
|
10,627 |
|
388 |
|
11,015 |
||||||
Adjusted EBITDA1 |
|
579 |
|
437 |
|
377 |
|
128 |
|
(78) |
|
1,443 |
|
(2) |
|
1,441 |
||||||
EBITDA |
|
417 |
|
361 |
|
2772 |
|
482 |
|
(293) |
|
810 |
|
2,827 |
|
3,637 |
||||||
Adjusted operating profit1 |
|
317 |
|
169 |
|
158 |
|
(80) |
|
(134) |
|
430 |
|
(2) |
|
428 |
||||||
Operating profit |
|
154 |
|
93 |
|
(101)2 |
|
(285)2 |
|
(358) |
|
(497) |
|
2,827 |
|
2,330 |
||||||
Capital expenditures |
|
112 |
|
86 |
|
129 |
|
252 |
|
121 |
|
700 |
|
5 |
|
705 |
||||||
Adjusted EBITDA margin (in %) |
|
22.1 |
|
17.7 |
|
16.8 |
|
4.0 |
|
|
|
13.6 |
|
(0.5) |
|
13.1 |
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