Accounting policy
An associate is an entity over which dsm-firmenich has significant influence but no control or joint control, usually evidenced by a shareholding that entitles dsm-firmenich to between 20% and 50% of the voting rights.
A joint venture is an entity over which dsm-firmenich has joint control and is entitled to its share of the net assets and liabilities.
Investments in associates and joint ventures are initially recognized at cost, including transaction costs. Subsequent to initial recognition, these investments are accounted for by the equity method, which involves recognition in the income statement of dsm-firmenich’s share of the associate’s or joint venture’s profit or loss for the year determined in accordance with the accounting policies of dsm-firmenich. Any other results at dsm-firmenich in relation to associated companies are recognized under Other results related to associates and joint ventures. dsm-firmenich’s interest in an associate or joint venture is carried in the balance sheet at its share in the net assets of the associate or joint venture together with goodwill paid on acquisition, less any impairment loss. When dsm-firmenich’s share in the loss of an associate or joint venture exceeds the carrying amount of that entity, the carrying amount is reduced to zero. No further losses are recognized unless dsm-firmenich has responsibility for obligations relating to the entity.
Associates and joint ventures
The table opposite presents, in aggregate, the carrying amount and share of profit and loss and other movements of the associates and joint ventures.The total share of profit (loss) of associates and joint ventures in 2025 amounting to a loss of €97 million is mainly the result of the losses of KD Pharma and Olatein. A loss of €62 million was recognized in the share in KD Pharma of which €26 million is due to impairment. The share of the loss of Olatein amounting to €46 million consists of a share in the operating loss of €15 million and an impairment of €31 million. Both impairments are recognized as APM adjustments for a total of €57 million (see also Note 2 Alternative performance measures). Disposals of €24 million relates to the sale of 15% of the 25%-share held by dsm-firmenich in the associate DRT-Anthea. The equity share of the associates which are in the perimeter of the discontinued operations amounting to €25 million is reclassified to held for sale. It mainly consists of the share in Nenter Shishou (€24 million).
|
|
2025 |
|
2024 |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
KD Pharma |
|
Essential Labs |
|
Other associates |
|
Olatein |
|
Other JVs |
|
Total |
|
Total |
Equity share |
|
29% |
|
49% |
|
|
|
50% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1 |
|
159 |
|
48 |
|
96 |
|
27 |
|
12 |
|
342 |
|
130 |
- Share of profit (loss) |
|
(62) |
|
2 |
|
9 |
|
(46) |
|
– |
|
(97) |
|
(10) |
- Capital payments |
|
– |
|
– |
|
1 |
|
19 |
|
– |
|
20 |
|
17 |
- Dividends received |
|
– |
|
(1) |
|
(3) |
|
– |
|
– |
|
(4) |
|
(9) |
- Acquisitions |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
- Disposals |
|
– |
|
– |
|
(24) |
|
– |
|
– |
|
(24) |
|
– |
- Reclassification to held for sale |
|
– |
|
– |
|
(25) |
|
– |
|
– |
|
(25) |
|
– |
- Other consolidation change |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
208 |
- Exchange differences |
|
(1) |
|
(6) |
|
(1) |
|
– |
|
(1) |
|
(9) |
|
6 |
- Other changes |
|
– |
|
– |
|
– |
|
– |
|
(4) |
|
(4) |
|
– |
Balance at December 31 |
|
96 |
|
43 |
|
53 |
|
– |
|
7 |
|
199 |
|
342 |
|
|
KD Pharma |
|
Essential Labs |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
20251 |
|
2024 |
|
2025 |
|
2024 |
||||
Current assets |
|
264 |
|
325 |
|
25 |
|
19 |
||||
Non-current assets |
|
263 |
|
395 |
|
7 |
|
14 |
||||
Current liabilities |
|
66 |
|
71 |
|
5 |
|
2 |
||||
Non-current liabilities |
|
257 |
|
249 |
|
5 |
|
7 |
||||
Net assets (100% basis) |
|
204 |
|
400 |
|
22 |
|
24 |
||||
of which Non-controlling interest |
|
– |
|
1 |
|
– |
|
– |
||||
Attributable to investee’s shareholders |
|
204 |
|
399 |
|
22 |
|
24 |
||||
|
|
|
|
|
|
|
|
|
||||
Summarized statement of profit or loss |
|
|
|
|
|
|
|
|
||||
Revenue (net sales) |
|
256 |
|
31 |
|
67 |
|
72 |
||||
Profit (loss) for the year (continuing operations) |
|
(199) |
|
(9) |
|
4 |
|
7 |
||||
Other comprehensive income |
|
– |
|
– |
|
– |
|
– |
||||
Total comprehensive income |
|
(199) |
|
(9) |
|
4 |
|
7 |
||||
of which Non-controlling interest |
|
– |
|
– |
|
– |
|
– |
||||
Attributable to investee’s shareholders |
|
(199) |
|
(9) |
|
4 |
|
7 |
||||
|
||||||||||||
Joint operations
The operations Veramaris and Avansya are accounted for in accordance with IFRS 11 for joint operations. dsm-firmenich therefore recognizes their amounts for the assets, liabilities, revenues and expenses in accordance with the contractual entitlement and obligations of dsm-firmenich, see also Note 1 General information.