Accounting policy
Revenue from contracts with customers is recognized by identifying the contract and its performance obligations as well as by determining and allocating the transaction price to these performance obligations. Net sales represent the invoice value less estimated rebates, cash discounts, and indirect taxes. As sales are generally made with a short-term credit term, the impact of elements of financing is limited.
The payment terms are determined per business segment on a customer basis. Generally, dsm-firmenich has neither specific obligations for returns or refunds, nor specific warranties or other related obligations.
Sale of goods
At dsm-firmenich, revenue related to the sale of goods is recognized in the income statement when the performance obligation is satisfied. This is at the point in time when transfer of control of the goods passes to the buyer. Fulfilment of the performance obligations related to goods sold is measured using the commercial shipment terms as an indicator of the transfer of control. Revenue recognized is measured at the fair value of the contractual transaction price allocated to the performance obligation that is satisfied.
Rendering of services
Income coming from the rendering of services is recognized when the service, i.e., the performance obligation, has been fulfilled. Fulfilment of the performance obligations for services rendered is identified according to the individual contract but generally takes place at the point in time when the service is provided. The revenue recognized is measured at the fair value of the contractual transaction price allocated to the performance obligation that is satisfied.
|
|
2025 |
|
2024 |
|---|---|---|---|---|
Goods sold |
|
8,903 |
|
8,896 |
Services rendered |
|
131 |
|
158 |
Total |
|
9,034 |
|
9,054 |
|
|
2025 |
|
2024 |
|---|---|---|---|---|
Perfumery & Beauty |
|
3,760 |
|
3,776 |
- Perfumery |
|
2,453 |
|
2,443 |
- Ingredients |
|
941 |
|
903 |
- Personal care |
|
366 |
|
430 |
|
|
|
|
|
Taste, Texture & Health |
|
3,146 |
|
3,109 |
- Taste |
|
1,858 |
|
1,872 |
- Ingredients solutions |
|
1,288 |
|
1,237 |
|
|
|
|
|
Health, Nutrition & Care |
|
2,102 |
|
2,117 |
- Dietary supplements and I-Health |
|
846 |
|
870 |
- Early life nutrition |
|
431 |
|
413 |
- Biomedical solutions |
|
207 |
|
208 |
- Other |
|
618 |
|
626 |
|
|
|
|
|
Corporate Activities |
|
26 |
|
52 |
|
|
|
|
|
Total |
|
9,034 |
|
9,054 |
Total costs
In 2025, total operating costs (the total costs included in operating profit) amounted to €8.3 billion, €0.2 billion lower than in 2024, when these costs stood at €8.5 billion.
Total operating costs in 2025 included Cost of sales amounting to €5.5 billion (2024: €5.5 billion); gross profit as a percentage of net sales remained 39% (2024: 39%).
|
|
2025 |
|
2024 |
|---|---|---|---|---|
Amortization of intangible assets |
|
545 |
|
556 |
Depreciation of property, plant and equipment owned |
|
264 |
|
293 |
Depreciation of right-of-use assets |
|
90 |
|
82 |
Impairment losses |
|
47 |
|
94 |
Total |
|
946 |
|
1,025 |
For impairment losses see Note 2 Alternative performance measures.
|
|
2025 |
|
2024 |
|---|---|---|---|---|
Release of provisions |
|
4 |
|
2 |
Gain on sale of assets and activities |
|
43 |
|
23 |
Insurance benefits |
|
39 |
|
20 |
Earn-out payments and other settlements |
|
– |
|
21 |
Sundry |
|
21 |
|
8 |
Total |
|
107 |
|
74 |
|
|
2025 |
|
2024 |
|---|---|---|---|---|
Additions to provisions |
|
– |
|
7 |
Exchange differences |
|
1 |
|
8 |
Acquisitions/disposals |
|
2 |
|
39 |
Sundry |
|
4 |
|
8 |
Total |
|
7 |
|
62 |