Accounting policy
The cash flow statement explains the changes in cash and cash equivalents. It is prepared via a comparison of the balance sheets at January 1 and December 31.
In reporting the cash flows from operating activities, dsm-firmenich applies the indirect method. Under this method, the profit or loss for the period is adjusted for changes that do not involve cash flows, such as changes in exchange rates, amortization, depreciation, impairment losses, and transfers to other balance sheet items. Changes in working capital due to the acquisition or disposal of consolidated companies are included under Investing activities.
The consolidated cash flow statement includes an analysis of all cash flows in total, including continuing and discontinued operations. For amounts related to discontinued operations split by activities and a reconciliation of results from continuing operations to total, see Note 3 Change in the scope of the consolidation.
Most of the changes can be traced back to the detailed statements of changes for the balance sheet items concerned. For those balance sheet items for which no detailed statement of changes is included, the table opposite shows the link between the change according to the balance sheet and the change according to the cash flow statement.
The cash flow relating to acquisitions (-€19 million) was limited in 2025. The disposal of businesses of €1,270 million mainly relates to the divestment of the Feed Enzymes business and the costs for the preparation of the divestment of the Animal Nutrition and Health business. It consists of the cash-related part of the consideration (€1,476 million) minus the cash in the divested companies (€34 million) and the divestment-related costs and tax settlements (€172 million). See also Note 3 Change in the scope of the consolidation.
|
|
2025 |
|
2024 |
|---|---|---|---|---|
Operating working capital |
|
|
|
|
Balance at January 1 |
|
3,603 |
|
3,769 |
Balance at December 31 |
|
2,481 |
|
3,603 |
Balance sheet change |
|
(1,122) |
|
(166) |
|
|
|
|
|
Adjustments: |
|
|
|
|
- Exchange differences |
|
238 |
|
(4) |
- Changes in consolidation (including acquisitions and disposals) |
|
7 |
|
122 |
- Reclassification to held for sale |
|
953 |
|
– |
- Transfers/non-cash value adjustments |
|
24 |
|
7 |
Total change in operating working capital according to the cash flow statement |
|
100 |
|
(41) |
In 2025, the operating working capital continuing operations was €2,481 million (2024: €3,603 million), which amounts to 28.8% of annualized fourth-quarter net sales (2024: 27.3%).