Firmenich plans further price increases

Firmenich posted solid revenue growth in the first quarter of the staggered 2022/23 fiscal year, which ended in late September. The increase in sales was driven by both volume and price increases. If the figures for October are encouraging, the manufacturer of flavors and fragrances is however cautious for the future in the context of volatility.

Read also: With its new campus, Firmenich wants to show its roots in Geneva

Between July and September, Firmenich’s turnover increased by 11.6% at constant exchange rates to 1.25 billion francs, for an operating result Ebitda of 237 million, writes the company on Tuesday in a communicated. The currency effect, however, had a negative impact of 200 basis points on the Ebitda margin of 19%, explained Gilbert Ghostine, CEO, during an interview with AWP.

During this period, prices increased by 5% and volumes by 7%, detailed the managing director. Price increases have failed to fully offset rising input and energy prices, and further price hikes are in preparation, he said. Firmenich has also introduced a surcharge linked to energy prices, which can be lifted when the situation normalizes.

Also read: Industrialists denounce Bern’s silence on energy savings

Merger with DSM ahead of schedule

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Regarding the merger with DSM, the official launch of the exchange offer has been set for November 23 and will last until January 31, 2023, Firmenich writes in its press release. The operation was announced on May 31. The shareholders of Firmenich, an unlisted company, have already approved the transaction, and those of DSM, listed in Amsterdam, will vote at the general meeting on January 23rd.

Competition authorities have already given the green light in several jurisdictions, including the United States, said Gilbert Ghostine. The process should be finalized earlier than expected, in the first quarter of 2023. So far, Firmenich and DSM had set a target of the second quarter of 2023.

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