Ahead of the imminent completion of DSMs merger with Firmenich, the Dutch business has disclosed a difficult first quarter where the company’s sales and margins have declined. The company reports 6 % lower sales than in Q1 2021 – sales of EUR 1.89 bn. DSM co-CEOs Geraldine Matchett and Dimitri de Vreeze comment: “Our first quarter results are reported against a comparable period that had not yet been impacted by the high rate of global inflation, the effects of which remained elevated into 2023.” The company expects to return to the path of growth during the second half of the year, with the company expecting to raise prices to boost profitability.

DSM F&B sales declined less than the company’s general sales, at 2 %. Nevertheless, the company’s F&B sales volume declined by 11 % in the quarter. According to the business, these lower volumes reflected destocking in the value chain, as well as the decision by DSM to step away from some low-priced vitamin volumes to protect profitability. “F&B once again demonstrated resilience. End-use demand in Dairy, Baking, Beverages, Savoury and Pet food markets was solid. Hydrocolloids demand remained strong,” flags the business.