DSM-Firmenich Conference call feedback

Below are the highlights from the 3Q results conference call. 3Q adjusted EBITDA jumped 32% and beat our and consensus by respectively 3% and 1%. Dsm-firmenich increased FY24 adj EBITDA guidance from c € 2bn to towards € 2.1bn, citing disruption in the vitamin market. We remind that the recently announced mid term financial targets for the new scope (ie ex ANH) are similar to the targets of the current group, ie 5-7% organic sales growth and an 22-23% adjusted EBITDA margin, which represent a sizeable step-up to the FY23 margin level of c. 18% (ex ANH). We believe that the recent vitamin price recovery increase the chances of a successful exit out of ANH with our exit price forecast recently increased to € 3.9-4.4bn, which corresponds to an EV/EBITDA25e multiple of 9-10x. We appreciate the core customer oriented businesses of dsm-firmenich for the broad portfolio and market leading positions. We maintain our Accumulate rating and € 125 target price.