DSM-Firmenich Feedback conference call

Below are the highlights of the conference call. 4Q adj. EBITDA was roughly in line with our forecast and 1% above CSS. FY24 guidance of an adj. EBITDA of at least € 1.9bn is below our and CSS forecasts of c € 2.0bn but assumes no market improvement and only integrates savings/synergies. A separation plan for Animal Nutrition & Health is initiated, targeting a different ownership. Given the recent earnings volatility and different margin profile vs the rest of the group, we believe a divestment makes sense, although we wonder how much dsm-firmenich will get for the business after the recent weak performance. We still appreciate dsm-firmenich for its broad portfolio and market leading positions and maintain our Accumulate rating.