DSM-Firmenich FIRST LOOK :1Q adj EBITDA -11%, FY guidance maintained

1Q adj EBITDA decreased by 11% which was close to our and consensus forecasts. Dsm-firmenich expects to see higher vitamin prices as from 2Q and reiterated FY guidance of at least € 1.9bn adjusted EBITDA, with our and consensus forecasts close to € 2bn. The carve out of Animal Nutrition & Health has started and based on a gradual improvement of market conditions as well as earnings support from the € 200m vitamin restructuring program, we believe proceeds of € 3.0-3.5bn for ANH to be possible, which would give the remaining dsm-firmenich group again a net cash position it might use for further portfolio building within its core consumer-oriented businesses. Overall, we still appreciate dsm-firmenich for its broad portfolio and market leading positions and maintain our Accumulate rating and € 120 target price.