DSM-Firmenich FIRST LOOK Investor Update: no surprise on guidance & mid term targets

Following the recent divestment announcement of ANH, dsm-firmenich presents is updated strategy & targets in an Investor Update which will take place in London today. After the ANH divestment, dsm-firmenich will focus on its consumer oriented businesses. As previously hinted at, Dsm-firmenich reiterated the mid term financial targets for organic sales growth and adjusted EBITDA margin whilst it has upped the cash conversion target from =10% to =14%. The guidance of 2026 is a bit more cautious than the mid term targets but broadly in line with our and consensus expectations (2-4% organic sales growth and c. 20% adjusted EBITDA margin). We still appreciate dsm-firmenich for its broad portfolio and market leading positions in consumer-oriented businesses in Nutrition, Health and Beauty. We maintain our Accumulate rating and € 82 target price.