Koninklijke DSM N.V.

On a continuing-operations basis, full-year 2025 organic sales growth was 3%, versus 6% in 2024 on a restated apples-to-apples basis. Adjusted EBITDA was EUR 1.7 billion to EUR 1.8 billion, up 5% like-for-like, and the EBITDA margin was 19.6% after starting from 18% and moving to 19% in prior years; management said the last two quarters were closer to 20%. Full-year cash conversion for continuing operations was 10.5% of sales, and core ROCE was just over 11%. By business, Perfumery & Beauty grew 3% organically and had a 22% average margin; Taste, Texture & Health grew 4% organically; Health, Nutrition & Care grew around 3% organically. Management did not give formal 2026 guidance, but said the March 12 event will include ranges for organic sales growth, EBITDA quality as a percentage, and cash, with cash target likely moving above the prior 10% level.

Dimitri de Vreeze framed 2025 as the start of the company’s next phase as a focused Nutrition, Health and Beauty business after the ANH divestment. He emphasized that the deal structure reduces downside risk in ANH while preserving upside through a 20% stake and earnout exposure, and said the company will use the proceeds for share buybacks and a stable dividend. His tone was confident but measured: he repeatedly pointed to resilience in a difficult market, near-20% margins, and a plan to “grow what we have” rather than pursue large M&A.

Ralf Schmeitz stressed that the numbers were shown on a continuing-operations basis and that ANH is now treated as discontinued, with the business managed for cash until closing expected toward the end of the year. He said adjusted EBITDA for the total group would land just below EUR 2.3 billion and revenue at EUR 22.80 billion, with the tax rate at 21% for continuing operations and working capital below 29%. He also said cash conversion was above 10%, that elevated inventory tied to tariffs and carve-out activity weighed on cash, that APM leakage should come down to below EUR 100 million in 2026, and that the FX sensitivity improved, including CHF exposure falling from CHF 800 million to CHF 600 million.

Analysts pressed management on why no 2026 guidance was given, whether the EUR 75 million stranded cost from ANH would hit future EBITDA, and whether margin pressure in perfumery ingredients was emerging. Management said the stranded cost will have zero effect on EBITDA because it has offsetting actions and a clear road map, and defended waiting until March 12 because the business had only just been restated and they want to guide on the new continuing-operations scope with BU-level detail. On margins and cash, management said P&B margin weakness was mostly FX and mix, cash conversion was depressed by roughly EUR 100 million of inventory, softer demand, and timing effects, and they expect the cash target to be lifted.