Firmenich International SA, the world's largest privately-owned fragrance and flavor company, announces its annual results for the 52 weeks ending June 30, 2022.
Financial highlights
- Revenue of CHF 4723 million, up +11.11TP6Q1 Adjusted EBITDA of CHF 905 million, up +10.91TP6Q.
- Adjusted EBITDA margin 19.21TP6Q, up +10 basis points
- Free cash flow of CHF 414 million, down -19.1%, or -5.9% on a comparable basis2 EBITDA to free cash flow conversion ratio of 51.8 %.
- Record revenues and adjusted EBITDA, despite a difficult global environment for raw materials, logistics and energy costs.
- Outperforming the sector in terms of sales growth and market share gains, underpinned by double-digit sales growth in Fragrance & Ingredients and Taste & Beyond, thanks to improved customer demand.
- Sales growth in all regions, with strong momentum in our main geographical areas, notably Europe (+18.9%), India (+13.1%), China (+9.4%) and North America (+5.1%).
- Strong cash generation, despite higher safety stocks linked to the priority given to customer service in the supply chain in a difficult global environment.
" Firmenich's strong performance in FY22 is the result of our ongoing commitment to serving and innovating with our customers, and testifies to the strength of our fragrance and taste offerings. We are now entering a new chapter in our history, with the announced merger with DSM, and I am pleased to see that our company is entering this new phase from a position of strength." said Patrick Firmenich, Chairman of the Board.
" Despite a persistently difficult macroeconomic environment, Firmenich posted another year of good results, with double-digit growth in sales and adjusted EBITDA. We demonstrated leadership and excellence in execution. As always, I would like to thank our 11,000 employees for making this possible. I look forward to the year ahead, which marks the beginning of a new chapter for Firmenich. "said Gilbert Ghostine, CEO of Firmenich.
Strengths of the operation
- Continue to prioritize customer supply, preserving TOTIF3's superior service levels, in a particularly challenging global environment for raw materials and the supply chain.
- Firmenich benefited from its continued investment in growth segments and differentiated offerings, including sugar reduction, natural and renewable ingredients, plant-based foods, clean and responsible fragrances, e-commerce and digital channels.
- Continued investment in strategic markets, highlighted by the move to a majority stake in ArtSci in April 2022 to better serve the fast-growing Chinese taste market.
- Ongoing strategic investment in innovation:
o Announcement of the creation of a Scientific Advisory Board in May 2022 to oversee our R&D strategy.
o Inauguration of a state-of-the-art creation and development center at the Dubai Science Park, to strengthen science and innovation capabilities,
o Launch of new biodegradable ingredients such as Muguissimo™ and natural 100% ingredients including Muguet Firgood™.
- Raising the ESG bar: Improved industry-leading Sustainalytics ESG risk score to 7.5, placing it among the top 50 companies assessed worldwide; Recognition as one of the world's most ethical companies by Ethisphere in 2022; achieved CDP's triple-A rating for the fourth consecutive time; and achieved EcoVadis' platinum sustainability rating for the second time in a row, with an industry-leading score of 88/100, placing it in the top 1 % of companies assessed.
Performance for fiscal 2022
In fiscal 2022, the global economy experienced a challenging raw materials and supply chain environment, compounded by high geopolitical instability and new waves of Covid-19 in various regions.
Despite this context, Firmenich achieved record sales growth across the company, as well as double-digit growth in adjusted EBITDA and strong cash generation. Firmenich navigated this challenging environment with agility, prioritizing service and security of supply for its customers. Its reliability as a business partner, combined with the competitive advantage provided by its vertical integration of supply, enabled it to continue to gain market share.
