DSM-Firmenich Shifts Focus: Health & Nutrition Growth Accelerates Amid Portfolio Streamlining

Zug, Switzerland — 23 July 2026

DSM-Firmenich's Taste, Texture & Health business segment recorded robust acceleration in the second quarter of 2026, with like-for-like (LFL) sales growth reaching 6%. This performance outpaces the 2% growth seen in Q1, driven predominantly by strong demand in the beverages, baking, and dairy sectors. The division achieved €1.63 billion in first-half sales, representing a 4% LFL increase, with revenue synergies contributing 1.5 percentage points. Despite a 60-basis-point foreign exchange headwind and elevated costs, adjusted EBITDA for the segment grew 3% LFL to €321 million, with sequential margin improvement to 20.2% in Q2 from 19.1% in Q1, according to the company's latest financial report.

The company is strategically reshaping its portfolio, with the divestment of its Animal Nutrition & Health business expected to conclude by the end of 2026. This transaction, valued at approximately €2.2 billion, including an earnout of up to €500 million, aligns with DSM-Firmenich's sharpened focus on nutrition, health, and beauty. The Animal Nutrition & Health segment, along with the 2025 sale of Feed Enzymes for €1.5 billion to Novonesis, represents a significant exit from the broader animal nutrition market, unlocking substantial capital for reinvestment into core areas. The company expects to retain a 20% stake in the two new businesses emerging from the divested division.

First-half sales from continuing operations totalled €4.66 billion, marking a 5% LFL growth, with adjusted EBITDA rising 7% LFL to €900 million. DSM-Firmenich maintains its 2026 sales growth outlook towards the upper end of its 2–4% target range. The Health, Nutrition & Care segment also demonstrated positive momentum, generating €1.04 billion in first-half sales, up 4% LFL. This segment's adjusted EBITDA surged 15% LFL to €206 million, expanding its margin to 19.9% from 18.8%. Growth was primarily led by Early Life Nutrition, specifically human milk oligosaccharides and arachidonic acid, and strong performance in Biomedical. However, the Dietary Supplements and i-Health sub-segments faced challenges due to cautious consumer spending, particularly within the North American market.

The company's restructuring programme, designed to eliminate stranded costs post-divestment, aims to reduce approximately 1,000 positions over 18–24 months, projecting €100 million in cost savings. This operational streamlining is critical for optimising resource allocation and improving overall profitability in the focused human nutrition and ingredients businesses.

What this means for United Kingdom

UK brand owners must recalibrate ingredient sourcing strategies, anticipating increased competition for DSM-Firmenich's core Taste, Texture & Health ingredients in beverages, baking, and dairy. Strong Q2 growth in these areas suggests potential price firming or extended lead times. The strategic divestment of Animal Nutrition & Health frees significant capital for DSM-Firmenich, potentially leading to intensified M&A activity or R&D investment in human nutrition ingredients relevant to the UK market. This could introduce novel ingredients or drive reformulation windows. Brand owners in the UK's dietary supplements sector should note the reported cautious consumer spending in North America and proactively assess similar risk factors in their domestic market, especially for premium or non-essential product lines, necessitating agile product development and promotional adjustments.

Brand owners increasingly rely on contract-manufacturing partners such as Supplement Factory to navigate these requirements.