ANH is being driven by different dynamics to the rest of the company and this became more apparent with the “unprecedented challenges in the vitamins market,” the company said. Therefore, DSM-Firmenich believes that the full potential of the ANH business could be best realized through a different ownership structure for which all potential separation options will be considered. The company assumes that it will be able to separate the business in the course of 2025.

A separation would enable DSM-Firmenich to strengthen its position in nutrition, health, and beauty by focusing on Perfumery & Beauty (P&B); Taste, Texture & Health (TTH); and Health, Nutrition & Care (HNC), the company explained.

In addition, the separation of the ANH business will reduce the company’s exposure to future vitamin earnings volatility, DSM-Firmenich said.

ANH is headquartered at Kaiseraugst, Switzerland, and in 2023 it reported more than €3 billion in revenues. It has approximately 6,000 employees and is a leader in animal proteins, the company said.

Dimitri de Vreeze, CEO of DSM-Firmenich, commented: “This is a difficult moment, but we strongly believe that a separation would be better for both businesses and their employees, and ultimately generate better value for all our stakeholders.”

As part of the vitamin transformation program announced in June 2023, DSM-Firmenich said that it continues to make significant progress on its cost reduction plan including plant closures, route-to-market simplification, and optimized service levels. The company remains confident in realizing a contribution of €100 million in adjusted EBITDA in 2024 and the full benefit of €200 million in 2025.

DSM-Firmenich was formed from the merger of the Swiss company Firmenich and the Dutch company DSM. The merger was announced in June 2022 and completed in April 2023.