DAVY VIEW

We attended dsm-firmenich’s teach-in at its Perfumery & Beauty (P&B) HQ in Switzerland. The visit included workshops across its P&B and Taste, Texture & Health (TTH) divisions, providing good access to senior management. The event showcased a broad technology-backed toolkit and TTH solutions, achievable using the combined capabilities of both companies. The visit achieved its goal of deepening our understanding of legacy Firmenich activities. As we observe the development of the industry (and its vocabulary), we believe it is becoming more difficult for investors to discern unique points of difference. The areas of differentiation across P&B and TTH that we highlight from the site visit include (though not exclusive): receptor-based discovery platform, malodour control technology, next generation encapsulation and extraction processes, leadership position in musk and sugar reduction. Following a challenging 2023, we believe the business is on a more assured footing with integration plans progressing well. In this brief report, we highlight the key takeaways.