Kaiseraugst (Switzerland) and Maastricht (Netherlands), June 27, 2025 – DSM-Firmenich, a global leader in nutrition, health, and beauty innovation, has announced a significant expansion of its ongoing share repurchase initiative, raising the total value of the program to €1.08 billion. This decision follows the successful completion of the company’s previously disclosed divestment of its stake in the Feed Enzymes Alliance. The enhanced program demonstrates DSM-Firmenich’s commitment to capital optimization, delivering shareholder value, and maintaining long-term financial resilience.
Strengthening Capital Management Strategy
Originally launched on February 13, 2025, DSM-Firmenich’s share repurchase program aimed to buy back ordinary shares with an aggregate market value of €1 billion, as part of a broader strategy to return capital to shareholders and reduce its issued share capital. The program initially started with an authorization to repurchase up to €500 million worth of shares, setting aside €80 million of this for fulfilling obligations under the Group’s share-based compensation schemes. The remaining €420 million was designated to reduce the company’s outstanding share capital.
However, a second tranche—valued at an additional €500 million—was subject to certain conditions, most notably the successful completion of the sale of DSM-Firmenich’s equity interest in the Feed Enzymes Alliance, a key joint venture in the animal nutrition sector. That condition has now been satisfied.
With this strategic divestment finalized, DSM-Firmenich is now in a position to fully activate the second tranche, bringing the total authorized share repurchase to €1.08 billion. This represents a significant capital deployment and affirms the company’s confidence in its long-term growth strategy, balance sheet strength, and cash flow generation capabilities.
Timeline and Execution
The enhanced share repurchase program officially took effect on June 27, 2025, and is scheduled for completion by January 30, 2026, unless concluded earlier. Execution of the buyback mandate will be carried out in compliance with the Market Abuse Regulation (MAR) and under the framework of Swiss corporate law.
To facilitate the implementation of the program, DSM-Firmenich has entered into an amended discretionary share buyback agreement with a reputable financial institution. This agreement entrusts the appointed bank with the full autonomy to conduct open-market transactions on behalf of the company, thereby ensuring compliance with all regulatory requirements and enabling efficient execution. Trading decisions made under this agreement will be conducted independently of DSM-Firmenich’s internal management to maintain market integrity.
Share Repurchase Progress and Market Impact
As of the date of this announcement, DSM-Firmenich has already repurchased approximately 3.6 million ordinary shares under the ongoing program. These repurchases have occurred through open market transactions on Euronext Amsterdam, where the company’s shares are listed.
Based on the closing share price on June 26, 2025, and the newly increased program size, the company anticipates acquiring approximately 8.1 million additional shares—equivalent to around 3.0% of its currently issued share capital. These shares will either be cancelled to reduce share capital or used to settle future obligations related to share-based incentive plans for employees and executives.
The buyback initiative is expected to have a positive impact on earnings per share (EPS) by reducing the number of outstanding shares, while also serving as a signal of confidence in the company’s intrinsic value. Moreover, the reduction of share capital aligns with DSM-Firmenich’s goal of optimizing its capital structure, reinforcing shareholder returns, and supporting longer-term investment strategies.
Strategic Rationale Behind the Buyback Expansion
The decision to significantly increase the size of the repurchase program underscores DSM-Firmenich’s proactive capital allocation approach. By reallocating proceeds from the sale of its interest in the Feed Enzymes Alliance—a non-core asset—the company is reinvesting in its own equity, reflecting a belief that its current market valuation represents an attractive investment opportunity.
This move comes at a time when DSM-Firmenich continues to streamline and focus its business model around high-growth areas in nutrition, health, and beauty. The company’s long-term strategy involves building leadership positions in key categories such as precision nutrition, personal care innovation, and sustainable ingredients, supported by robust R&D and a global innovation network.
By monetizing non-core investments and returning excess capital to shareholders, DSM-Firmenich is not only enhancing its financial flexibility but also sharpening its strategic focus on its core value drivers. This financial discipline allows the company to pursue growth opportunities while maintaining a healthy balance sheet and delivering attractive returns.
Transparent Market Communication
Consistent with best practices in corporate governance and regulatory requirements, DSM-Firmenich has committed to providing regular updates on the execution of the expanded share repurchase program. Weekly press releases will be issued detailing the number of shares repurchased, average prices paid, and cumulative progress. This ensures transparenc
