Global Chemicals Weekly: News, views and valuation

Research evidence excerpt

Global Chemicals Weekly: News, views and valuation

Deutsche Bank

Research

Europe Industry Date

Global 12 June 2026

Global Chemicals

Chemicals Industry Update

Bulk Weekly

News, views and valuation

Virginie Boucher-Ferte

Ingredients Research Analyst

Last week, we hosted the management teams of seven ingredient companies +33-1-4495-5934

(Croda, dsm-firmenich, Givaudan, IFF, Kerry, Novonesis, Symrise) at our DB

Tristan Lamotte

Access Global Consumer Conference. In this note we summarise the key general Research Analyst

conclusions as well as individual company feedback. +44-20-7547-1862

David Begleiter

All of the company representatives delivered fairly reassuring messages. Demand

Research Analyst

remains solid, with Q2 conditions holding up after the March step-up. Combined

+1-212-250-5473

with increasing innovation activity, this should lead to a sequential organic sales

growth (OSG) acceleration for most. At this stage, cost inflation appears to be Rajiv Dalal

manageable and should be passed through fairly quickly, ensuring profitability Research Associate

remains relatively well-underpinned, especially as self-help focus remains strong

for most names. All in all, we expect Q2 results to be above the consensus. We are Saurabh Mehndiratta

the most above the Q2 profit consensus for Givaudan and Croda. Research Associate

Despite this relatively confident tone for the short term, companies appear very Dimitri Druart

much in "wait-and-see" mode, due to a fear of demand destruction (not visible yet) Research Associate

and prolonged inflationary headwinds. As for demand, given staples haven't called +33-1-4495-5937

out any sequential weakening and ingredients OSG typically lags staples by 3-4

months, we believe demand should remain ok until Q3.