Symrise reports double-digit growth

Posted by Josette Dunn on 10th November 2010

Group sales grow by 16.4 % – Emerging markets account for 46 % of sales – Profitability rises disproportionate to sales, EBITDA margin at 22.2 % – Objectives for 2010 will be achieved
Following the dynamic development of business in the first half of the year, Symrise AG continued to benefit from the economic recovery in important markets in the third quarter. The positive development was driven by solid consumer confidence in established markets and an on-going high demand in emerging markets.

During the nine-month period Symrise saw sales grow by 16.4 % (12.4 % at local currency), thereby again growing faster than the market for flavors and fragrances. The Group EBITDA rose 40 % to € 267.7 million and the EBITDA margin improved from 18.4 % to 22.2 %. The strong sales growth, a high utilization of production capacities and ongoing cost awareness contributed significantly to the positive earnings development.Flavor & Nutrition – highly profitable with an EBITDA margin of 23.3 %

The Flavor & Nutrition division also enjoyed high demand in all application areas with a particularly strong development in Sweets and Beverages.

Business developed most dynamically in Latin America. Flavor & Nutrition achieved a 15 % increase in sales (at local currency), which was particularly driven by strong business with international and local key customers. The Asia/Pacific region posted the second-highest increase in sales of 13 % (at local currency) primarily due to the high demand in Beverages.

Both North America and the EAME region posted a 9 % growth in sales (at local currency). Products from the application areas Sweet and Savory were the primary growth engines in North America. Symrise also concluded new supplier contracts for vanilla flavors and seasonings in North America. In the EAME region, Flavor & Nutrition benefited mainly from the above-average growth rate for soft drinks and alcoholic beverages, among others from an increasing demand for mixed beer beverages.

Segment sales during the reporting period rose 12.9 % (10.2 % at local currency) to € 586.0 million (previous year: € 518.9 million). The EBITDA improved by 29 % to € 136.5 million (previous year: € 105.8 million). The EBITDA margin attained the excellent level of 23.3 %.