Symrise Continues Growth Track at Accelerated Pace


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  • Organic sales increase of 6.5 % in the first nine months of the year and 9.1 % in the third quarter
  • Group sales up by 3.9 % to € 2,278.4 million, including portfolio and exchange rate effects
  • EBITDA margin at a strong 21.3 %
  • Symrise reinforces sales and profitability targets for the current fiscal year
Holzminden, Germany - 8 November, 2017
Symrise AG accelerated its growth course in the third quarter, achieving overall a considerable increase in sales and earnings for the nine-month period. This positive trend was driven by strong demand across all segments. Symrise increased its sales organically by 6.5 % in the first nine months of the year. Organic growth was particularly dynamic in the third quarter with a plus of 9.1 %. Taking into account portfolio and exchange rate effects, sales in the first nine months of the year were up 3.9 % to € 2,278.4 million (9M 2016: € 2,192.3 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 485.2 million (EBITDAN 9M 2016: € 480.3 million). With an EBITDA margin of 21.3 %, profitability remained high (EBITDAN margin 9M 2016: 21.9 %).


"We continued our growth initiatives in the third quarter, which led to a successfully expanded market position," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. "We consider the strong sales growth as a result of our unique positioning. The targeted investments into the product portfolio, research and development and new markets support our strategy. We are confidently looking ahead to the remaining weeks of the year. Our guidance for 2017 remains in place and we also confirm our long-term targets.
We are committed to continue as one of the fastest-growing companies in the industry and to operate highly profitable.
"

Continued strong sales growth
Symrise achieved strong organic sales growth of 6.5 % in the period from January to September, including a 9.1 % increase in the third quarter. Considering portfolio effects – namely the sale of the industrial activities of Pinova in December 2016 and the Nutraceutix and Cobell acquisitions – as well as exchange rate effects sales were up 3.9 % to € 2,278.4 million (9M 2016: € 2,192.3 million). Third quarter sales were impacted by an unfavorable exchange rate environment, especially the devaluation of the US dollar against the euro.

Profitability remains high with an EBITDA margin of 21.3 %
Symrise continued to operate highly profitable in the first nine months of the year. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 1.0 % to € 485.2 million (EBITDAN 9M 2016: € 480.3 million). The Group's EBITDA margin was a very satisfactory 21.3 % and was thus within the targeted mid-term corridor of 19 to 22 % (EBITDAN margin 9M 2016: 21.9 %).

Scent & Care with good growth momentum, especially in the third quarter
Scent & Care posted a 3.3 % organic sales increase in the first nine months of the year. In the third quarter, organic growth reached even 7.7 %. Taking into account the sale of Pinova Inc., sales in the segment amounted to € 960.1 million; as expected they were 3.7 % lower than in the first nine months of 2016 (9M 2016: € 997.2 million).

The strongest growth in the segment was achieved by the Cosmetic Ingredients division. Demand was especially high in the regions EAME and Asia/Pacific. Sales were up significantly in the national markets of Germany and Italy as well as China and South Korea.

Adjusted for the Pinova portfolio effect, the Aroma Molecules division posted moderate growth. Positive signals mainly came from the national markets in the USA, Indonesia, Japan and China. The integration of the Pinova fragrance business continued to strengthen the division through a broader portfolio of unique, natural ingredients.

The Fragrance division achieved moderate growth in the first nine months of the year, with good growth momentum in the third quarter. Very positive business performance was recorded amongst others in the country markets UK, the Philippines, Argentina and Mexico. In the Home Care business unit, Latin America achieved double-digit growth in local currency through new business with global and regional customers, especially in the national markets of Columbia and Mexico. The application area of Beauty Care saw increased demand in the third quarter, however it was unable to match the strong results of the first nine months of the previous year. Oral Care applications experienced moderate global growth in the period from January to September. Sales increased above all in EAME and North America. In the Asia/Pacific region and Latin America, products for oral hygiene lagged behind as compared to the prioryear period. The Fine Fragrance business unit achieved dynamic growth especially in Latin America, with double-digit increases in sales in Brazil and Argentina in local currency. In addition, business was further extended in the Asia/Pacific region in Indonesia and India.

EBITDA in the Scent & Care segment amounted to € 196.2 million in the first nine months of the year (EBITDAN 9M 2016: € 203.6 million). The EBITDA margin, at 20.4 %, was equal to the normalized level of the first nine months of the previous year. In the third quarter, the margin improved noticeably as compared with the normalized figure for the same period a year earlier due to stronger demand. It stood at 21.1 % compared to 19.3 % in the third quarter of 2016.
 



About Symrise:

Symrise is a global supplier of fragrances, flavorings, cosmetic base materials and substances as well as functional ingredients. Its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements and pet food.
 
With sales of more than € 2.9 billion in 2016, Symrise is among the global leaders in the market for flavors and fragrances. Headquartered in Holzminden, Germany, the Group is represented with over 90 locations in Europe, Africa and the Middle East, Asia, the United States and Latin America.
 
Symrise works with its clients to develop new ideas and market-ready concepts for products that form an indispensable part of everyday life. Economic success and corporate responsibility are inextricably linked as part of this process.

Symrise – always inspiring more…
www.symrise.co

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