Baked goods and cereals boost Symrise sales, at-home cooking remains strong
29 Oct 2020 --- Symrise has continued its profitable growth course in Q3 despite COVID-19-related challenges, increasing its sales in the first nine months of 2020 by 5.9 percent to just over €2.7 billion (US$3.1 billion).
The Flavor segment was driven by trends toward cooking and eating at home as changes in consumer behavior due to the pandemic continued throughout the third quarter.
As these trends remain significant, Symrise noted strong demand for products from the Savory business unit and product solutions for baked goods and cereals.
Reduced out-of-home eating and drinking further affected the demand for beverage products and sweets, notes Symrise.At the same time, reduced out-of-home eating and drinking further affected the demand for beverage products and sweets. The segment achieved organic growth of 0.6 percent in the first nine months as well as in the third quarter. Segment sales in reporting currency amounted to €949 million (US$1.1 billion).
Alternative proteins in demand
Sales in the EAME region were characterized by a significantly reduced demand for beverage products and sweets. At the same time, Savory achieved high single-digit growth.
Product innovations for alternative proteins developed particularly well. The national markets of Germany and Russia achieved the strongest growth.
The pandemic continued to have a more negative impact on demand in France and the UK.
Overall, sales in EAME were slightly below the result of the first nine months of the prior year.
In North America, the Flavor segment achieved double-digit sales growth on an organic basis in the third quarter. As a result, the segment achieved a solid single-digit organic growth rate in the first nine months. Customers particularly demanded solutions for beverage and savory products.
APAC reported strong demand for savory applications, which achieved organic growth in the double-digit percentage range. The largest increases were achieved in Indonesia, Thailand, Vietnam and South Korea.
Sales for beverage and sweet applications were slower, particularly in the third quarter. In total, organic sales in the region were at the prior-year level.
Symrise also noted strong demand for products from its Savory business unit and product solutions for baked goods.
The segment achieved the strongest growth in Latin America in the first nine months of 2020 and remained largely unaffected by COVID-19. All business units realized high organic growth in the single or double-digit percentage range. The national markets of Brazil, Uruguay and Mexico developed particularly well.
“Thanks to our solid positioning, the broadly diversified product portfolio, and the commitment and flexibility of our employees, we were able to build on the previous months and further increase our sales, also during the coronavirus pandemic,” says Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.
“The shifts in consumer demand during the first six months of the year have continued during Q3. Product solutions for food, as well as personal care and hygiene, remained in high demand. We are overall confident that we will conclude this historically very special year with good growth.”
In organic terms – excluding the portfolio effect of ADF/IDF and currency translation effects – Symrise sales were up by 3.3 percent in the first nine months. All segments contributed to this positive development, and achieved organic sales growth, notes the company.
Edited by Gaynor Selby
