Flavor & Nutrition Power Growth at Symrise as Positive Effects of Diana Acquisition Felt
08 Mar 2016 --- Symrise, the German flavorings and cosmetic ingredients company, has reported that its net income has lifted 7 percent to €246.8 million ($272 million) in 2015, fuelled by growth across its Flavor & Nutrition division and emerging markets.
Annual sales grew by 23 percent to €2.6 billion ($2.87 billion), buoyed by sales at Diana Group, the French-based provider of natural extracts from fruits, vegetable and fish, which Symrise acquired in 2014.
Diana Group contributed sales of €524.8 million ($579 million) in 2015.
Excluding the contribution of Diana, Symrise, which also supplies fragrances, generated sales growth of 10 percent.
However, the company warned of a challenging year ahead.
It said: “Ongoing political conflicts in certain regions, heavy debt burdens of some countries and the low oil price are weighing down the global economy.”
Across its Flavor & Nutrition unit, sales were up 34 percent, as the division benefited from strong demand for beverages and savory applications.
There was also strong growth in Diana Group’s pet food and aquaculture applications. EBITDA (earnings before interest, tax depreciation and amortization) was up 41 percent to €340.9 million.
Dr. Heinz-Jurgen Bertram, CEO, said: “In 2015 it was our decisive goal to substantially grow our business. We made targeted investment in growth and in expanding our competencies and know-how.”
“Our portfolio clearly shows the benefits: it has expanded beyond our traditional product range and allows us to serve new, strategic business areas such as functional ingredients for everyday products. In 2015 we were once again one of the fastest-growing companies in our industry.”
Symrise highlighted its performance in emerging marketing, where sales grew by 21 percent and generated 46 percent of total sales, albeit this was down one percent on the year previous.
Sales across Scent & Scare unit, sales came in at €1.07 billion ($1.18 billion), an uplift of 10 percent.
Dr. Bertram added: “A priority for us in 2016 is the cross-linking of our extensive expertise. In this way we will not only continue our track for success but also extend our competitive edge with a widely diversified portfolio.”
In concluding, the company reported that it aims at outperforming the global F&F market in 2016, both at the Group level and in both segments. The Company has made a good start in the current fiscal year and will capitalize growth opportunities in Developed and Emerging Markets. Consequently, Symrise remains fully committed to the midterm objectives extending to the end of 2020, namely a compound annual growth rate (CAGR) of 5-7% and an EBITDA margin of 19-22%.
by John Reynolds
