Profits Fall at Symrise but Q1 Sales Swell as Benefits from Pinova Acquisition
10 May 2016 --- Symrise has reported a dip in first quarter profits but sales were swelled as it benefited from the acquisition of US perfume ingredient maker Pinova.
Profits at the German supplier of fragrances, flavorings, and cosmetic ingredients fell from €99.3m ($113m) to €95m ($108m) year-on-year in Q1.
However, sales jumped from €668m ($760m) to €731m ($837m) largely because of the acquisition of Pinova, the Georgia-based company which makes perfume ingredients from natural sources it acquired for $417million last year.
Dr Heinz-Jürgen Bertram, chief executive of Symrise, said: "Despite high volatility in some markets, Symrise achieved solid first-quarter growth and is right on track. We posted gains in all regions and both segments."
“After the successful start to the year, we are generally confident as we look ahead to the coming months. We will continue pushing ahead with our planned growth projects, above all the integration of Pinova Holdings, the ongoing crosslinking of our expertise, and the targeted expansion of capacity."
By region, the strongest growth was in Latin America, where sales were up 31 percent, ahead of North America, where sales were up 30 percent followed by Asia/Pacific (11 %) and EAME (4 %). Symrise also increased sales in Emerging Markets, with sales up 15 %.
By division, sales across Scent & Care rose by 22 percent to €344.3m ($392m), as it benefited from a strong performance in fragrances and cosmetics. Pinova was included in sales for the first time.
Symrise is forecasting that the acquisition of Pinova will help it make cost-savings of €20 million in the long-term.
Across Flavor & Nutrition, sales were up 1 percent to €387.5m ($440m) million.
Looking forward, Symrise said it was optimistic for the rest of 2016.
Symrise said: "Despite ongoing political conflicts and the economic volatility in some regions, Symrise is overall confident for the fiscal year 2016. The Group expects demand to remain solid in all regions and both segments. “
“Against this backdrop, Symrise has reaffirmed its objective of outperforming the global flavor and fragrances market, which is estimated to be growing at an annual rate of 2-3 %.
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