Strong growth in sweet, savory and beverages propels Symrise's third quarter profits

25 Oct 2023 --- Symrise has unveiled its organic sales growth of 7.4% after the first nine months, with the group sales rising to €3.61 billion (US$3.8 billion) over the same duration, showcasing a growth of 3.3% compared to the same period last year. The third quarter sales reportedly grew by 6.4%, with F&B reporting high single-digit percentage organic growth.

“In the third quarter, Symrise was able to seamlessly continue the positive sales trend of the previous months. Despite high inflation and sustained volatility in our markets, we are also optimistic for the rest of the year and expect robust demand,” says Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.

“Our diversified portfolio and broad international positioning will also help us this year to capitalize on our growth potential and create sustainable value. We are targeting continued organic growth of 5 to 7% and an EBITDA margin of 20% to 23%.”

F&B drives momentum
The business units that boosted the company’s finances were sweet and savory products and beverages. 

Region-wise, the EAME and Latin America contributed to appreciable growth, with the Naturals business unit also thriving in the Asia/Pacific and Latin America.

The Pet Food division exhibited single-digit percentage organic growth.Symrise’s Taste, Nutrition & Health segment went up organically by 9.5% in the first nine months. In the third quarter, organic growth stood at 6.0%. 

Further, based on account portfolio and exchange rate effects, the segment’s sales in the first nine months increased to €2.3 billion (US$ 2.4 billion).

Moreover, the company’s acquisition of China’s Wing Biotechnology last year was conducive to a €21 million (US$22.2 million) growth.

Moving to the Pet Food division, the section recorded a single-digit percentage organic growth, while the EAME and Latin America regions showed double-digit percentage growth. 

Animal food sales in France, Poland, Brazil, Colombia and Mexico also progressed dynamically.

The probiotics business recorded a slight dip in sales in the first nine months, mainly due to lower demand in the North America and EAME regions.

In August, Symrise achieved a sales increase of 6.8% to €2.4 billion (US$2.6 billion) for the first half of 2023.

The ingredient supplier has verified its growth and profitability targets while extending its long-term growth objectives until 2028. 

Regional statistics
Symrise witnessed the highest organic growth from Latin America and EAME (Europe, Africa, Middle East) areas, at 16.0% and 15.1% respectively.

The Asia/Pacific region pulled off an organic growth of 3.5%, led by the food and beverage division and fragrance and cosmetic ingredients divisions.

North American sales endured a setback due to the production shutdown at Colonel Island. They were down by 3.4% compared to the same period of the previous year.

Making strong strides
Symrise has been trying to drive its innovation and business moves to cater to today’s demanding consumers.

Symrise recently unveiled its facility in Singapore aimed at naturalness innovation (Image Credit: Symrise).For instance, earlier this month, Food Ingredients First reported the company’s new “Enhanced Naturals @SPark” hub in Singapore dedicated to naturalness innovation, which aims to cater to consumers’ concerns over plant-based foods being ultra-processed.

Last week, it also launched its brand Set Flavors, which leverages a combination of technologies to source, enrich, decode and transform value from nature to create eco-friendly upcycled flavors.

The company is also addressing the in-demand plant-based food market through its chickpea and aquafaba ingredients that offer a vegan alternative to egg yolk, with chickpea flakes providing enhanced nutrition.

Further, it recently also set up a highly automated pet food palatants production facility in Chapéco, Santa Catarina, Brazil, to focus on pet food quality and safety.

Encouraged by the progress, Symrise has extended its long-term targets. By 2028, the company plans to increase Group sales to €7.5 billion (US$ 7.9 billion) to €8.0 billion (US$ 8.5 billion), supported by annual organic growth of 5% to 7% (CAGR) and targeted acquisitions. 

By Insha Naureen