Symrise AG Achieves Sales Increase in Flavor & Nutrition for 2011, Earnings Affected by Raw Material Costs

The company was able to remain highly profitable, despite rises in the cost of raw materials, with an EBITDA margin of 20 %. The company’s Flavor & Nutrition and nutrition sector generated reduced EBITDA of € 158.3 million (2010: € 170.4 million). Flavor & Nutrition saw an overall sales increase of 2 % to € 782.2 million (2010: € 767.4 million). Adjusted for exchange rate effects, this corresponds to growth of 3 %.

March 14 2012 --- German flavors and fragrances company Symrise AG said that its sales were up 2% throughout 2011 reaching €1.584 billion ($2.06 billion).

The company was able to remain highly profitable, despite rises in the cost of raw materials, with an EBITDA margin of 20 %.

The company’s Flavor & Nutrition and nutrition sector generated reduced EBITDA of € 158.3 million (2010: € 170.4 million). Flavor & Nutrition saw an overall sales increase of 2 % to € 782.2 million (2010: € 767.4 million). Adjusted for exchange rate effects, this corresponds to growth of 3 %.

Despite modest sales growth and the higher cost of raw materials, the EBITDA margin was maintained at 20.2 % (2010: 22.2 %).

The division benefitted above all from its business expansion and its strong position with global customers. The fastest growth rate came from Flavor & Nutrition in EAME, with a sales increase at local currency of 5 %.

The division generated new business both in developed Western European economies and in Emerging Markets. In Latin America the sales increase at local currency amounted to 2 % and reflects strong comparables, as well as the discontinuation of unprofitable businesses, and non-core activities in Mexico.

Compared to the strong development in 2010, sales growth at local currency in Asia/Pacific was also comparatively modest at 2 %. This was due to slower economic growth as the year progressed, especially in beverage applications. Whereas business in North America benefited from catch-up effects in the previous year, it was marked by the difficult market environment and delays in receiving customer orders in 2011.

Sales in the region fell by 2 % at local currency. In the course of adding innovative solutions for rapidly growing segments to the portfolio, Flavor & Nutrition developed new product solutions and expanded existing platforms in the Consumer Health business. The unit launched the new umbrella brand Actiplants, under which all functional botanical extracts are brought together.

In addition, Flavor & Nutrition expanded its research in the area of functional food and intends to add further expertise in 2012 as part of the expanded partnership with the Swedish company Indevex Biotech.

Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: “We held our ground well in 2011 and proved that we can also achieve our ambitious earnings targets in a weaker economic environment. Given the widespread turbulence in many regions of the world and high volatility on commodities and capital markets, maintaining profitability was the top priority for Symrise.

“We therefore consequently discontinued businesses which were not making a sustainable earnings contribution. And we continued our backward integration for strategic raw materials. Our industry-leading EBITDA margin of 20 % is thus the result of selective portfolio streamlining, intelligent raw material sourcing and restrictive cost management throughout the Group.”