Symrise closes 2022 with string of investments amid a turbulent market

23 Jan 2023 --- Symrise has reported double-digit organic growth of 11.4% in a year marked by multiple investments, a business restructuring and sales growth, as the company has reaped the benefits of increased out-of-home consumption. However, it anticipates lower consolidated key figures than expected for the past 2022 fiscal year. The primary reason for this is an impairment loss of €126 million (US$137 million) relating to the interest in Swedencare AB, a leading manufacturer of premium products for pets, which Symrise recognized in the fourth quarter.

Despite this market-related impairment loss, the company “maintains its faith in the value and great potential of the Swedish company.”

“2022 was a very successful year for Symrise. We put our strengths to use to continue our growth course despite a volatile market environment. We also carried out acquisitions and interests that will pave the path for the future by expanding our know-how and diversifying our portfolio,” says Heinz-Jürgen Bertram, CEO of Symrise.

Symrise’s preliminary EBITDA for 2022 increased to €921.6 million (US$1.04 billion), up from €813.6 million (US$886.69 million) last year.

Investments and restructuring
The company has managed to accelerate its growth through a strategy of investments, purchasing EvodiaBio, Schaffelaarbos, Wing Pet Food, Néroli and Romani.

Furthermore, the business acquired Giraffe Foods, a Canadian-based producer of sauces, dips, dressings, syrups and beverage concentrates, in a bid to expand its customer base in North America.

Symrise also brought together different divisions under its strong Taste, Nutrition & Health (TN&H) business arm, following the consolidation of its TN&H segment earlier this year.

Moreover, the company is partnering with other industry players and research institutions to examine the factors that influence flavor release and sensory qualities of meat analogs.

Full-year strength
During the last published financials quarter results, Symrise reported double-digit organic growth in all regions except EAME (8.1%).

Symrise has reported growth in all regions, the company previously explained to FoodIngredientsFirst how it is exploring shifts in taste across broad geographies and age groups.

Notably, the company is working toward premiumization alongside naturality, health and climate-friendliness in its business formulation, as consumer flavor preferences and goals are constantly shifting.

The business explains that it has growth expectations in the near future, Symrise is reaffirming its long-term growth and profitability goals. 

The company remains confident that it will continue to grow at a faster pace than the relevant market and increase its average annual sales by 5% to 7% (CAGR). In the medium term, Symrise aims to achieve an EBITDA margin of 20% to 23% by the end of the 2025 fiscal year.

Edited by Marc Cervera