Symrise Group Sales Increase by 10% to EUR1.4 Billion
5 Nov 2013 --- Symrise AG continued its robust growth in the third quarter of 2013 with strong momentum. The Group increased sales to EUR 1,401.2 million in the first nine months of 2013; at local currency this translates into an increase of 10%. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 12% at local currency to EUR 290.2 million.
With an EBITDA margin of 20.7%, Symrise remains one of the most profitable companies in the industry. Both divisions and every region contributed to this positive performance. In the Emerging Markets Symrise was able to increase sales by 11% at local currency, thereby exceeding the Group’s overall growth rate.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG said: “Symrise has carried strong momentum into the second half of the year. We successfully left behind slight economic slowdowns, which occurred in certain markets. Along with high demand, our investments paid off: The new menthol capacities were well utilized and the US fragrance activities acquired at the beginning of the year provided an additional boost to our fragrance business. For the remaining weeks of 2013, we are confident on the continuation of Symrise’s robust development. We plan to once again grow faster than the market and end the fiscal year as one of the most profitable companies in the industry.”
In the first nine months of the current fiscal year, Symrise increased its sales by 6% in reporting currency to EUR 1,401.2 million (9M 2012: EUR 1,319.6 million). At local currency, this corresponds to a 10% increase. North America was the strongest region, generating sales growth of 15% at local currency. Symrise benefited from both, its existing business and the fragrance activities acquired from Belmay at the start of the year. Latin America was the second strongest region, posting a sales increase of 12% at local currency. The Asia/Pacific region came in third with a sales increase of 11%. Meanwhile, EAME was able to leave the difficult developments of the previous year behind – achieving solid growth of 7% at local currency.
Due to good utilization rates and ongoing cost management, the cost of sales was disproportionately low. Price decreases for certain raw materials also contributed to this positive development. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 10% (12% at local currency) in the first nine months to EUR 290.2 million (9M 2012: EUR 264.4 million). With an EBITDA margin of 20.7%, Symrise remained highly profitable during the reporting period.
Net income rose by 11% to EUR 139.9 million (9M 2012: EUR 125.9 million) in the reporting period. As a result, earnings per share rose from EUR 1.07 to EUR 1.18.
Cash flow from operating activities grew by more than 27.7% to EUR 176.2 million (9M 2012: EUR 138.0 million). The ratio of net debt (incl. pension provisions) to EBITDA amounted to 2.2 (December 31, 2012: 2.4). Symrise therefore has sufficient financial leeway to further implement its growth strategy.
Symrise also benefited from sustained strong momentum in the Emerging Markets. Sales in these regions were up by 11% at local currency and therefore exceeded the Group’s overall sales growth. The share of overall sales generated in the Emerging Markets totaled 48%.
Flavor & Nutrition increased sales by 2.5% during the reporting period to EUR 664.9 million (9M 2012: EUR 649.0 million). At local currency, this corresponds to a 6.2% increase.
The division benefited from especially high demand for products from the Sweet and Savory application areas. The Consumer Health business unit also developed positively. Regionally, Flavor & Nutrition achieved its greatest sales growth in Latin America with an increase of 16% at local currency. The second strongest region was Asia/Pacific with an increase of 7% at local currency, followed by North America which grew 6% at local currency. The positive developments from the first half also carried over in the EAME region. Solid demand was seen in the Emerging Markets of Eastern Europe, the Near and Middle East as well as in the established markets of Western Europe, which resulted in a sales increase of 4% at local currency for the region.
Flavor & Nutrition generated an EBITDA of EUR 139.0 million (9M 2012: EUR 140.9 million). The slight decrease compared to the previous year’s period can be attributed to the development of the sales organization in Asia/Pacific as well as costs related to new R&D projects. Despite these investments, the EBITDA margin of 20.9% (9M 2012: 21.7%) remains at a good level.
Thanks to the strong sales and earnings developments of the first nine months, Symrise has entered well-positioned into the fourth quarter. The Group expects sustained robust demand and positive market dynamics for all regions and in both divisions. As a result, Symrise is confirming its goal of once more growing faster than the global market for fragrances and flavors in 2013. Beyond this, Symrise aims to remain among the most profitable companies in the industry. The Group continues to strive for the objectives it set for the fiscal year 2020: Sales growth (CAGR) should amount to between 5 and 7% per year and the EBITDA margin should develop within the range of 19 and 22%.
