Symrise Posts Strong Growth in the First Quarter

05 May 2015

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05 May 2015 --- Symrise AG got off to a good start for the fiscal year 2015, with a sales increase of 42% to €668m, up from €469m in the same period last year. The group reported that sales increases were driven by high demand in all segments, as well as the continued success of its purchase of Diana last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were up by 47 % to € 148.8 million (Q1 2014: € 101.0 million). With an EBITDA margin of 22.3 %, Symrise managed to improve its profitability compared to the same quarter last year (21.5 %) at a high level. Net income for the period also developed positively and increased by 31 % to € 68.0 million (Q1 2014: € 51.9 million).

Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: “We had an excellent start into the year. The strong growth across all segments and regions shows that we are ideally positioned with our clear strategy and unique set-up. Diana has more than fulfilled our expectations following its integration. But Symrise also achieved new records in terms of growth and profitability with its existing customer base. Despite uncertainties in individual markets, we remain confident for the coming quarters.”

At local currency, sales were up by 33 %. The Group increased sales in all regions and in both segments. This positive development was carried by both the sales contributions of Diana as well as strong organic growth of 14 % (6 % at local currency). The company benefited in this respect from overall solid capacity utilization and high demand in its core markets.

Cash flow from operating activities rose to € 68.4 million during the reporting period as a result of the positive business development (Q1 2014: € 49.4 million). The ratio of net debt including provisions for pensions to EBITDA amounted to 3.1 as compared to 3.2 as of December 31, 2014. With an equity ratio of 36 %, Symrise remains financially stable.

In the Emerging Markets, Symrise increased sales by 31 % at local currency. The share of the Emerging Markets within Group sales decreased slightly from 48 % to 45 %. The main reason for this development was the purchase of the Diana Group, which currently still generates the majority of its sales in the Developed Markets.

Flavor & Nutrition posted a sales growth of 79 % (70 % at local currency) in the first quarter, with sales totaling € 385.3 million (Q1 2014: € 215.0 million). Adjusted for consolidation effects from the Diana acquisition, sales in the segment increased by 11 % at local currency.

Sales, including those from the Diana Group, and high demand in the majority of markets contributed to the strong growth achieved in every region. Latin America was the region showing the strongest growth, generating an increase in sales of 132 % at local currency. Colombia, Argentina and Brazil recorded the strongest growth within the region. The second-strongest region was North America with a sales increase of 93 % at local currency. The region benefited in particular from higher demand in the Sweet, Beverages and Pet Food business units. The EAME region achieved a sales growth of 68 % at local currency in the first quarter. Sales could be expanded here, notably in Western and Eastern Europe as well as Africa. The Asia/Pacific region posted an increase in sales of 40 % at local currency during the period under review, mainly driven by the Beverages and Savory business units.

The Flavor & Nutrition segment managed to nearly double EBITDA compared to the same quarter of the previous year, rising to € 85.1 million (Q1 2014: € 43.0 million). The EBITDA margin improved to 22.1 % (Q1 2014: 20.0 %).

After a strong start into the year, Symrise is confirming its goals for the fiscal year 2015. The Group is again aiming to grow faster than the global market for fragrances and flavors in 2015 and to achieve an EBITDA margin greater than 20 %. Symrise expects the current fiscal year to maintain its currently solid demand dynamics across every region and in both segments. Against this backdrop, Symrise is also confirming the Group’s medium-term targets.