Symrise profits rise despite inflation and volatility in core markets including taste, nutrition and health

08 Mar 2023 --- Symrise reports that it closed the 2022 fiscal year with another strong increase in sales and good profitability despite challenging economic conditions. A normalization in consumer behavior as the coronavirus pandemic subsides and the price increases Symrise introduced contributed to renewed strong sales in the Taste, Nutrition & Health segment.

The Group’s sales increased by 20.7% to €4.6 billion (US$4.8 billion). The German flavor and fragrance company reaffirms its long-term profitable growth path with its thirteenth dividend increase.

However, the company expects energy and raw material costs to keep rising.

“2022 was a very successful fiscal year for Symrise once again. We continued to grow profitably despite inflation and volatility in our core markets,” says CEO Dr. Heinz-Jürgen Bertram.

“We continued to develop our portfolio excellently through targeted acquisitions and strategic partnerships, including the acquisition of the French companies Néroli and Romani in France, Schaffelaarbos in the Netherlands, Wing Pet Food in China, and the investment in Swedencare, a supplier of premium products to the pet care market. 

“Our outlook for 2023 is correspondingly optimistic. We believe that we will continue to grow and create sustainable value in the current year,” he adds.

Symrise notes how consumer behavior has returned to normal following the COVID-19 pandemic.The Executive Board and Supervisory Board will propose increasing the dividend for the 2022 fiscal year to €1.05 per share (US$1.11) at the Annual General Meeting in May. 

Taste, Nutrition & Health
Symrise notes how consumer behavior has returned to normal following the COVID-19 pandemic.

Taking into account portfolio and exchange rate effects, sales increased by 24.8% to €2.9 billion. The positive net effect of the acquisitions of Giraffe Foods, Schaffelaarbos, and Wing Pet Food, as well as the disposal of the Velcorin and colors businesses, totaled around €99 million (US$104 million). 

Scent & Care 
In the 2022 fiscal year, the Scent & Care segment generated sales of €1,7 billion, 14.4% up on last year. 

Growth was driven in particular by strong demand for Fine Fragrances and cosmetic ingredients. 

Excluding portfolio and currency translation effects, sales increased by 5.1 %. The takeover of the Fragrance and Aroma Chemicals business of Sensient Technologies and the acquisitions of Néroli and Romani contributed around €55 million (US$60 million) to the segment’s sales. 

Sales performance
Latin America recorded the strongest organic growth of 24.7% in regions, followed by Asia/Pacific with 10.4%. The EAME and North America regions also delivered very good growth of 9.4% and 8.0%, respectively.

Earnings before interest, taxes, depreciation, and amortization (EBITDA), before deducting a one-off impairment loss on the associated company Swedencare booked in the fourth quarter, increased to €922 million (US$971 million), also significantly higher than last year’s figure of €814 million (US$856 million). 

Edited by Gaynor Selby