Symrise Q3 financial results boosted by organic growth in taste and nutrition division
26 Oct 2022 --- Symrise has unveiled its financial data for the third quarter of the year, revealing a “much stronger than expected” organic growth across sections driven by its taste, nutrition and health segment, which has benefited from strong out-of-home consumption that led to increased demand for beverage and savory products.
After the first nine months of the year, Symrise recorded organic sales growth of 11.3% and Q3 organic growth of 13.6%. It accelerated from an already double-digit growth second quarter that expanded bolstered by beverages and savory segments.
“In a still challenging and volatile market environment, we once again managed to continue our growth course. Our diversified portfolio as well as our broad regional presence and customer base were key factors in achieving this,” says CEO, Dr. Heinz-Jürgen Bertram.
“Furthermore, materially increased demand in our core competencies, such as cosmetics and pet food, has contributed to significant organic growth. We were also able to further accelerate our growth by acquiring Giraffe Foods, Schaffelaarbos, Wing Pet Food, Néroli and Romani, which significantly strengthened our product range,” he continues.
By region, Latin America led the organic growth of the company during the third quarter (26.7%), followed by North America (15.6%), Asia/Pacific region (13.9%) and EAME (8.1%).
Taste, Nutrition and Health take the stage
With a year-to-date increase of 14.5% and an even faster organic growth of 18% in the third quarter of the year, the food division of Symrise is driving the growth of Symrise.
North America and Latin America recorded the strongest growth rates. Notably, in the Latin America region, the sweet business had double-digit percentage growth and the strongest increase in sales for the Naturals category, flags the company.
With a year-to-date increase of 14.5% and an even faster organic growth of 18% in the third quarter of the year, the food division of Symrise is driving the growth of Symrise. 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.
The company’s IP portfolio includes optimizing sweet taste profiles and rebalancing mouthfeel in sugar-reduced products. This also includes a diverse range of solutions for saltiness, umami, masking, mouthfeel and sensations.
Furthermore, the business also has had double-digit percentage growth for its Pet Food division in all regions.
Long term prospects
Symrise targets to increase sales by 5 to 7% CAGR until 2025, despite macroeconomic volatility.
Disruption of supply chains and the availability of raw materials have significantly impacted the procurement markets. Leading to price increases for raw materials, some of which are significant.
The sharp rise in inflation in recent months has led to further cost increases at Symrise. The company is countering this development by consistently increasing prices for its customers.
“Despite the uncertainties resulting from the war in Ukraine, increasing raw material prices and ongoing global supply bottlenecks, Symrise is well positioned to continue on its growth path,” flags the company.
Edited by Marc Cervera
