Symrise Reports 2% Rise in 2013 Flavor & Nutrition Sales
10 Mar 2014 --- Symrise has reported record levels of sales and profitability for 2013, with overall sales up by 10%. The successful results, which saw sales increase by 10% in 2013, were driven by strong sales in most areas of the business but particularly through its expanded menthol activities and high demand for flavors in sweet and savory applications.
“In the 2013 fiscal year, Symrise again clearly outperformed the global market for flavors and fragrances,” explained Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “We achieved new records in sales and earnings despite a very volatile economic climate. We particularly benefited from our expanded menthol activities and from high demand for flavors used in sweet and savory applications.”
For 2013, which was its tenth anniversary year, the Group grew sales by 6 % to EUR 1,830 million (2012: EUR 1,735 million). In local currency, this corresponds to an increase of 10 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose considerably by 10 % to EUR 373 million (2012: EUR 339 million). In North America, Symrise achieved its strongest sales growth with 11 % (14 % at local currency). Alongside of organic growth, the Group also benefited from its acquisition of the US-American Belmay Group’s fragrance activities in March 2013.
Its Flavor & Nutrition division increased sales by 2 % to EUR 870 million in 2013 (2012: EUR 852 million). Adjusted for exchange rate effects, this growth amounted to 6 %. Every application area contributed to this growth, with sweet and savory products making the strongest contributions, as well as the Consumer Health application area.
Latin America recorded the strongest sales increase for the division with sales up by 15 % at local currency. The region benefited from strong growth in all flavor application areas. The second-strongest region was Asia/Pacific, which posted 7 % sales growth at local currency. Here, Flavor & Nutrition expanded its business, especially with savory products as well as in the Consumer Health area. In North America, the division increased sales by 6 % and benefited from considerable new business with selected customers. In the EAME region, Flavor & Nutrition posted even stronger growth than in the previous year, up 5 % at local currency. This was mainly driven by higher demand from Eastern Europe, Africa and the Gulf region. The mixing plant that opened in Holzminden this past June also provided further capacities and contributed to the result.
Flavor & Nutrition generated an EBITDA of EUR 178.6 million (2012: EUR 177.8 million). The EBITDA margin was 20.5 % (2012: 20.9 %) despite large investments into new capacities and sales units.
At the beginning of 2013, Symrise announced long-term targets for its business activities for the first time. The targets apply through the end of the 2020 fiscal year. The Group is aiming to increase sales by an average of 5 to 7 % annually (CAGR). In addition, Symrise is also striving to be among the most profitable companies in the industry. By the end of 2020, earnings before interest, taxes, depreciation and amortization (EBITDA) should amount to more than EUR 500 million. The EBITDA margin should be within the range of 19 to 22 %.
Symrise’s profitable growth course is based on three strategic pillars: The focused expansion of its business in established and particularly Emerging Markets, the constant improvement of its efficiency as well as innovations within the context of a diversified product portfolio. The Group links commercial success with sustainable business practices. Accordingly, Symrise aims to procure its most important natural raw materials from sustainable sources by 2020. Symrise also wants to further reduce its impact on the environment.
Symrise has entered fiscal year 2014 with positive economic expectations. The Group expects to grow in both divisions and to benefit from solid consumer demand.
