Symrise reports 6% sales increase as taste and nutrition segment shows significant growth
(Image credit: Symrise).
01 Aug 2024 --- Fragrance and flavoring supplier Symrise has reported a 6.3% increase in its group sales to €2.57 billion (US$2.78 billion), with its Taste, Nutrition & Health business achieving 10% organic growth in its first half-year results for 2024.
According to the company, the main drivers for overall profitability were “favorable material usage” and its efficiency program, which was initiated in the first quarter and implemented in the second. This generated 50% of Symrise’s target savings of nearly €50 million (US$54 million). Meanwhile, its organic growth was due to the positive performance of the company’s two segments - Taste, Nutrition & Health and Scent & Care.
Symrise’s Taste, Nutrition & Health segment achieved organic sales growth of 10.0 %, amounting to €1.5 billion (US$1.6 billion), an increase of 2.9 % compared to the same period last year. Strong growth was recorded in Europe, Africa, the Middle East and Latin America.
However, it also reveals the portfolio effect from the 2024 divestment of the UK beverage trading business by the Food & Beverage division had a negative impact of €16 million (US$17 million) on sales development.
Positive results for pet food
The Pet Food division was able to sustain its growth trend, with sales development in the Asia/Pacific and Latin America regions performing well, alongside Europe, Africa, the Middle East and Spain, Turkey and Belgium in particular. The segment’s EBITDA amounted to €348 million (US$375 million), an increase of 3.8 %.
Jean-Yves Parisot, CEO of Symrise AG, says: “Symrise is on course. I am committed to continuing Symrise’s success story – for the good of our customers, our shareholders and our employees. This is what we focused on in the past months.”
Symrise has confirmed that its growth target for 2024 is 5% to 7% (organic). (Image credit: Symrise).
“Despite our success in the first half of the year, we are not sitting back. Our good performance in recent months gives us confidence for the second half of the year. For this reason, we are therefore again confirming our growth and profitability targets for the full year.”
The company says it performed well despite a volatile market environment due to geopolitical tensions and “continued high inflation overall.”
Short and long-term ambitions
Symrise’s profitability, measured by the EBITDA margin of 20.7 %, was significantly higher than the previous year’s adjusted figure of 19.7 %. According to its report, earnings before interest, taxes, depreciation and amortization (EBITDA) rose to €530 million (US$572 million).
The company has confirmed that its growth target for 2024 is 5% to 7% (organic), with an EBITDA margin of around 20 %.
Longer-term, the company aims to increase its sales to €7.5 (US$8 billion) to €8 billion (US$8.6 billion) by 2028. It expects annual growth of 5 to 7% (CAGR), which targeted acquisitions are expected to contribute to. Its profitability (EBITDA margin) should remain within 20 to 23 %.
