Symrise Reports Sales Growth of 6.7%

In the first half of 2008 Symrise increased its sales by 6.7 percent on a local currency basis and therefore grew much faster than the market, which grew around 2.5 percent.

29/07/08 In a difficult environment Symrise managed to increase its sales in the first half of 2008 compared to the previous year and to maintain margins in line with last year. The management board expects for the full year 2008 a sales increase of 6-7 percent and an EBITA growth of 6 percent (both in local currencies).

In the first half of 2008 Symrise increased its sales by 6.7 percent on a local currency basis and therefore grew much faster than the market, which grew around 2.5 percent. This positive development can be attributed to high growth rates in the Emerging markets of Europe, Africa, the Middle East and Asia. Compared to the previous year, sales grew by 2.3 percent at actual rates from EUR 660.9 million to EUR 676 million.

The earnings (EBITA) for the first half of 2008 were up 6 percent in local currencies (up slightly in actual rates), increasing from EUR 123.1 million to 123.6 million. This increase was achieved despite significant increases in raw materials, energy and transportation costs.

These cost increases were partially compensated for by strong cost management and an ongoing programme of production efficiency improvements. The EBITA-margin stood at 18.3 percent.

Net profit increased by 16 percent at actual rates from EUR 52.6 million to EUR 60.8 million. Accordingly, earnings per share reached 51 cents compared to 44 cents in the respective period last year.

The development of the group was led by the good growth of Flavor & Nutrition. The division registered sales growth of 11 percent in local currencies, reaching EUR 333.3 million. At actual rates, this represents an increase of 7 percent. South America, showing a growth of 17 percent in local currencies, and Asia/Pacific, showing a growth of 15 percent in local currencies, especially contributed to this high growth.

Chr. Hansen, which was acquired in the second quarter of 2008, contributed sales of EUR 8.3 million. After integration costs, Chr. Hansen made an immaterial contribution to profit.

Due to global pressure on consumer spending in the second quarter, the Scent & Care division showed moderate sales growth of 2.5 percent in local currencies in the first half year, with sales at Euro 342.7million. While segments like Mint and Life Essentials continued to show strong growth, “luxury segments” like Fine Fragrances and parts of Personal Care had to contend with lower demand.

In order to compensate for the increased raw material and energy costs and in order to protect our margins going forward, the division announced selective price increases of 10 percent and more in early July.