Symrise Sales Soar
03 Nov 2016 --- Following on from its recent nomination as Most Sustainable Corporation of 2016, Symrise AG has something else to celebrate - sales in the first nine months of the year are up 16 percent, topping two million euros.
The Group increased sales to €2,192 million (US$24.3 million) as the German-headquartered company cites “dynamic expansion and strong portfolio growth” as two reasons for the robust sales and is optimistic for the full year 2016 results.
Earnings before interest, taxes, depreciation and amortization, normalized for one-time effects from the acquisition and integration of Pinova Holdings Inc. The German flavors and fragrances company has a significant presence in the US after buying Pinova Holdings, the US maker of perfume ingredients from natural sources for the food and beverage industry around US$400m last year. EBITDAN were up 7 percent to €480.3 million (US$533.7 million).
Symrise says that despite the first-time inclusion of the Pinova Group since the first quarter of 2016, it has maintained profitability at a very good level and achieved an EBITDAN margin of 21.9 percent.
"After the dynamic expansion of our business and the strong, profitable growth in the first nine months, we are anticipating the final spurt in 2016 with optimism. We will use the remaining weeks to push ahead with our innovations, maintain our market presence and align our products with our customers' needs. We confirm our aspiration for 2016 to grow faster than the market, to operate our business in a highly profitable way and thus to remain among the industry leaders,” says Symrise AG CEO Dr. Heinz-Jürgen Bertram.
Breaking down the sales growth, the company says during the first nine months of the year, Symrise increased its sales by 11 percent to € 2,192.3 million (9M 2015: € 1,977.0 million). In local currency, the increase amounted even to 16 percent. Both segments had a substantial impact on this strong performance. Purchased activities also contributed to sales, including those of the Pinova Holdings and those of Scelta Umami and Nutra Canada. Even without these additional contributions, the Group achieved significant organic sales growth of 8 percent in local currency.
Regionally the strongest growth was in Latin America where sales increased 34 percent in local currency, with North America (27 percent) coming in second and Asia-Pacific achieving a 12 percent increase in sales, followed by EAME (European, African, Middle Eastern) with an increase of 7 percent. Symrise recorded strong growth in emerging markets as well where sales were 17 percent higher in local currency, accounting for 43 percent of the Group’s total sales.
Flavor & Nutrition
The Group says profitability for flavor and nutrition is at a new record level, achieving a sales growth of 3 percent and was up 9 percent in local currency. This was largely due to strong demand for sweets and culinary application as well as a growing pet food segment.
The final spurt for 2016 will be impacted by economic instability and political tensions in some countries, but Symrise is confident the fourth quarter of 2016 will be strong.
“The Group therefore remains committed to its 2016 objective of growing faster than the global flavors and fragrances market, which is estimated to grow by about 3 percent this year. Symrise also confirms its target of an EBITDA margin of above 20 percent. The Group is furthermore fully committed to its medium-term targets for the fiscal year 2020: A compound annual growth rate (CAGR) of 5-7 percent and an EBITDA margin of 19-22 percent.”
