Symrise Shows Strong Business Development in Q1/2013
07 May 2013 --- Symrise AG has begun Fiscal Year 2013 with impressive growth. The Group saw dynamic demand in both divisions and increased sales to €458 million in the first quarter of 2013 (Q1 2012: €433 million).
This corresponds to a growth of 6% (8% at local currency) compared to the prior-year-quarter. Symrise improved its earnings before interest, taxes, depreciation and amortization (EBITDA) to €93 million and was highly profitable with an EBITDA margin of 20.3%.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: “Symrise is celebrating its ten-year anniversary in 2013. The start to our anniversary year was a complete success: Once again, we enjoyed robust growth – growing faster than the market. Along with solid development in Emerging Markets, we also benefited from considerable growth impetuses in the established markets. Our profitability remained at a good level with an EBITDA margin of 20.3%. With the acquisition of the US fragrance manufacturer Belmay, we took another strategic step towards further expanding our product portfolio and market presence in North America. We are therefore confident for the upcoming months of 2013.”
Symrise increased Group sales by 6% in the first three months to €458 million (Q1 2012: €433 million). At local currency, this amounts to 8% growth. In addi-tion to good utilization rates in both divisions, the Group benefited from the ex-pansion of its menthol capacities which was realized in 2012; the new capacities will make full contributions to growth this year.
At regional level, Symrise realized its strongest sales increase in Asia/Pacific with 9% growth (12% at local currency). The second largest gains were made in North America, with a sales increase of 8% (9% at local currency). The EAME region made a pleasing recovery, particularly in the Emerging Markets of Eastern Europe, and expanded at a rate of 4% (5% at local currency). Latin America, which grew at an above-average rate in the previous quarters, in-creased its sales by 3% (10% at local currency).
The positive sales developments are also reflected in the earnings performance. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 6% to €93 million during the reporting period (Q1 2012: €88 million). The EBITDA margin amounted to 20.3% (Q1 2012: 20.3%) and Symrise was therefore once again among the most profitable companies in the industry.
Net income for the period rose by 7% to €46 million (Q1 2012: €43 million). Earnings per share correspondingly rose to €0.39 after €0.36 in the first quarter of 2012.
Cash flow from operating activities amounted to €26.0 million (Q1 2012: €19.7 million) and particularly reflected the high utilization rates seen in the first quar-ter. The ratio of net debt including pension provisions to EBITDA remained nearly unchanged from the end of 2012 at 2.5. It therefore is within the targeted corridor of 2.0 to 2.5.
Symrise also benefited from the steady expansion of its presence in Emerging Markets during the first quarter. Sales in these markets increased by 11% at local currency. The Group generated 48% of its total sales (Q1 2012: 46%) in Emerging Markets.
Flavor & Nutrition generated sales of €213 million in the first quarter of 2013 (Q1 2012: €208 million). This corresponds to an increase of 2% (4% at local currency).
Every application area contributed to this growth, with beverages and sweets making particularly solid gains. The Emerging Markets also made significant contributions.
Asia/Pacific was the strongest growing region, with sales up 8% at local currency. The region particularly benefited from high demand in the beverage segment as well as a snack food initiative started last year. The second strongest region was North America, which posted a sales increase of 4% at local currency. In Latin America, performance was more moderate following above-average growth in the previous two years. Sales rose 3% at local currency and were especially influenced by high demand from global and regional customers for savory products and sweets. The EAME region posted good growth, particularly in the country markets of Eastern Europe. Sales in the region rose by 3% at local currency.
Flavor & Nutrition increased its EBITDA by 3% to €43.9 million (Q1 2012: €42.6 million). The EBITDA margin increased from 20.5% in the previous quarter to 20.6%.
For Fiscal Year 2013, Symrise is expecting an advantageous development in consumer confidence. Even though, some European countries continue to be impacted by the Euro crisis, Symrise expects to see an overall positive economic climate in its sales markets. Accordingly, the Group is aiming to once again outperform the growth of the global fragrances and flavors market, which is expected to expand by between 2 and 3%.
Along with the publication of its results for Fiscal Year 2012, Symrise published a long-term outlook for the first time. Compared to the 2012 figures, the Group aims to increase sales by €1 billion until 2020. This corresponds to an average annual sales growth (CAGR) of 5 to 7%. Symrise also remains committed to profitable growth. The Group aims to increase its EBITDA to more than €500 million by the end of 2020. The EBITDA margin should be within the range of 19 to 22%.
