Symrise’s “double-digit organic growth” bolstered by beverages and savory segments
02 Aug 2022 --- Symrise has revealed a “strong increase in sales and profit” in the first half of 2022 with organic sales growth of 10.2%. Taste, Nutrition & Health achieved organic sales growth of 12.7%. In the Food & Beverage divisions, increased leisure activities and growing out-of-home consumption led to good demand for beverage and savory products.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 15.7% to €486 million (US$497.5 million) compared to the same period in the previous year.
The group’s profitability reached a good level of 21.5%, slightly below the previous year’s figure of 22%, mainly due to higher raw material and operating costs. At €229 million (US$234.4 million), net income for the first six months exceeded the previous year’s figure of €196 million (US$200.6 million) by 16.6%.
“In a volatile business environment, we managed to continue on our profitable growth course,” says Dr. Heinz-Jürgen Bertram, CEO, Symrise.
“We achieved this by relying on our robust business model, diversified application portfolio and broad regional presence and customer base. Demand increased significantly in many areas. Solutions for beverages and food have also performed very well and considerably contributed to the double-digit organic growth.”
Taste, Nutrition & Health achieved organic sales growth of 12.7% in the first half of 2022.In light of its performance in the first half of the year, Symrise has reaffirmed its growth and profitability targets and continues to expect to grow faster than the market.
The company targets organic sales growth of significantly above 7% in 2022. Profitability will remain high, with an EBITDA margin of around 21%.
The sharp rise in inflation in recent months has led to further cost increases at Symrise. The company is countering this development by consistently increasing prices for its customers.
As a result of the Russia-Ukraine war, rising raw material prices and ongoing global supply bottlenecks, Symrise considers itself “well-positioned to continue on its profitable growth path.”
Growth highlights
The Symrise Group achieved sales growth of 18.5% in the first half of 2022.
The acquisition of the Fragrance and Aroma Chemicals business of Sensient, the acquisitions of Giraffe, Schaffelaarbos, Groupe Néroli and Romani, and the sale of the Velcorin and color business exerted a positive impact on sales development totaling €59 million (US$60.3 million).
Taste, Nutrition & Health achieved organic sales growth of 12.7% in the first half of 2022.
The positive net effect of the acquisitions of Giraffe and Schaffelaarbos and the divestments of the Velcorin and color businesses totaled around €34 million (US$34.8 million).
The company recorded its most substantial growth rates in the Latin America, Asia/Pacific and EMEA (Europe, Middle East and Africa) regions. The Sweet business in the Latin America region reported high double-digit percentage growth. The Naturals business unit strongly expanded its sales, particularly in North America.
EBITDA for the Taste, Nutrition & Health segment amounted to €315 million (US$322.4 million) in the reporting period and thus increased by 22.2% compared to the same period of the previous year.
The increase related to profitable sales growth, the acquisitions made and a positive one-time effect from the sale of the Velcorin business.
Market volatility
The consequences of the COVID-19 pandemic and the ongoing war in Ukraine have so far impacted the business development of Symrise only to a minor degree, the company underscores.
Meanwhile, the disruption of supply chains and the availability of raw materials have exerted a noticeable impact on the procurement markets. They have led to price increases for raw materials, some of which are significant.
Edited by Elizabeth Green
