Symrise exceeds targets with 12% sales growth

16 Mar 2017

Symrise has announced that it exceeded its targets for the fiscal year 2016, saying that it benefited from strong demand across all segments and regions. Sales were up by 12% to €2,903.2 million.

Symrise exceeds targets with 12% sales growth

Symrise has announced that it exceeded its targets for the fiscal year 2016, saying that it benefited from strong demand across all segments and regions. Sales were up by 12% (local currency: 16%) to €2,903.2 million (2015: €2,601.7 million). Normalized earnings before interest, taxes, depreciation and amortization (EBITDAN) grew by 9% to €625.2 million (2015: €572.2 million).

"In the fiscal year 2016, Symrise continued with its highly dynamic and profitable growth course while making targeted investments to expand its portfolio, competencies and capacity,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “Furthermore, we expanded our business segments to give them more flexibility. With our advanced and unique structure, we are able to best possibly address future customer needs and identify market opportunities early on. This foresight has been a defining feature of our approach for more than a decade and gives us a clear competitive edge. We want our shareholders to participate in this success. At the Annual General Meeting, the Executive Board and Supervisory Board will propose a dividend of € 0.85 per share for the fiscal year 2016.”

“For 2017, we remain optimistic despite political changes and tensions in some countries. We have a presence in more than 40 countries, a widely diversified portfolio, and highly engaged employees. We aim at continuing our highly profitable growth course and remain one of the leading companies in our industry."

Sales in the Flavor segment increased by 4% to €1,015.9 million (2015: €980.2 million). In local currency, sales grew by 10%. At €233.8 million, EBITDA for the reporting period was significantly higher than in the previous year (2015: €218.9 million). The EBITDA margin improved significantly to a very good level of 23.0% (2015: 22.3%).

All regions achieved substantial growth. The segment benefited in particular from strong gains in the application areas of sweets and beverages.

Nutrition posted a 5% plus in sales to €576.0 million (2015: €547.8 million). At local currency, sales grew by 9%. Excluding portfolio effects, the segment achieved a 10% organic increase in sales in local currency. In the Diana division, the biggest contributions came from pet food applications, where sales increased substantially in all regions.

Symrise also added new competencies in the Nutrition segment through acquisitions in 2016. In January the Diana division acquired a majority stake in the Dutch company Scelta Umami Holding BV. The Group specialized in the manufacturing and distribution of mushroom concentrates. In May, Diana also acquired Nutra Canada, whose products include in particular fruit and plant extracts with supplementary functional benefits. The business unit Probi acquired Nutraceutix, an important supplier and manufacturer of probiotics in North America.

During the reporting period, the Nutrition segment increased its EBITDA to €133.7 million (2015: €122.0 million). The EBITDA margin reached 23.2% (2015: 22.3%).

The economic environment in the current fiscal year is expected to be more challenging than in the previous year, the company said. It appears likely that the geopolitical tensions between certain states will persist, and some countries will continue to struggle with debt. With its global presence, however, Symrise believes that it is well positioned to balance out the regional differences. Symrise also expects to overcome the volatility of various raw material prices to a very large extent through its broad access, in particular to natural ingredients, and through its backward integration in key raw materials.

Consequently, Symrise said it is optimistic that it will continue its sustainable profitable growth in 2017, again aiming to substantially outperform the relevant market, where growth of around 3% is forecasted. It also intends to remain highly profitable with an EBITDA margin of around 20%.

Symrise concluded its statement by saying that it remains fully committed to the mid-term objectives extending to the end of 2020, namely a compound annual growth rate (CAGR) in the range of 5 to 7% and an EBITDA margin of between 19 and 22%.