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Symrise reports accelerating growth

16 Aug 2018

After what the company describes as a “dynamic” start to the year, Symrise has reported that it accelerated its organic growth course in the second quarter, showing 10.6% growth.

After what the company describes as a “dynamic” start to the year, Symrise has reported that it accelerated its organic growth course in the second quarter, showing 10.6% growth. All segments and regions contributed to this positive development. Group sales rose by 9.0 % in the first half of 2018. Taking into account portfolio and exchange rate effects, sales grew by 4.0 % to €1,575.5 million (H1 2017: €1,515.3 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to €317.1 million (H1 2017: €322.9 million). The EBITDA margin remained at 20.1 %. Against the background of this positive business performance, Symrise is refining its outlook for 2018: the group now expects an increase in annual sales above the medium-term target corridor of 5 to 7 %, thereby growing significantly faster than the market.

“Symrise took advantage of the momentum in the second quarter and significantly expanded business in all segments. Our comprehensive backward integration is proving to be a great asset. Also with a shortage of certain key raw materials for fragrance compositions, we were able to supply our customers reliably,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “We are moving into the second half of the year from a strong position. Targeted investments in research and development, sales strength and capacity expansions are driving our growth. Therefore, we are raising our sales forecast for the current fiscal year: We expect organic growth above our medium-term target corridor of 5 to 7 % and will therefore significantly exceed market growth.”

Flavor achieved strong organic sales growth of 10.9 % in the reporting period. All regions and application areas significantly expanded their sales. The segment also benefited from new business with vanilla and the high price level of vanilla applications. Considering exchange rate effects and the Cobell acquisition, the segment’s sales grew by 9.0 % to €604.7 million (H1 2017: €554.8 million).

In the EAME region, the Flavor segment achieved double-digit organic growth rates. Significant growth impetus came mainly from applications for Sweets and for Savory in Western Europe and Russia.

The Asia/Pacific region recorded high single-digit, and for some areas even double-digit, growth rates across all application areas. The markets of China, India, South Korea and Singapore developed particularly well.

Latin America also showed a very good development with organic growth rates in the upper single-digit range. Sweets and Savory performed especially well, achieving double-digit growth in Argentina, Brazil and Mexico.

The North America region achieved double-digit organic sales growth rates as well and therefore also showed a very positive development. The first half of the year was particularly dynamic in the Beverages application area.

EBITDA in the Flavor segment increased in the first half of 2018 by 3.3 % to €127.0 million (H1 2017: €123.0 million). At 21.0 %, the EBITDA margin remained at a very good level (H1 2017: 22.2 %).