News

Symrise reports "substantial increases"

12 Aug 2016

Symrise says that it determinedly continued its successful course in the second quarter of 2016 and achieved substantial increases in sales and earnings, benefiting from strong demand in both segments.

Symrise says that it determinedly continued its successful course in the second quarter of 2016 and achieved substantial increases in sales and earnings, benefiting from strong demand in both segments. Growth was driven by US-based Pinova Group, consolidated since the first quarter.

In the first half year, Symrise increased its sales by 10% (local currency: 16%) to €1,462.5 million (H1 2015: €1,330.8 million). EBITDA without special items from the Pinova acquisition and integration increased year-on-year by 8% to €323.3 million (H1 2015: €300.3 million).

"After the successful first half year, we are completely on track,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise. “We have seized opportunities and substantially increased our sales and earnings. Moreover, with a clear goal in mind, we have implemented a number of strategic initiatives to diversify our portfolio. We have added to our competencies, both in the flavours and fragrances business, which we intend to leverage in order to further strengthen our status as a market leader. Despite the political and economic volatility in some countries, we confidently look ahead to the second half of the year. In both segments we anticipate strong demand and again in 2016 we intend to outperform the global flavour and fragrance market."

Flavor & Nutrition achieved a 1% increase in sales (local currency: 8%) to €794.8 million. As in the previous quarter, growth was driven particularly by strong demand for savoury and beverage applications as well as pet food. Flavor & Nutrition grew its EBITDA to €183.1 million (H1 2015: €176.1 million).

After the successful first half, Symrise said it is confidently looking ahead to the second half of the year. Despite the political and economic volatility in some countries, the group expects demand and growth dynamics to be generally strong. Therefore, Symrise confirmed its objective of outperforming the global flavour and fragrances market, which is estimated to be growing at an annual rate of 2-3%. Despite the volatility of certain exchange rates, Symrise said it aims to be among the most profitable companies in the industry. Consequently, Symrise has adjusted its profitability target and is now aiming for an EBITDA margin of above 20%.

The group said it also remains fully committed to the medium-term targets it has set until the fiscal year 2020: a compound annual growth rate (CAGR) in the range between 5 and 7% and an EBITDA margin between 19 and 22%.