Symrise Grows Twice as Fast as the Market
15 January 2008
Symrise AG continued to develop successfully in the third quarter of 2007 and is optimistic about 2007 as a whole. In addition to achieving high growth rates, the company managed to increase earnings even more than sales thanks to effective cost management.
Based on local currencies, sales in the first nine months of the 2007 financial year increased by 6.9 percent and therefore grew twice as fast as the flavors and fragrances market. This was attributable primarily to strong growth in the emerging countries as well as to the business with functional products for fast-growing market segments like beauty, health, wellness and convenience. On the basis of current exchange rate developments, sales rose by 4.7 percent, from €944.4 million to €989.2 million.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased far more, by 13.9 percent from €192.2 million to €219.0 million. The EBITDA margin improved from 20.3 percent to 22.1 percent as a result; this continues to put the company among the leaders in its industry.
The scent & care division increased its sales in local currencies by 8.5 percent in the first nine months of 2007. At current exchange rates, sales were up 6.0 percent at €521.8 million. The flavor & nutrition division achieved sales growth of 5.2 percent in local currencies; at current exchange rates, the sales increased by 3.4 percent to €467.4 million. Both divisions succeeded in increasing sales with key accounts, with Scent & Care raising sales with its top ten customers to a larger extent compared with divisional sales.
"We are delighted about the successful development of the business in the first nine months and are optimistic about 2007 as a whole. Our Scent & Care division, for example, managed to obtain business with customers that had only been accessible to us with great difficulty in the past, if at all. By sales growth and profitability, Scent & Care is now one of the leading players in this industry. Flavor & Nutrition generates a larger proportion of its sales in the fast-growing emerging markets than in Western Europe in the meantime. This means that Symrise is very definitely a globally positioned company," says Dr Gerold Linzbach, CEO of Symrise AG.
The net income for the period more than tripled in the first nine months of the current financial year, from €19.0 million in the same period the previous year to €84.3 million in the period under review. Earnings per share also rose, from €0.23 to €0.71.
In view of the very encouraging development of the business, Symrise AG is optimistic about 2007 as a whole: sales growth on the basis of local currencies will reach the top end of the five to six percent forecast up to now. The EBITDA margin will be at or even slightly above 21 percent. A dividend payment is planned for the first time for 2008. A ratio of 30 to 35 per cent of Group profits in 2007 is scheduled for this.
