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Double-Digit Growth in all Regions Boosts Symrise 1H 2010
Posted: August 10, 2010
Driven by a general improvement in the world economy, new orders, product launches and strength in emerging markets (now accounting for 46% of sales), Symrise (Holzminden, Germany) has reported double digit growth in every region, leading to first half 2010 sales of €797.5 million, up 16.4% from €685.1 million in the same period 2009. Growth by region was as follows: Asia/Pacific, 21%; Latin America 20%; Europe/Africa/Middle East (EAME), 15%; and North America, 14%. Sales with top 10 customers rose by 15% at local currency, accounting for 30% of total sales. Group EBITDA for the period rose 50% to €177.7 million, while group EBITDA margin reached 22.3%. For full year 2010 the company now expects to grow sales by "at least" 8%.
Boosted by beverage and sweet categories, flavor and nutrition sales for the period totaled €385.6 million, up 12.9% from the previous year, and posted an EBITDA margin of 23.9%. Sales with the top 10 customers grew by 16.7% at local currency. Growth (local currency) by region was as follows: Latin America, 21%, driven by beverages and sweets;Asia/Pacific, 14%, boosted by beverages; North America 13 %, led by top customers; and EAME, 8%, which experienced positive trends in both Western and Eastern Europe.
Led by key customers (up 12.8% in local currency), fine fragrance, personal care, scent and care sales totaled €411.9 million, a gain of 19.9% year-over-year. Sales rose in the double digits in EAME, North America and Asia/Pacific, and by 9% in Latin America.
Of the results, CEO Heinz-Jürgen Bertram said, “We successfully capitalized on the economic recovery and enjoyed above-average growth in the first half of 2010. Our customers’ order patterns have normalized again compared to 2009 and we were in particular able to expand our business with our key customers. Our regional diversification and our special focus on emerging markets are also paying off: we’ve seen considerable growth in all regions and are meanwhile generating 46% of sales in emerging markets alone. The encouraging developments of the first six months have given us cause for optimism for the second half of 2010. At the same time, we continue to keep an eye on market developments. We aim to grow faster than the market as a whole and are currently forecasting at least 8 % sales growth at local currency. We will also continue to vigorously implement our core strategic goals: We will further sharpen our profile, while particularly focusing on the two application areas life essentials and consumer health.”