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Growth in All Divisions, Regions for Symrise Q3, Three-Month 2010
Posted: November 9, 2010
Boosted by both mature and emerging markets, Symrise (Holzminden, Germany) has reported that sales for the first three quarters of 2010 totaled €1,207.7 million, a gain of 16.4% year-over-year. Asia-Pacific grew 23% during the period, with growth in all categories. Latin America grew 19%. North America sales rose 17%, driven by gains in fine fragrance and household categories. Europe, Africa and the Middle East sales rose 13%, led by demand for products under the Life Essentials business unit.
Overall, the company made progress on key core lists as results were boosted by increased consumer and customer demand and high production capacity utilization. According to the company, raw material costs have remained flat year-over-year.
The company's EBITDA grew by 40% to €267.7 million during the period; EBITDA margin rose to 22.2%. Net profit for the period grew by 81% to €127.3 million. Cash flow from operating activities totaled €155.6 million.
Of the results, CEO Heinz-Jürgen Bertram said, “Our broad international presence and firm foothold in emerging markets have paid off once again. Business with global customers in both divisions is growing at an above-average rate. The scent and care division in particular benefits from an increased demand in the luxury segment. In view of the excellent development of business during the first nine months, we are confident that Symrise will achieve its goals set for the full year. We are keeping our strategic objectives firmly in focus. We plan to further sharpen the profile of Symrise and place special emphasis on the development of new products in the rapidly growing segments of Life Essentials and Consumer Health. We will also continue to expand our presence in emerging markets.”
Scent and Care
Scent and care sales grew by about 20% to €621.8 million, driven by strong demand in all application areas, notably fine fragrance and personal care. EBITDA rose 54% to €131.2 million; EBITDA margin increased to 21.1%. The division's sales gains with key customers rose 14.6% for the period. According to the company, major customers accounted for about 30% of group sales. The company has expanded its production capacity for perfume oils by 25% in the third quarter and launched new products in the application areas oral care and fragrance ingredients.
The division reported double-digit growth in all regions, though the company noted slowing growth for the period. Sales in Europe, Africa and the Middle East rose 17% (all percentages at local currency), during the period. North America sales rose 15%. Asia-Pacific sales climbed 13%. Despite a slowing growth rate, Latin America sales rose 11%.
Flavor and Nutrition
Flavor and nutrition sales, led by gains in sweets and beverages and gains with local and international key customers, totaled €586 million for the period. EBITDA rose 29% to €136.5 million; the EBITDA margin was 23.3%. In addition to "dynamic" growth in Latin America, Asia-Pacific sales rose 13% (all percentages at local currency), driven by demands in beverages; North America and Europe, Africa and Middle East sales grew 9%. Sweet and savory categories drove sales in North America.
During the period, Symrise concluded new supplier contracts for vanilla flavors and seasonings in North America. In Europe, Africa and Middle East region, the division benefited mainly from the above-average growth rate for soft drinks and alcoholic beverages, among others from an increasing demand for mixed beer beverages.