Symrise (Holzminden, Germany) released its first quarter 2011 financial results, noting highlights of a 6.6% sales increased to €416.8 million, along with an EBITDA increase to €85.2 million. Additionally, the EBITDA margin remains at 20.5% despite the increased cost of raw materials. The growth was driven by continued strong business with major customers, as well as activities in emerging markets, and Latin America in particular.
Heinz-Jürgen Bertram, CEO of Symrise, said, “As expected, markets have returned to more moderate growth following the extraordinarily strong year 2010. Thanks to our good strategic positioning we continue to benefit from the dynamic demand in important markets, especially the emerging markets in Asia and Latin America. With a 6.6% increase in sales we again outperformed the market. We maintained our EBITDA margin at over 20%; this demonstrates that we are able to successfully meet the challenges posed by raw material markets at present. We have set a good basis during the first quarter and are confident as we look to the coming months. However, uncertainties remain with regard to the political developments in North Africa and the Middle East, the effects of the natural disaster in Japan, and the price development on raw material markets.”
The company’s boosted first quarter 2011 group sales represented a 4.3% increase at local currency. Emerging markets accounted for 46% of sales, with Latin America contributing a 21% increase in sales (15% in local currency). Also, EAME sales rose 5%, and the established markets in Western Europe developed further as well. The Asia-Pacific increased sales by 11% (4% at local currency), where Symrise benefited from the demand for sweets and fine fragrances. However, compared to the first quarter 2010 numbers, sales in North America declined by 1% (-2 % at local currency).
In the scent and care division, the company also increased sales by 6.6% (4.2% in local currency) to €218.4 million, a rise from first quarter 2010’s €204.8 million. The segments of fine fragrances and aroma molecules enjoyed double-digit growth, with positive economic developments and the strong demand in the luxury segment especially noticeable in the fine fragrances segment. The scent and care division also benefited from increased business with major customers, as well as the launch of a number of skin care and cosmetic products in the life essentials segment. In Latin America, the division achieved strongest growth with a sales increase of 17% at local currency. In Asia, sales rose 4% at local currency, and in North America, it rose by 3% at local currency. With a 2% sales increase, the EAME region developed slower than the other regions.
For Symrise’s flavor and nutrition division, the company reported a 6.5% increase in sales over first quarter 2010’s €186.2 million, to €198.4 million. This corresponds to an increase of 4.5% at local currency, benefiting from increased demand in both established and emerging markets. The division also was able to build business with major customers and expand its product initiatives such as citrus and vanilla. The division grew strongest in Latin America with an increase in sales of 11% at local currency, and EAME was the second-strongest region with an increase in sales of 7% at local currency. Asia-Pacific reported 5% growth in sales at local currency. Unfortunately, North America was unable to maintain last year’s sales levels and went down by 9%.