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Symrise 1H Sales Up 7.2%; North America Shows Strongest Sales Growth
Posted: August 7, 2013
Symrise AG's first-half sales were up 7.2% in the reporting currency and North America was the region posting the strongest sales growth.
In the first half of 2013, Symrise increased sales by 7.2 % in the reporting currency to €934.7 million as compared to the year-ago period of € 871.6 million. At local currency, sales were up by 9.5%. With an increase of 14% at local currency, North America was the region posting the strongest sales growth. EAME, which was impacted last year, saw a good recovery and also achieved solid sales growth. Earnings before interest, tax, depreciation and amortization (EBITDA) rose to €191.2 million.
“In our operations, we continued at full speed," said Heinz-Jürgen Bertram, CEO of Symrise AG. "We introduced a number of new cosmetic ingredients and consolidated our powder mixing operations for flavor manufacturing under one roof at our headquarters in Holzminden; we also brought additional capacities into operations."
The second largest sales gains were made in Asia/Pacific, with a sales increase of 10% (13% at local currency). Compared to the previous year, notably improved figures were recorded in EAME: the region achieved sales growth of 5% (6% at local currency) thanks to especially good dynamics in Eastern Europe. As expected, Latin America developed modestly compared to its above-average growth in previous years, realizing a sales growth of 3% (10% at local currency).
The Scent & Care division expanded its business in every region and boosted its sales to €490.3 million. Compared to the prior year period, this corresponds to a sales increase of 10.3 % (12.5 % at local currency). The production capacities for menthol, which were expanded in 2012, have been well utilized, the company said. Scent & Care also benefited from high demand in the areas of oral care and fine fragrances as well as cosmetic ingredients.
Flavor & Nutrition increased sales by 4% to €444.4 million (up 7% at local currency). Applications for culinary products and snacks as well as consumer health particularly benefited from high demand. The strongest growth for this unit was recorded in Latin America with a sales increase of 13% at local currency. The second-strongest region was Asia/Pacific, which posted 9% growth at local currency. Sales in North America were up by 8% at local currency, despite high figures from the previous year. The EAME region continued its positive developments from the first quarter and increased sales by 4% at local currency. Ample demand in emerging markets of Eastern Europe as well as in the established Western European markets contributed to the good growth. To the contrary, demand was weaker in Southern European countries.
Symrise also confirmed its goal for 2013 to exceed growth of the global market for fragrances and flavors, which is estimated to be between 2% and 3%. The group wants to achieve an annual sales growth (CAGR) of between 5% and 7% with an EBITDA margin between 19% and 22% set for its 2020 fiscal year goals.