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Post Diana Acquisition, Symrise Announces First-half Results

Posted: August 7, 2014

Following its acquisition of Diana, Symrise AG announced sales of €942 million, compared to €935 million in the same period, 2013, a local currency increase of 6%. Earnings before interest, taxes, depreciation and amortization without special items (EBITDAN) increased by 9% to €209 million (same period, 2013: €191 million. Cash flow from operating activities totaled €109 million, compared to €77 million in the same period, 2013.

Market Breakdown
According to the company, Latin America recorded the strongest growth dynamics, while Europe, Africa and the Middle East (EAME) grew sales by 5%, and Asia/Pacific and North America increased sales by 6% and 4%, respectively.

Emerging market sales increased 9% at local currency rates; as a result, the share of group sales attributed to the emerging markets amounts to 48%. At local currency, the share is more than 50%.

Full-year Outlook
According to the company, "The Group further expects solid demand and a positive market development in all regions and in both divisions. For 2014 Symrise is furthermore confident to outperform local currency growth of the global market for fragrances and flavors. Furthermore, Symrise continues to aim at an EBITDA margin of more than 20% ... Symrise aims at an annual sales growth (CAGR) between 5% and 7% and an EBITDA margin between 19% and 22%."

Flavor and Nutrition & Diana Acquisition
Meanwhile, Symrise has closed its acquisition of Diana, which will operate as an independent division within the flavor and nutrition group.

According to Symrise, "Diana will be consolidated for the first time in the third quarter of 2014. Symrise will continue to report at the level of both Flavor & Nutrition and Scent & Care segments."

First-half local currency flavor and nutrition division sales increased 6% to €449 million, compared to €444 million in the same period, 2013. Highlights include:

  • EBITDA before special items: €99 million (first half 2013: €93 million)
  • Normalized EBITDA margin: 22.1% (first half, 2013: 20.9%)
  • Latin America sales growth: 12% at local currency
  • Asia/Pacific sales growth: 8% at local currency
  • EAME sales growth: 5% in local currency
  • North America sales growth: 3% at local currency

Scent and Care
The scent and care division grew sales by 6% at local currency; according to Symrise, "in reporting currency this represents an increase of 0.5% to €493 million, compared to the exceptionally strong prior year (H1 2013: € 490 million)."

Statement from CEO
“Symrise is entering the second half of the year with full steam ahead," said Heinz-Jürgen Bertram, CEO of Symrise AG. "In the first six months we have grown significantly and improved our profitability even further. High capacity utilization, our continued cost discipline and, above all, our focus on high-margin business were significantly contributing to this development. By successfully completing the acquisition of Diana at the end of July, we have finalized the largest acquisition in our company’s history on schedule. We also completed the acquisition financing in record time. This allows us to now fully concentrate on the integration process in the areas of research and development as well as production and sales. I am certain that we will further accelerate our profitable growth together with Diana.”