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“Discernable Upswing” Evident in Symrise Q3 Results

Posted: November 5, 2009

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Symrise (Holzminden, Germany) has reported a sales gain of 4% in the third quarter, compared to the same period 2008 (all numbers pro forma). The scent and care and flavor and nutrition divisions contributed to the increase, which occurred in every geographical region. For the first nine months of the year, Symrise posted a revenue gain of 1.3% compared to 2008, reaching 1,037.5 million euros. The company now says it expects to grow faster than the market for full-year 2009. 

Strong Regional Growth

Despite a nine-month decline of 7% in Europe/Africa/Middle East (EAME) compared to 2008, a 2% third quarter sales gain in Eastern and Western Europe has given Symrise hope that fortunes are changing. Meanwhile, Symrise saw significant results in South America and North America in the first nine months of the year, jumping 19% and 23%, respectively; the latter benefited from the 2008 purchases of the Chr Hansen flavor division, Manheimer Fragrances and Intercontinental Fragrances. In Asia/Pacific, sales rose 6%. 

Top Customers

Symrise reported that its flavor and nutrition and scent and care divisions increased major customer sales by 6.9% and 0.3%, respectively. Fully 28% of the company’s sales are now tied to their top 10 customers, boosted by entry onto several new core lists. Scent & Care – upswing in the third quarter

Scent and Care

EAME generated a sales gain in the third quarter, a first for 2009, perhaps signaling the decline of destocking. Nine month results were up 5%, totaling 518.6 million euros. So-called life essentials and household segments drove results, with fine fragrance and personal care continuing to lag. Again, South and North America and Asia-Pacific showed strong results.

Flavor and Nutrition

In the first nine months of 2009, this division reported total sales of 518.9 million euros, a gain of 3.8%; third quarter sales alone jumped 6.5%. Growth in flavor and nutrition was reported in every geographic region during the third quarter. South America grew by 31 % (local currency); North America also reported strong results, boosted by the former Chr Hansen flavor business. Meanwhile, destocking decreased in EAME allowing for growth. Sales were also up in the Asia/Pacific region. Results were achieved despite high raw material costs and first-half 2009 destocking.

Of the results, CEO Heinz-Jürgen Bertram said, “The clearly discernible upswing in the third quarter confirmed our expectations for the second half of 2009. In our view, the sales growth in both business divisions and in all regions is a signal that destocking on the part of our customers has virtually come to an end. This contributed to the improvement of our earnings situation, as did the restructuring measures, whose effects became apparent in the third quarter. Symrise remains fast-growing and profitable. For the year as a whole, we expect a sales growth of 2% at local currency. Symrise is benefiting from its strong innovative ability and from its strong market position in dynamically growing emerging markets. Moreover, we anticipate that we will achieve an EBITDA, adjusted for restructuring expenses, at the previous year’s level, will improve the adjusted earnings per share, and will continue to generate a strong cash flow. On the whole, Symrise fared very well in the difficult market situation of recent months and has good prospects of emerging from the crisis stronger than before.”