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Symrise Q1 Profit Jumps 7% On Strong Utilization Rates, Menthol Expansion
Posted: May 7, 2013
Symrise AG's first-quarter profit rose 7% from a year earlier, as a result of strong utilization rates in both divisions as well as the expansion of its menthol capacities which was realized in 2012 and will make further contributions this year.
The company said first-quarter net income rose to €46 million from €43 million from a year ago. First-quarter sales increased 6%, or 8% at local currency, to €458 million from €433 million a year earlier.
During the quarter, sales in emerging markets increased by 11% at local currency. The group generated 48% of its total sales, as compared to 46% a year earlier, in emerging markets.
By segment, flavor and nutrition generated first-quarter sales of €213 million from €208 million a year ago, which is up 2%, or 4% at local currency. The scent and care division posted higher sales across every region, with a sales rise of 9%, or 11% at local currency, to €245 million.
For fiscal year 2013, Symrise is expecting an advantageous development in consumer confidence. Despite the Euro crisis, Symrise expects to see an overall positive economic climate in its sales markets. The group is aiming to once again outperform the growth of the global fragrances and flavors market, which is expected to expand by between 2% and 3%.
Compared to the 2012 figures, the group aims to increase sales by €1 billion until 2020, which corresponds to an average annual sales growth (CAGR) of 5% to 7%. Symrise also aims to increase its Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) to more than €500 million by the end of 2020. The EBITDA margin should be within the range of 19% to 22%.