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Symrise Q3 Profit Rises 6% on Emerging Market Strength
Posted: November 7, 2012
Symrise AG’s third-quarter net income rose nearly 6%, buoyed by above-average strength in the emerging markets, particularly Latin America and Asia. The company also said it expects to reach its 2012 full-year growth targets.
For the quarter ended Sept. 30, the flavor and fragrance supplier said its net income rose to €42.4 million from €40 million a year earlier. Sales for the quarter rose 14%, or 9% at local currency, to €448 million. On a nine-month basis, the group posted sales of €1.32 billion, up 9% from a year earlier, or up 6% at local currency. The emerging markets accounted for 48% of sales for the very first time for the nine-month period.
The company’s scent and care and flavor and nutrition divisions provided strong impetus for growth despite high raw materials prices and start-up costs for its new menthol production plant. By segment, the scent and care division posted sales of €671 million for the first nine months, up 10% from a year earlier, or up 7% at local currency. The division had continued rapid growth in the life essentials, oral care and fine fragrances application areas, with regional strength led by Latin America followed by North America and Asia-Pacific.
Flavor and nutrition’s nine-month sales climbed 9% to €649 million, up 5% at local currency. The division was able to boost its sales in all regions, although Western Europe was weak due to the sovereign debt crisis. Beverages and savory applications, in particular, were strong in the Asia-Pacific region. In Latin America, sales increased 5% at local currency, with Brazil, Argentina and Chile showing the strongest growth.
Symrise said it sees full-year growth of 3% to 5% at local currency and Earnings Before Interest, Taxes, Depreciation and Amortization, or EBITDA, margin of around 20%.