Symrise announced the company's sales report for the first nine months of the year and revealed that it had achieved organic sales growth of 7.4 %. Group sales in the first nine months of the year increased to € 3,610 million (9M 2022: € 3,493 million), a growth of 3.3 % compared to the same period of the previous year. Sales increased organically in the third quarter by 6.4 %. Negative exchange rate effects of 9.4 % led to a decline in sales of -3.0 % in the reporting currency. Below are segment report highlights.
Sales Development by Region
The Latin America and EAME (Europe, Africa, Middle East) regions recorded the strongest organic growth, with 16.0 % and 15.1 % respectively. The main growth drivers were the Food & Beverage, Pet Food, Fragrance and Cosmetic Ingredients divisions. The Asia/Pacific region achieved solid organic growth of 3.5 %, primarily in the Fragrance, Food & Beverage and Cosmetic Ingredients divisions. Sales development in North America suffered due to the production shutdown at Colonel Island. Organically, sales there were 3.4 % down on the same period of the previous year.
Taste, Nutrition & Health / Food & Beverage
The Taste, Nutrition & Health segment increased its sales organically by 9.5 % in the first nine months. In the third quarter, organic growth stood at 6.0 %. Taking into account portfolio and exchange rate effects, the segment’s sales in the first nine months increased to € 2,267 million (9M 2022: € 2,178 million). Last year’s acquisition of Wing Biotechnology in China contributed around € 21 million to growth.
The Food & Beverage division achieved high single-digit percentage organic growth. Strong growth momentum came from the business units for sweet and savory products, and beverages. Strong growth was recorded especially in the EAME and Latin America regions. The Naturals business unit increased sales particularly in the Asia/Pacific and Latin America regions.
Pet Food / Probiotics
The Pet Food division achieved single-digit percentage organic growth. The EAME and Latin America regions posted double-digit percentage growth. Sales development was dynamic in France, Poland, Brazil, Colombia, and Mexico with pet food products.
Probiotics business remained below the previous year’s level and recorded a slight decline in sales in the first nine months mainly due to weaker demand in the North America and EAME regions.
Scent & Care
The Scent & Care segment, the business with perfume applications, fragrance and cosmetic ingredients, achieved organic sales growth of 4.1 % in the first nine months of 2023 and 7.1 % in the third quarter. Taking into account portfolio and exchange rate effects, sales in the reporting period amounted to € 1,343 million (9M 2022: € 1,316 million). The acquisitions of Groupe Néroli and Romani made in 2022 contributed around € 15 million to sales.
The Fragrance division increased its sales organically by a single-digit percentage in the first nine months. The Fine Fragrances business unit in particular continued its dynamic development, once again achieving double-digit percentage growth following a strong previous year. Strong growth was recorded especially in the EAME and Latin America regions. The Consumer Fragrance business unit achieved single-digit percentage organic growth. Here, too, the Latin America and EAME regions recorded strong growth. The Oral Care business unit achieved single-digit percentage organic growth with strong growth especially in the Asia/Pacific and Latin America regions.
Sales development in the Aroma Molecules division was marked in the first nine months by a market environment that remains difficult and the production shutdown at Colonel Island, USA. Moreover, demand for fragrance ingredients and menthol was affected by destocking on the customer side. Overall, sales were significantly down on the previous year. Following the recent resumption of production at Colonel Island, Symrise expects the sales situation to improve in this environment in the fourth quarter.
Sales in the Cosmetic Ingredients division continued to develop well in the first nine months of the current year with double-digit percentage organic growth. The EAME, Asia/Pacific and Latin America regions increased sales significantly. Micro Protection and sun protection also recorded very strong growth.
Heinz-Jürgen Bertram, chief executive officer of Symrise AG shared, “In the third quarter, Symrise was able to seamlessly continue the positive sales trend of the previous months. Despite high inflation and sustained volatility in our markets, we are also optimistic for the rest of the year and expect robust demand. Our diversified portfolio and broad international positioning will also help us this year to capitalize on our growth potential and create sustainable value. We are firmly convinced that we have set the right course for the future, which is why we extend our growth targets in the long term until 2028. We are targeting continued organic growth of 5 to 7 % and an EBITDA margin of 20 to 23 %.”