Symrise’s third-quarter sales report noted organic sales growth of 9.2% in the first nine months and 8.3% in the third quarter.
Further raising of sales target for 2021 included organic growth of around 9% expected
EBITDA margin to exceed 21%.
Taking into account the portfolio effect from the acquired fragrances business of Sensient, as well as currency translation effects, group sales rose to €2,883 million during the reporting period, up 6.7% compared to the prior-year period and 10.6% in the third quarter. Both segments contributed to this positive result.
Scent & Care, the business with fragrances, aroma molecules and cosmetic ingredients, achieved strong organic sales growth of 8.1% in the first nine months and 6.2% in the third quarter of 2021.
The Fragrance division benefited from strong demand in the application area luxury perfumes, driven by the resumption of international travel and normalization of consumer demand following the end of lockdowns in many countries. The Fine Fragrances business achieved excellent double-digit sales growth in all regions. The Consumer Fragrance and Oral Care business units also developed well, once again increasing sales compared to the exceptionally high levels of the previous year. Both generated organic growth in the single-digit range. Overall, the Fragrance division achieved good, single-digit percentage organic growth with sales increases in all regions.
The strong demand for aroma chemicals and in the Menthol business unit led to good sales development in the Aroma Molecules division. The highest growth was achieved in the Asia/Pacific and EAME (Europe, Africa, Middle East) regions. The Menthol business unit recorded double-digit percentage growth on the back of continuing strong demand and successful capacity expansions. Overall, sales in the Aroma Molecules division increased organically in the middle single-digit range in the first nine months and in the double-digit range in the third quarter.
Growth in the Scent & Care segment was particularly driven by the Cosmetic Ingredients division, which also benefited from increased travel activity and the demand for high-quality cosmetic products. The high demand for sun protection products and products with active cosmetic ingredients led to strong organic growth. The regions of North America and EAME, in particular the national markets United States, Canada and France, underwent particularly expansive development. Overall, the division achieved strong double-digit organic sales growth in the first nine months and further accelerated growth in the third quarter.
The Flavor & Nutrition segment increased organic sales by a strong 10.0 % compared to the previous year. In the third quarter, organic growth amounted to 9.7 %.
Applications for beverages recorded sales growth in the double-digit range.
Sales in the Savory business unit in all regions slightly exceeded the exceptionally high prior-year level, which was characterized by the particularly high demand during the initial months of the coronavirus pandemic.
Sales for sweet product solutions were slightly below the prior year level. Medium single-digit growth driven by new customers in Latin America and Asia/Pacific was offset by the current low price level for vanilla.
The Pet Food business unit continued its strong growth compared to the already excellent prior-year period and increased sales in the double-digit percentage range.
The Food business unit achieved modest organic growth. This was driven by rising sales in Western Europe, while sales in North America declined slightly.
The ADF/IDF group also developed extremely well, achieving double-digit organic sales growth. The business recorded strong growth in its home market, the American domestic market.
The Probiotics business unit, including the majority shareholding in the Swedish company Probi AB, did not maintain the strong level of the previous year and recorded a slight decline in sales.
Dr. Heinz-Jürgen Bertram, CEO of Symrise, said, “We can look back on an exceptionally successful third quarter of 2021. As a result of the progress made in battling the coronavirus pandemic, demand has continued to increase significantly. The demand was particularly high for applications associated with more travel or leisure activities—including, for example, sun protection products, fragrances, but also applications for beverages and culinary products. We are extremely satisfied with our business development since the beginning of the year and we are continuing our accelerated growth path. This is why we are once again raising our sales forecast to around 9%. We are confident that we can achieve even more growth than forecasted after six months and we will make the best possible use of the remaining weeks in 2021 to achieve this target.”