Symrise Reports on 2021 Half-Year Sales

Symrise achieved strong sales and earnings growth in the first half-year of 2021.
Symrise achieved strong sales and earnings growth in the first half-year of 2021.

In Symrise AG's report, the company's sales growth amounted to 9.7% in the first half-year of 2021.

Related: Symrise Perfumery School Recruiting for Fragrance Program

Sales increased by 4.8% to €1,908 million (H1 2020: €1,821 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 6.8% to €420 million compared to the same period of the previous year. The EBITDA margin developed particularly well with a value of 22.0% (H1 2020: 21.6%). Net income for the period increased by 15.9% to €196 million. Symrise raised the forecast for the full year and is targeting organic sales growth of more than 7% (previously 5 to 7%) and an EBITDA margin of more than 21% (previously around 21%).

In the reporting currency, Symrise achieved sales growth of 4.8% to €1,908 million (H1 2020: €1,821 million).

The Scent & Care business achieved organic sales growth of 9.0% in the first half year of 2021.

The Fragrance division achieved overall organic growth in the double-digit percentage range. Demand in the Fine Fragrances business unit recovered in virtually all regions. The Consumer Fragrance and Oral Care business units in each case delivered high single-digit organic growth.

Sales in the Aroma Molecules division were at the prior-year level. The significant growth in the Menthols business unit was able to almost entirely compensate for the lower demand for aroma molecules and the fall in their market prices.

The Cosmetic Ingredients division benefited from the increasing demand for luxury body care products and cosmetics and achieved a double-digit increase in sales.

Scent & Care increased EBITDA including a one-off contribution from the Sensient acquisition by €16 million to €162 million (H1 2020: €146 million). Scent & Care achieved an EBITDA margin of 21.7% (H1 2020: 20.6%) respectively 19.9% (not including one-off effect).

The combined Flavor & Nutrition segment increased its sales organically by 10.1%.

Applications for beverages recorded organic sales growth in the double-digit percentage range.

Sales for sweet product solutions remained constant at the prior year level.

The Pet Food business unit continued the strong development from the prior year and achieved organic growth in the double-digit percentage range.

The Food business unit benefited from the recovery in demand in many markets, particularly in Western Europe.

Sales development in the Aqua business unit was influenced by the continuing low demand for feed solutions in aquaculture.

ADF/IDF developed very well and generated organic growth in the double-digit percentage range.

Probi recorded organic sales growth in the high single-digit percentage range and benefited mainly from product launches in the EAME region.

EBITDA for the Flavor & Nutrition segment rose by 4.2% to €258 million (H1 2020: €247 million). The EBITDA margin at 22.2% stayed at strong prior-year level (H1 2020: 22.2%).

Net income for the period increased to €196 million in the reporting period and was, therefore, €27 million above the value for the prior-year period (H1 2020: €169 million). Undiluted earnings per share rose by 16% to €1.45 after €1.25 in the first half of the previous year.

Operating cash flow at €136 million was €83 million below the prior-year figure of €219 million. The business free cash flow amounted to €181 million (H1 2020: €191 million) for the first six months of the current fiscal year.

Net debt increased by €184 million to €1,531 million compared to the reporting date of December 31, 2020.

At the beginning of May, Symrise successfully refinanced the existing Revolving Credit Facility of €300 million from the year 2015.

Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said, “The progress made in combatting the worldwide coronavirus pandemic had a positive impact on our business during the second quarter. Demand increased significantly in many areas. In particular, there was strong demand for cosmetics and fine fragrance applications again. Product solutions for beverages and food also developed very dynamically because falling case numbers for the coronavirus fueled out-of-home consumption. Although the pandemic will persist, we are very confident for the coming months following the good first half of the year, and we are more confident about our performance in the future. We are therefore raising our forecast for the organic sales target, as well as for the profitability target.”

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