Symrise Nine-Month Net Income Up 11%; Boosted By Aroma Molecules

Syrmise AG’s nine-month net income rose 11% and its sales jumped 6% amid double-digit growth in nearly all of its regions of operations and particularly higher demand in aroma molecules and fragrances.

For the nine months ended Sept. 30, net income rose to €139.9 million from €125.9 million a year earlier. Symrise’s sales for this period jumped 6% in reporting currency to €1.401 billion from €1.319 billion during the year-ago period. At local currency, this corresponds to a 10% increase.

North America was the strongest region, generating sales growth of 15% at local currency. Symrise benefited from both its existing business and the fragrance activities acquired from Belmay at the start of the year. Latin America was the second strongest region, posting a sales increase of 12% at local currency. The Asia/Pacific region came in third with a sales increase of 11%.

Sales for the scent & care division grew 10% (14% at local currency) to €736.3 million, particularly boosted by higher demand in the aroma molecules and fragrances business units.The expanded menthol production capacities added last year and the fragrance activities acquired from Belmay in the first quarter also contributed to the positive development.

Scent & care posted its strongest growth in North America with sales up by 20% at local currency. The Asia/Pacific region also generated strong growth and achieved a sales increase of 15% at local currency compared to the previous year’s period. In Latin America, scent & care sales increased by 11% at local currency despite high comparables from the previous year. The EAME region experienced a significant recovery from the previous year with 10% sales growth at local currency. This can be particularly attributed to activities in the aroma molecules and life essentials segments.

Flavor & nutrition boosted sales by 2.5% during the reporting period to €664.9 million. At local currency, this corresponds to a 6.2% increase. The division benefited from especially high demand for products from the sweet and savory application areas.

Regionally, flavor & nutrition achieved its greatest sales growth in Latin America with an increase of 16% at local currency. The second strongest region was Asia/Pacific with an increase of 7% at local currency, followed by North America which grew 6% at local currency. The positive developments from the first half also carried over in the EAME region. Solid demand was seen in the emerging markets of Eastern Europe, the Near and Middle East as well as in the established markets of Western Europe, which resulted in a sales increase of 4% at local currency for the region.

Symrise said it continues to strive for the objectives it set for the fiscal year 2020. Sales growth (CAGR) is slated at 5% and 7% per year and the Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) margin should develop within the range of 19% and 22%.

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