Symrise 2014 Driven by Diana Acquisition, Cosmetics, Latin America, EAME

Symrise (Holzminden, Germany) has reported sales of €2.12 billion for 2014 (2013: €1,830.4 million), an increase of 18% at local currency, reaching an EBITDA of €464.5 million, a gain of 24% year-over-year. The company experienced a strong fourth quarter, totaling €590.1 million (2013: €429.2 million) (See first-half results here.)

Results were boosted by the company's Diana Group consolidation, which has provided entree into the baby food and pet food markets, as well as expanding its portfolio of natural ingredients.

Scent & Care
The Scent & Care segment, which focused on high-margin business, increased sales in local currency by 4%, totaling €980.4 million (2013: €960.4 million), and reaching an EBITDA of €222.9 million. Gains were driven by cosmetic ingredients.

Flavor & Nutrition
Excluding Diana, Flavor & Nutrition increased its sales by about 6%, totaling €905.8 million (2013: €869.9 million).The sales and earnings contributions of the Diana Group have been consolidated in the segment’s results since July 2014.

Including Diana, Flavor & Nutrition increased its sales by 34% at local currency, totaling €1,139.7 million (2013: € 869.9 million). Diana Group contributed sales of €233.9 million. For the months from July through December, Diana Group contributed an EBITDA of €48.8 million. The segment’s normalized EBITDA rose to €241.6 million (2013: €178.6 million), and its normalized EBITDA margin amounted to 21.2% (2013: 20.5%).

Latin America & EAME Lead Growth
All regions experienced double-digit growth in 2014, led by Latin America, followed by EAME, with sales increases of 27% and 21%, respectively (both at local currency).

The third-strongest region, with a gain of 17% at local currency was North America, followed by the Asia/Pacific region, where sales grew by 10%.

2015 Outlook
Symrise has warned that ingredient pricing fluctuations will "continue to influence the cost development in 2015," particularly with agricultural raw materials.

Currency fluctuations may also impact results.

Symrise notes that the global market for fragrances and flavors is growing at 2% to 3% per year, though the company expects to grow at a higher rate, achieving an EBITDA margin greater than 20%.

Heinz-Jürgen Bertram, CEO of Symrise AG, said, "2014 was a very successful year for Symrise. We considerably expanded our market position in mature and emerging markets and significantly broadened our portfolio of natural ingredients through the acquisition of Diana. But, most importantly, we once more created value and substantially increased sales, earnings and profitability. As a result, we are in an excellent position, both strategically and financially, to continue our profitable growth in 2015 and to outperform the market again."


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