Symrise Results Benefit from Second-Half 2009 Improvements

Symrise (Holzminden, Germany) has reported 2009 sales of 1,362 million euros, a rise of 3.2%, year-over-year, powered by growing business in the year's second half and restructuring activities. Meanwhile, emerging market revenue jumped 4.5% for the period, increasing its contribution to total sales to 41%. Sales in South America grew 17% and 8% in Asia-Pacific. Sales in North America grew 14%, powered by acquisitions, while destocking in Europe-Africa-Middle East (EAME) led to a 4% drop in sales. Symrise notes that the second half of the year generally witnessed an improvement in sales, in addition to an overall 4.4% sales gain with core list customers. These large global customers now account for 29% of sales.

Flavor and Nutrition
Boosted by major customers, core list gains and a decline in destocking, Symrise's flavor and nutrition division reported sales of 679.7 million euros, an increase of 9.1% over 2008. The division experienced a 21% sales gain in South America (local currency). Asia-Pacific was also strong. North American results were boosted by 2008 acquisitions. In addition, business in the EAME region experienced some recovery in the second half of the year.

Scent and Care
Symrise's scent and care division, powered by second-half sales gains, grew 2009 sales by 1.6 % to 682.3 million euros. Household, personal care and oral care results offset weakness in luxury personal care and fine fragrance. Growth in emerging markets (5% for the year) was notable, led by South America, which has witnessed gains in luxury fine fragrances. Acquisitions made in 2008 boosted North American results. Asia-Pacific grew while EAME was weak.

Of the results, CEO Heinz-Jürgen Bertram said, “Symrise has demonstrated its resilience during the deepest recession in decades. We managed to maintain our above-average growth rate despite the difficult environment. Our strategic focus on large global customers, emerging markets and innovative products has paid off. At the same time we consequently adjusted to changing market conditions and made our operations leaner and more efficient. The market environment has improved in recent months, but continuously high raw material prices and the low level of consumer confidence still constitute challenges. Our mid-term objective is to capitalize on our special strengths in dynamic regions and in innovative application areas to become the third-largest supplier in our market. We are confident that we can achieve this goal with our current strategy and under our own power.”

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