Symrise Steady in Shrinking Market

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Predicting that the flavor and fragrance market will shrink in 2009 due to customer destocking and raw material costs, Symrise (Holzminden, Germany) CEO Heinz-Jurgen Bertram predicted that the company would “continue to be better than the overall market development.”

Hampered by restructuring and integration costs and boosted by recent acquisitions, Symrise posted first half sales of 685.1 million euros, up from 676 million euros the same period last year. North American sales gains of 31% were driven by recent acquisitions, while South America proved to be an area of strength, rising 15%. While Asia-Pacific grew by 5%, the EAME region fell by 10%.

Symrise announced that 29% of its sales now come from its top-tier customers, having risen 5% and 3.1% for the scent and care and flavor and nutrition divisions, respectively. Scent and care achieved first half sales of 343.6 million euros, up a tick from 342.7 million euros the previous year. While personal care and fine fragrance sales lagged, the life essentials division remained resilient.

Flavor and nutrition sales rose 3% year-over-year to 341.5 million euros, powered by the effects of the 2008 Chr. Hansen acquisition. The Americas showed marked strength for the division.