Symrise AG reliably continued its profitable growth course in 2020 despite the challenging environment due to COVID-19, with increased sales by 3.3 % to € 3,520 million. In organic terms, sales went up by 2.7 %.
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The group thus significantly outperformed market growth, which is estimated at 1.0 % for 2020. At the same time, Symrise stayed behind its defined sales target, as the business development in the month of December was impacted by a criminal cyber-attack. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 5.8 % to €742 million in 2020. Profitability also rose with an EBITDA margin of 21.1 %.
Net income for the period rose by €11 million to €307 million (2019 normalized: €296 million). Earnings per share increased to €2.27 (2019 normalized: €2.20) accordingly. Executive Board and the Supervisory Board plants to propose a dividend increase to € 0.97 per share for the fiscal year 2020 (2019: €0.95) at the annual general meeting.
Symrise increased the business free cash flow by 18% year-on-year to € 564 million (2019 normalized: € 476 million). This represents a share of 16% in sales (2019 normalized: 14.1%).
This resulted in a decrease in net debt by €269 million to €1,348 million (2019: €1,617 million).
The Scent & Care segment generated sales of €1,370 million and achieved organic growth of 1.5%. In particular, the strong demand for bodycare and hygiene products generated rising sales in Consumer Fragrances and Oral Care. Both application areas posted double-digit or high single-digit organic percentage growth. By contrast the Fine Fragrances application area was unable to continue at the high prior-year level owing to the pandemic.
Scent & Care generated EBITDA of €272 million in 2020 after €278 million in the previous year. The EBITDA margin of 19.8 % was slightly above the level in 2019 (19.6%).
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The Flavor segment generated sales of €1,225 million in the fiscal year 2020 and consequently experienced organic growth of 0.7%. Taking negative currency translation effects into account, sales in reporting currency were 2.6% below the prior-year figure.
EBITDA in the Flavor segment amounted to €267 million (2019: €268 million). Profitability remained at a very high level with an EBITDA margin of 21.8 % (2019: 21.4%).
Nutrition achieved an increase in organic sales of outstanding 8.2%. Taking portfolio and currency translation effects into account, sales in reporting currency increased by 26.6% to €926 million.
The Nutrition segment increased EBITDA to €204 million and thereby significantly exceeded the normalized prior-year figure (2019 EBITDA(N): €155 million). The EBITDA margin increased, also supported by ADF/IDF, to 22.0% (2019 EBITDA(N) margin: 21.2%).
“In the historically exceptionally difficult year 2020, Symrise AG achieved a very solid result. Despite the shifts in demand resulting from the global coronavirus pandemic, we did an excellent job of staying on track until our progress was thwarted by a criminal cyber-attack on the final miles. Even though we were not able to fully achieve our growth targets, we nevertheless kept our profitability at a high level and continued to increase earnings. Once again, this success proves that we have a robust business model and that our dedicated employees reliably create value. We therefore also want our shareholders to participate in the success of the company for 2020. The Executive and Supervisory Boards will propose a dividend of € 0.97 to the annual general meeting. This is the eleventh dividend increase in succession,” said Dr. Heinz Jürgen Bertram, CEO of Symrise AG.
“Battling the pandemic will continue to define people’s everyday lives and economic conditions in 2021. However we look with confidence into the current financial year and expect reliable demand. Against this background, we are targeting organic sales growth of 5 to 7% and an EBITDA margin of around 21%."
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