Symrise flavours and fragrances posts key annual sales growth to $3.2 billion
Symrise, the flavours and fragrance group, has posted a 5.3% increase in sales, to € 3.2 billion for 2018, with net income for the business also increasing, to a figure of over €275 million.
The EBITDA earnings for the past year also rose, from €631 million, from €630 million for 2017, with increased activity in the US and China placing the business in an improved position. This was despite negative effects of currency exchanges and against a wider backdrop of increasing prices of raw material costs.
“In 2018 we seamlessly continued our success story. Symrise again grew profitably and outperformed the market. We identified and successfully capitalised on growth opportunities in every business segment. We also invested in future growth and added to our capacity. Although we were not able to counteract all of the headwinds caused by high raw material prices and negative currency effects, we still operated with a healthy profitability. We want our shareholders to participate in this success.
At the Annual General Meeting, the Executive Board and Supervisory Board will propose a dividend increase to € 0.90 per share for the fiscal year 2018,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “Despite the anticipated economic slowdown, we have made a confident start to the new fiscal year. We have substantiated our long-term ambition with the updated forecast. It extends into the year 2025 and provides for a strong increase in sales with further improved profitability.”
The growth driver at regional level was once again Latin America with an outstanding double-digit organic growth rate of 16.2 %. Business in the EAME and North America regions developed also highly positively, with an organic increase of 6.4 % and 6.1 %, respectively. In the Asia/Pacific region, the business achieved strong organic sales growth of 12.4 %. Overall organic sales growth in the dynamically expanding Emerging Markets reached 11.7 %. In these fast-developing markets, the company generated 43 % of its total sales.
Symrise is looking ahead to the current fiscal year with confidence. The Group again aims to exceed the overall growth rates in the relevant market. The market is projected to grow at a rate of 3–4% worldwide. In addition, Symrise is targeting an EBITDA margin of around 20 % despite the anticipated economic slowdown, ongoing volatility in exchange rates and a tight market for raw materials. Overall, with its global presence, diversified portfolio and broad client base, Symrise believes it is well positioned to achieve these goals.