Symrise flavours and fragrances records key nine-month growth upturn
Flavours and fragrance group Symrise has reported a significant upturn in its nine-month results, with sales figures increased 6.7%, to €2.9 billion for the period, reports Neill Barston.
As the business, which produces a number of applications for the confectionery and bakery sector explained, its performance came after a resurgence in the travel sector that impacted positively on many of its ranges.
Its improved position was also reportedly lifted by a notable contribution from the recently acquired fragrance business of Sensient, resulting in organic sales growth of 8.3% for the group in total.
“We can look back on an exceptionally successful third quarter of 2021. As a result of the progress made in battling the coronavirus pandemic, demand has continued to increase significantly. The demand was particularly high for applications associated with more travel or leisure activities – including, for example, sun protection products, fragrances, but also applications for beverages and culinary products.
:We are extremely satisfied with our business development since the beginning of the year and we are continuing our accelerated growth path,” said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. “This is why we are once again raising our sales forecast to around 9 %. We are confident that we can achieve even more growth than forecasted after six-months and we will make the best possible use of the remaining weeks in 2021 to achieve this target.”
As the company noted, it had particular success with its scent and care division, with aroma molecules and cosmetic ingredients, achieved strong organic sales growth of 8.1 % in the first nine months and 6.2 % in the third quarter of 2021. Its fragrance interests also benefited in particular from strong demand in the application area luxury perfumes, driven by the resumption of international travel and normalisation of consumer demand following the end of lockdowns in many countries. The Fine Fragrances business achieved an excellent double-digit sales growth in all regions.
The Flavor & Nutrition segment also increased organic sales by a strong 10.0 % compared to the previous year. In the third quarter, organic growth amounted to 9.7 %. Taking currency translation effects into account, segment sales increased to € 1,752 million (9M 2020: € 1,646 million). This saw a normalisation of consumer behaviour owing to progress in combatting the coronavirus pandemic. The increase in out-of-home consumption exerted a positive impact and led to strong demand for beverages, with the company’s petcare division also reportedly delivering a strong performance.
Applications for beverages recorded sales growth in the double-digit range. In all markets, growth was particularly driven by the strong increase in demand for beverages destined for out-of-home consumption.
Sales in the savoury business unit in all regions slightly exceeded the exceptionally high prior-year level, which was characterised by the particularly high demand during the initial months of the coronavirus pandemic. Furthermore, sales for sweet product solutions were slightly below the prior-year level, with medium single-digit growth driven by new customers in Latin America and Asia/Pacific was offset by the current low price level for vanilla.
Furthermore, the company said it is aiming for an EBITDA margin of more than 21% for 2021. The medium-term targets continue to be unchanged. The company expects to increase its sales to between € 5.5 and € 6.0 billion by the end of the financial year 2025, and targeted growth of 5-7% a year.