Symrise half-year results show business continues key growth trajectory
Flavours and fragrance group Symrise showed strong progress with its latest financial results revealing organic sales growth of 10.2 %, recording an 18.5% year-on-year in revenue gain to € 2,260 billion, reports Neill Barston.
The business, which has produced a number of applications for the confectionery and bakery sectors produced encouraging figures across the board, with its latest EBITDA increasing by 15.7% to € 486 million compared to the same period in the previous year.
The Group’s profitability reached a good level of 21.5 %, slightly below the previous year’s figure of 22.0 % mainly due to higher raw material and operating costs. At € 229 million, net income for the first six months exceeded the previous year’s figure of € 196 million by 16.6 %. In light of its solid performance in the first half of the year, Symrise is raising its forecast for the year as a whole and is now targeting organic sales growth of significantly above 7 % (previously 5 to 7 %) and an EBITDA margin of around 21%.
“In a volatile business environment caused by rising commodity prices, ongoing global supply bottlenecks and the Russia-Ukraine war, we managed to continue on our profitable growth course. We achieved this by relying on our robust business model, diversified application portfolio and broad regional presence and customer base. Demand increased significantly in many areas.
“Customers have particularly increased their demand for applications for cosmetics, fine fragrances and pet food. Solutions for beverages and food have also performed very well and considerably contributed to the double-digit organic growth,” says Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG. “In light of the dynamic business development, we have raised our sales forecast and are now targeting organic sales growth of significantly above 7 % for the current fiscal year. While commodity and energy prices continue to increase, we want to maintain profitability at a high level with an EBITDA margin of around 21%.”
The Symrise Group achieved sales growth of 18.5 % in the first half of 2022. The acquisition of the Fragrance and Aroma Chemicals business of Sensient, the acquisitions of Giraffe, Schaffelaarbos, Groupe Néroli and Romani, and the sale of the Velcorin and colour business exerted a positive impact on sales development totaling € 59 million. Excluding portfolio and exchange rate effects, organic sales growth amounted to 10.2%.
Notably, the company’s Taste, Nutrition & Health achieved organic sales growth of 12.7 % in the first half of 2022. Taking into account portfolio and exchange rate effects, the segment’s sales amounted to € 1,398 million in the reporting currency and thus exceeded previous year’s figure (H1 2021: € 1,159 million) by 20.6 %. The positive net effect of the acquisitions of Giraffe and Schaffelaarbos and the divestments of the Velcorin and color businesses totaled around € 34 million.
In the Food & Beverage division, increased leisure activities and growing out-of-home consumption led to good demand for beverage and savoury products. It recorded the strongest growth rates in the Latin America, Asia/Pacific and EAME (Europe, Africa, Middle East) regions. The Sweet business in the Latin America region reported high double-digit percentage growth. The Naturals business unit strongly expanded its sales, particularly in North America.