The Germany-based flavours and fragrances supplier saw sales rise by 10% (16% at local currency), reaching EUR 1,463 million during the first half of this year, and its earnings before interest, taxes, depreciation and amortization without special items from its recent Pinova acquisition (EBITDAN) have increased by 8% year on year.
Its strong EBITDAN margin, at 22.1%, is the factor behind the company’s description of itself as one of the top businesses for profit in the ingredients industry.
“We are completely on track. We have seized opportunities and substantially increased our sales and earnings,” CEO of Symrise AG, Heinz-Juergen Bertram, asserted in a statement.
Drivers
Growth for the company over the first half-year period was driven in large part by its US-based Pinova Group, which was consolidated in the first quarter of this year, the company explains.
Alongside the Pinova contribution, the company says that it enjoyed strong demand across both flavours and fragrances, with the strongest gains in the North America (31% sales rise) and Latin America (26% sales rise) markets.
Emerging markets reported a 17% increase in local currency sales, and accounted for 43% of the group’s total sales. Asia Pacific saw 12% growth, with EMEA sales rising 7%.
Scent & Care segment
The company’s fragrance division specifically saw sales rise by 22%, reaching EUR 667.8 million. This sales growth can be attributed to high capacity utilisation, according to the company, alongside strong customer demand for menthol.
“Portfolio effects, such as the integration of Pinova, contributed € 110.5 million to Group sales. Even without these effects, Scent & Care achieved significant growth by 7% in local currency,” notes Symrise.
Optimism
Looking ahead at the coming months, Symrise describes itself as confident of continuing this growth trend, and says it is looking to outperform the global market.
“Despite the political and economic volatility in some countries, the Group expects demand and growth dynamics to be generally strong. Therefore, Symrise confirms its objective of outperforming the global flavor and fragrances market, which is estimated to be growing at an annual rate of 2-3%.”
The company also notes that it is now aiming to achieve an EBITDA margin of over 20%, and has committed to a CAGR of between 5 and 7%.
“Despite the volatility of certain exchange rates, Symrise aims to be among the most profitable companies in the industry."