Corporate | 9 May 2017 07:30
Symrise with a successful start in 2017 (news with additional features)
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DGAP-News: Symrise AG / Key word(s): Quarterly / Interim Statement/Quarter Results
Symrise AG started successfully into the fiscal year 2017. The Group seamlessly continued its strong performance from the previous year and again significantly increased sales and earnings in the first three months. Contributing to this development was strong demand in all segments. In the first quarter, Symrise increased its sales by 4.6 % to EUR 765.2 million (Q1 2016: EUR 731.8 million). Adjusted for portfolio and exchange rate effects, the Group achieved organic growth of 5.3 %.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were up by 4.4 % to EUR 165.5 million (Q1 2016 EBITDAN: EUR 158.5 million). With an EBITDA margin of 21.6 %, Symrise continued to operate highly profitable (Q1 2016 EBITDAN margin: 21.7 %).
“The targeted investments to expand our portfolio, the further development of our customer relationships, and the efforts to build our market presence continued to pay off in the first quarter. We seamlessly maintained our strong performance into the first months of 2017, expanded our existing business in all segments, and also gained new customer projects. There is therefore every reason to feel confident as we look forward to the coming months. We plan to continue pushing ahead with our growth initiatives and to keep expanding our market position. For 2017 we are planning a number of projects. These will include gaining broad access to natural, sustainable raw materials and the expansion of our capacities in Holzminden as well as internationally,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.
Sales growth yet again strong
Scent & Care with growth impulses from Aroma Molecules The Scent & Care segment achieved sales of EUR 333.2 million in the first quarter (Q1 2016: EUR 344.3 million). Due to the sale of Pinova Inc. in December 2016, sales decreased by 3.2 % compared to the prior-year quarter. Adjusted for portfolio effects from the Pinova sale, the segment recorded organic growth of 1.1 %. After adjustment for the Pinova portfolio effect, the Aroma Molecules division posted the strongest first-quarter sales growth within the Scent & Care segment. Growth drivers were in particular the high demand for fragrance ingredients and menthol. Fine Fragrances as part of the Fragrance divisions also made good contributions to growth, increasing sales at double-digit rates in Asia. Satisfactory growth was also achieved in Latin America and EAME. The region Latin America posted double-digit growth in the application area of Home Care products as a result of new business with global and regional customers. The EAME and Asia/Pacific regions experienced lower demand compared to the same quarter a year earlier. Sales in Oral Care were significantly higher in North America and EAME, benefiting in particular from new business with international customers. Symrise experienced moderate growth in EAME with fragrance compositions for Beauty Care products. The regions North America, Latin America and Asia/Pacific were below our expectations due to lower demand. Demand for sun protection products in the Cosmetic Ingredients division was down slightly in the first quarter. However, this trend was offset by dynamic growth in sales of cosmetic ingredients.
EBITDA in the Scent & Care segment amounted to EUR 71.9 million in the first quarter (Q1 2016 EBITDAN: EUR 72.5 million). This includes a one-time gain from a purchase price adjustment of EUR 4.7 million related to the sale of the Pinova industrial activities. The EBITDA margin was
Flavor benefits from new business
Among the regions, the main growth driver was EAME, which achieved a double-digit sales increase. Important contributions to growth came especially from the Sweet and Savory Business Units in the national markets of Germany and France as well as North Africa. Beverages also showed solid growth, especially in Germany as well as the Near and Middle East. In the Asia/Pacific region, sales in applications for sweets were up substantially in the national markets of Japan, India and the Philippines, but increased only moderately in Indonesia. The region Latin America performed generally well, benefiting especially from double-digit growth rates in Beverages in Argentina. In Brazil, demand in that area was generally more restrained in the first three months of the year. In the region North America, Symrise continued with the successful expansion of its existing business. In addition, demand grew due to product launches.
EBITDA in the Flavor segment amounted to EUR 56.9 million in the first quarter. This represents an increase of EUR 2.5 million, or 4.7 %, over the same quarter a year earlier (Q1 2016: EUR 54.4 million). The EBITDA margin, at 21.1 %, was down slightly (Q1 2016: 21.7 %). This was mainly the result of higher prices for some natural raw materials and increased expenditures for research and development.
Strongest growth rates were achieved with applications for pet food, with double-digit gains. At the regional level, the largest increases in sales were seen in Latin America, with the national markets of Argentina, Mexico and Columbia, followed by the EAME region. Sales in applications for food ingredients also showed a very satisfactory development due to strong demand in North and Latin America. Strong organic growth was achieved in both of those regions. In addition, important projects with global and regional customers were successfully implemented. In Probiotics, Symrise increased sales through the acquisition of the US company Nutraceutix. The application area achieved double-digit growth even after the acquisition effects, especially in the regions North America and EAME.
During the reporting period, the Nutrition segment increased its EBITDA by 16.1 % to EUR 36.7 million (Q1 2016: EUR 31.6 million). The EBITDA margin reached an again outstanding 22.7 % (Q1 2016: 23.0 %).
The medium-term targets through to the end of the 2020 fiscal year remain in effect, including a compound annual growth rate (CAGR) of 5-7 % and an EBITDA margin of 19-22 %.
About Symrise: Symrise is a global supplier of fragrances, flavorings, cosmetic base materials and substances as well as functional ingredients. Its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements and pet food. With sales of more than EUR 2.9 billion in 2016, Symrise is among the global leaders in the market for flavors and fragrances. Headquartered in Holzminden, Germany, the Group is represented in over 40 countries in Europe, Africa and the Middle East, Asia, the United States and Latin America. Symrise works with its clients to develop new ideas and market-ready concepts for products that form an indispensable part of everyday life. Economic success and corporate responsibility are inextricably linked as part of this process. Symrise – always inspiring more.
Social media: twitter.com/symriseag linkedin.com/company/symrise youtube.com/agsymrise xing.com/companies/symrise
Financial calendar 2017
May 22
August 9
November 8
Further financial information can be found at the end of this Group Quarterly Statement via a link in a separate PDF file. Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=YXSRRIABNC Document title: Symrise AG Q1 2017 Financial Information Table
09.05.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English |
| Company: | Symrise AG |
| Mühlenfeldstraße 1 | |
| 37603 Holzminden | |
| Germany | |
| Phone: | +49 (0)5531 90 0 |
| E-mail: | ir@symrise.com |
| Internet: | www.symrise.com |
| ISIN: | DE000SYM9999 |
| WKN: | SYM999 |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| End of News | DGAP News Service |