Symrise exceeds target with 18% jump in sales from last year

11-Mar-2015 - Last updated on 12-Mar-2015 at 09:39 GMT

Even without the takeover of Diana, the company had performed well, it said

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Growth at the fragrance and flavour company was fuelled by the acquisition of the Diana Group and a particularly strong quarterly earnings beating forecasts, said the company.

For the full year, group sales increased 18% at local currency to £1495m (€2,120m) from the previous year’s £1290m (€1830m). “This beat the estimated compound annual growth rate of 5-7% until 2020,” said the company.

Fourth quarter earnings in in group sales jumped 35% at local currency to £416m (€590m) from £302 (€429m) in 2013.

Its earnings before interest, tax, depreciation and amortisation, adjusted for one-off effects from the acquisition of Diana (EBITDAN) in July 2014 was £327m (€464m), the company added.

Acquisition of Diana

The company said its acquisition of French flavour and ingredients producer Diana was a “defining moment” of 2014. By folding Diana in to the business, Symrise entered the baby food and pet food markets and was able to “expand its portfolio of natural ingredients”.

“We (have) deepened our customer relations and are delivering more complex product solutions,” said a company’s representative to FoodNavigator.

The move was financed through an increase in equity, a bind issue and bank loans, it added.

“Diana compliments Symrise in particular within the areas of vegetables, fruits, meat. This secures our supply chain with high quality raw materials and favourable raw material prices,” said the company.

It also looks to tapping into Diana’s strong position in the natural flavours section.

Organic growth

But even without the strategic takeover of Diana, the company had performed well, it said. Its flavour and nutrition segments saw increased sales of 6% at local currency to £638m (€905.8m) from £613 (€869.9m) the previous year.

This was stronger than the company’s scent and care segment, which also grew by 4% to £691m (€980.4m) from £677 (€960.4m) in 2013, it added.

Looking ahead

In the current fiscal year, the company expects to benefit from strong customer demands and increased economic progress in emerging markets.

Chief executive officer of Symrise AG Dr Heinz-Jürgen Bertram, said: “2014 was a very successful year for Symrise. We considerably expanded our market position in mature and emerging markets and significantly broadened our port-folio of natural ingredients through the acquisition of Diana…we are in an excellent position, both strategically and financially, to continue our profitable growth in 2015 and to outperform the market again.”

A company representative added that the company’s target for 2020 are a sales increase of 5-7% CAGRcompound annual growth rate, to achieve an EBITDA margin between 19 and 22% and to “increase our sales share in emerging markets to over 50%”.