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Symrise tastes sales growth in first half results

By Rod Addy , 09-Aug-2012

Symrise tastes sales growth in first half results

Symrise’s flavour and nutrition division nailed an increase in sales in the first half (H1) of 2012, driven by performance in emerging markets and increasing sales with major customers.

The achievement reflected successful attempts to fight off higher energy and raw material prices and costs from expanding its menthol plant in Germany, said company chief executive Heinz Jurgen Bertram.

The global scent and flavours company reported the strongest flavour and nutrition growth in North America, where sales rose by 12%. The firm also achieved 3% sales growth in Europe, Africa and the Middle East (EAME).

Russia was the star performer in the EAME region for the division, clocking up strong double digit growth, while Western European markets continued to struggle as a result of the debt crisis. Asia Pacific and Latin America regions also both recorded growth, albeit only 1% and 2% respectively.

Major customers

Pre-tax profit for the division overall rose by 9%, from €86m in 2011 H1 to €93m in H1 2012. Symrise said sales from major flavour and nutrition customers rose by 8%, which chimed with strong returns from the whole of its global customer base.

Symrise reported an increase in pre-tax profit in the six months to June 30, from €162.5m in H1 2011 to €174m on sales up 7% in the six months to June 30, from €812m to €872m.

“Once again, Symrise achieved an EBITDA [pre-tax profit] margin of 20%,” said Bertram. “This is a notable achievement considering the impacts from high raw material and energy prices as well as ramp-up costs for our new menthol plant."

The menthol facility delivers flavours for areas such as chewing gum as well as products for its scents division.

“Additional growth is expected from our new menthol production plant which has been operating since the end of June," added Bertram. "We therefore confirm our raised outlook from May and are aiming for sales growth at local currency between 3% and 5% for the full year.”

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