Symrise profits almost double in first quarter

By Katie Nichol

- Last updated on GMT

Related tags Cent Asia-pacific

Increased customer demand and the continuing effects of restructuring measures helped Germany-based Symrise deliver a strong first quarter in 2010.

Group sales at the flavour and fragrance firm grew 13.2 per cent at local currency to a figure of €346.7m (12.8 per cent at actual rates), and group EBITDA rose 42 per cent to €83.3m.

Net income almost doubled compared with the previous year, rising 93 per cent from €20.9m to €40.4m. In addition to sales increases across all regions and business units, Symrise noted that a decline in raw materials prices in certain areas and strict cost management also contributed to a rise in profits.

Successful start to 2010

Symrise CEO Dr. Heinz-Jürgen Bertram noted that heightened customer demand came as the visible signs of market recovery seen in the second half of last year continued into 2010.

Improved economic conditions saw a recovery in mature markets and increased sales across all regions. Particularly strong sales in the company’s emerging markets and with major customers helped to boost figures still further.

Sales in emerging markets grew of 15.4 per cent in local currency, exceeding the growth rate for the group as a whole. This translated into a 1 per cent rise in total sales share for emerging markets, which now represents 44 per cent of group sales.

The Asia-Pacific region witnessed the strongest growth, with a figure of 17 per cent in local currency, and Latin America sales rose 4 per cent, although Symrise noted the corresponding 2009 figures were already high as the region was less affected by the economic crisis.

Sales with the company’s major customers, which contributed 30 per cent to group sales, rose 13 per cent in the first quarter. In the Scent & Care Division, increased sales were largely due to the recovery of Fine Fragrance and the luxury segment of personal care.

Double digit growth in Scent & Care division

The Scent & Care division recorded sales of €204.8m, an increase of 13.9 per cent (14.1 per cent in local currency) on 2009 figures.

Symrise noted that the division was buoyed from the launch of new products including those in the cosmetics area, and double-digit growth rates were recorded across the Asia-Pacific, EAME and North America regions.

The company’s Flavor and Nutrition division also benefited from the recovery of global markets, with sales increasing 12 per cent to €186.2m.

Beverages and Sweet posted above-average growth, and the recently launched Consumer Health application area continues to develop well, the company said, with sales increasing 26 per cent in local currency.

Aim to grow faster than the market

Looking ahead, Bertram said the company was ‘confident’ in being able to meet its objectives for the year.

“We want to continue to grow faster than the market as a whole and achieve an EBITDA margin of more than 20 per cent,” ​he said.

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