Symrise pledges to outperform flavours and fragrance rivals
Earnings before interest, taxes, depreciation and amortization (EBITDA) were 20.7% of sales in the first nine months and the company says aims to keep its margin within the range of 19-22% to 2020, with sales rising 5-7% a year. EBITDA was €290.2m on sales of €1.4bn in the first nine months.
Flavour and Nutrition sales grew 2.5% to €664.9m during the period, and while margins remained in line with those of the business as a whole, EBITDA decreased slightly to €139m, compared to €140.9m in the first nine months of 2012 – a decline the company attributes to costs associated with new R&D projects and the development of a sales organisation in the Asia Pacific region.
However, the Scent and Care division was a stronger sales driver for the firm, growing 10% in the nine-month period compared to a year earlier, to €736.3m. The company said the increase was mainly due to last year’s expansion of its menthol production and its acquisition of US air freshener firm Belmay in the first quarter.
Symrise CEO Dr Heinz-Jürgen Bertram said in a statement: “Symrise has carried strong momentum into the second half of the year. We successfully left behind slight economic slowdowns, which occurred in certain markets. Along with high demand, our investments paid off: The new menthol capacities were well utilized and the US fragrance activities acquired at the beginning of the year provided an additional boost to our fragrance business. For the remaining weeks of 2013, we are confident on the continuation of Symrise’s robust development. We plan to once again grow faster than the market and end the fiscal year as one of the most profitable companies in the industry.”
The company’s share price was up 6% in morning trading to €33.01.
