Symrise: business with top 10 customers and emerging markets supports growth

Symrise AG increased sales and maintained profitability at a high level in the first half of 2011. In the first six months of the current financial year Symrise posted an increase in Group revenues of approximately 2% to € 811.8 m (previous year: € 797.5 m). The sales increase was 2.6% at local currency. The Asia/Pacific region exhibited the strongest growth followed by Latin America and EAME. Emerging Markets did not continue their extraordinarily high growth rate of the previous year, but continued to grow above average in H1. Sales generated in Emerging Markets as a whole rose 4% and accounted for 46% of Group sales.

However, the market environment turned gloomy in certain segments and regions in the second quarter. Earnings were affected by high raw material costs and negative currency effects. Nonetheless Symrise achieved an EBITDA margin of 20%. The primary contributors were persistent cost management and the conscious divestment of less profitable businesses. Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: “Following the enormous catch-up effect during the previous year and a good first quarter, market growth slowed in the recent months. Whereas the flavour business continued to grow, the demand for fragrances declined. Nonetheless, Symrise continued to grow throughout the first half of the year. We achieved the targeted EBITDA margin of 20%. We consider this to be a respectable achievement in view of the continually high raw material prices and unfavorable exchange rate effects.”

www.symrise.com