Symrise confirms profitable growth course
Symrise continued on its profitable growth course in the first nine months of the year and achieved organic sales growth of 7.4 %. Taking into account portfolio and exchange rate effects, group sales in the first nine months of the year increased to € 3,610 million (9M 2022: € 3,493 mil-lion), growth of 3.3 % compared to the same period of the previous year.
Both segments contributed to this positive development and grew sales in an economic environment that continues to be challenging worldwide. Sales increased organically in the third quarter by 6.4 %. Negative ex-change rate effects of 9.4 % led to a decline in sales of -3.0 % in the reporting currency. In light of the robust organic growth, Symrise has confirmed its growth and profitability targets, and at the same time extended its long-term growth objectives until 2028.
Dr. Heinz-Jürgen Bertram, chief executive officer of Symrise AG: “In the third quarter, Symrise was able to seamlessly continue the positive sales trend of the previous months. Despite high inflation and sustained volatility in our markets, we are also optimistic for the rest of the year and expect robust demand. Our diversified portfolio and broad international positioning will also help us this year to capitalize on our growth potential and create sustainable value. We are firmly convinced that we have set the right course for the future, which is why we extend our growth targets in the long term until 2028. We are targeting continued organic growth of 5 to 7 % and an EBITDA margin of 20 to 23 %.”
Sales development by region
The Latin America and EAME (Europe, Africa, Middle East) regions recorded the strongest organic growth, with 16.0 % and 15.1 % respectively. The main growth drivers were the Food & Beverage, Pet Food, Fragrance and Cosmetic Ingredients divisions. The Asia/Pacific region achieved solid organic growth of 3.5 %, primarily in the Fragrance, Food & Beverage and Cosmetic Ingredients divisions. Sales development in North America suffered due to the production shutdown at Colonel Island. Organically, sales there were 3.4 % down on the same period of the previous year.
High growth for food, beverage and pet food
The Taste, Nutrition & Health segment increased its sales organically by 9.5 % in the first nine months. In the third quarter, organic growth stood at 6.0 %. Taking into account portfolio and exchange rate effects, the segment’s sales in the first nine months increased to € 2,267 million (9M 2022: € 2,178 million). Last year’s acquisition of Wing Biotechnology in China contributed around € 21 million to growth.The Food & Beverage division achieved high single-digit percentage organic growth. Strong growth momentum came from the business units for sweet and savory products, and beverages. Strong growth was recorded especially in the EAME and Latin America regions. The Naturals business unit increased sales particularly in the Asia/Pacific and Latin America regions.The Pet Food division achieved single-digit percentage organic growth. The EAME and Latin America regions posted double-digit percentage growth. Sales development was dynamic in France, Poland, Brazil, Colombia, and Mexico with pet food products. Probiotics business remained below the previous year’s level and recorded a slight decline in sales in the first nine months mainly due to weaker demand in the North America and EAME regions.
Symrise reaffirms growth and profitability targets
Based on the positive business development in the first nine months, Symrise confirms its growth and profitability targets for the full year 2023. The Group is aiming for organic sales growth of 5 to 7 %. De-spite high inflation and sustained volatility in our markets, profitability should be around 20 % based on an adjusted EBITDA margin. Symrise has also extended its long term targets. By 2028, the company plans to increase Group sales to € 7.5 to € 8.0 billion, supported by annual organic growth of 5 to 7 % (CAGR) and targeted acquisitions. Profitability should remain within a target corridor of 20 to 23 % (EBITDA margin).
Information on the ongoing antitrust proceedings: Symrise is continuing to cooperate in full with the antitrust authorities. The company has still not found any evidence of wrongdoing and continues to believe that all the accusations are unfounded. To date, the facts upon which the investigations are based have not been specified. The Group takes legal obligations and compliance requirements very seriously.