Flavours and fragrances company Symrise achieved the highest sales and earnings figures in its history in its 2012 financial year. The company increased sales by 10% (6% in local currency) to €1,735 million.
Of the established markets, Symrise said that North America showed the most dynamic growth at 17%. Among emerging markets – whose share of sales rose from 46 % to 48 % – Latin America posted the strongest growth at 20%. Asia Pacific grew by 15%. In EMEA, ecocnomic weakness – especially in southern Europe – was offset by positive developments in Eastern Europe, Russia and Africa, resulting in 2% growth.
Symrise remained highly profitable despite increased raw materials prices and start-up costs for the doubling of its menthol capacities. EBITDA increased by 7 % to € 339 million and the EBITDA margin reached its targeted level of about 20 %.
“For Symrise, 2012 was a new record year,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise. “We increased sales by 10 % and thus exceeded both, market growth as well as our own targets. Symrise saw significant gains – both in Emerging Markets as well as in established markets such as North America. With a strong increase in EBITDA, we kept our profitability at a high level, despite increased raw material costs and one-off expenses. Earnings per share improved to € 1.33. The Executive and Supervisory Boards will propose increasing the dividend for the Fiscal Year 2012 to € 0.65 at the Annual General Meeting.”
“In view of our balanced positioning with customer groups, products and regions as well as our investments in rapidly expanding business areas, we consider ourselves well equipped for 2013. Once again, we aim to grow faster than the market for fragrances and flavours. For the first time, we have also formulated long-term targets, which underscore our strategic commitment, which aims at sustainable, profitable growth: By 2020 we want to increase sales by € 1 billion and achieve an EBITDA of more than € 500 million.”
Symrise’s flavour and nutrition business grew by 9 %; according to the company, the division grew in all application areas, with savoury and beverage applications as well as sweets generating particularly high growth rates. Strong contributions also came from activities in emerging markets.
The highest growth rate was seen in Asia/Pacific and North America, with each posting an increase in sales of 8 % at local currency. The Chinese market played a particularly key role for the positive developments seen in Asia/Pacific. Symrise has been present there for 30 years and plans to expand its activities in 2013 and 2014 with further investments.
Sales growth in North America was mainly attributable to new business throughout all application areas. Latin America posted an increase of 7 % at local currency and generated major gains with both, global and local customers. In the EAME region, sales were up by 4 % at local currency.
