DGAP-News: Symrise AG Achieves Sales Increase and Gains Market Share at Ongoing High Profitability
(firmenpresse) - DGAP-News: Symrise AG / Key word(s): Interim Report
Symrise AG Achieves Sales Increase and Gains Market Share at Ongoing
High Profitability
07.08.2013 / 07:00
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- Group sales rise by 10 % at local currency
- Emerging Markets show strongest growth with 12 % increase
- EBITDA increases by 11 % at local currency
- Continuing investments in future growth
Holzminden, August 7, 2013 Symrise AG further increased its pace in the
second quarter and notably strengthened sales and earnings in the first
half of 2013. The Group grew in both divisions and across all regions and
increased sales to EUR 934.7 million (H1 2012: EUR 871.6 million). This
corresponds to an increase of 9.5 % at local currency. Earnings before
interest, tax, depreciation and amortization (EBITDA) rose to EUR 191.2
million. With an EBITDA margin of 20.5 %, Symrise once again achieved a
high profitability level despite continuing investments in capacity and
personnel expansions.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG: 'Symrise also substantially
grew in the second quarter - achieving strong figures in both the emerging
and developed markets. With an increase of 14 % at local currency, North
America was the region posting the strongest sales growth. EAME, which was
impacted last year, saw a good recovery and also achieved solid sales
growth. In our operations, we continued at full speed: We introduced a
number of new cosmetic ingredients and consolidated our powder mixing
operations for flavor manufacturing under one roof at our headquarters in
Holzminden; we also brought additional capacities into operations. After a
robust start in the first half, we are entering into the second half of our
anniversary year from a strong position. We will continue to implement our
business expansion plans, adding new and innovative product solutions to
our portfolio. In addition, we will enhance our position in both,
industrialized nations and Emerging Markets.'
Growth in all Regions
In the first half of 2013, Symrise increased sales by 7.2 % in the
reporting currency to EUR 934.7 million (H1 2012: EUR 871.6 million). At
local currency, sales were up by 9.5 %. Every region and both divisions
contributed to this result. North America posted the strongest growth with
sales up by 13 % (14 % at local currency) in the first half. The second
largest gains were made in Asia/Pacific, with a sales increase of 10 % (13
% at local currency). Compared to the previous year, notably improved
figures were recorded in EAME: the region achieved a pleasing sales growth
of 5 % (6 % at local currency) thanks to especially good dynamics in
Eastern Europe. As expected, Latin America developed modestly compared to
its above-average growth in previous years, realizing a sales growth of 3 %
(10 % at local currency).
EBITDA of EUR 191.2 Million Reflects Sales Growth and Investments
Symrise's profitability especially benefited from the company's robust
sales in the first half of 2013. A slight relaxation in the prices for
chemical raw materials also had a positive impact. By contrast, expenses
increased for the continued expansion of capacities in sales as well as in
research and development. In fact, R&D expenses saw the strongest increase
and grew by 13 % year on year due to the full project pipeline.
Nonetheless, earnings before interest, tax, depreciation and amortization
(EBITDA) rose by 11 % at local currency to EUR 191.2 million (H1 2012: EUR
174.0 million). Symrise therefore remained highly profitable, achieving an
EBITDA margin of 20.5 %.
Net income for the reporting period rose by 12 % to EUR 93.4 million (H1
2012: EUR 83.5 million). Earnings per share correspondingly increased to
EUR 0.79 after EUR 0.71 in the first half of 2012.
High Utilization Supports Cash Flow from Operating Activities
Cash flow from operating activities increased by 23 % to EUR 77.0 million
(H1 2012: EUR 62.5 million). This was mainly due to the strong increase in
sales and solid earnings in the first half. The ratio of net debt including
pension provisions to EBITDA amounted to 2.5 as of June 30, 2013; despite
the dividend distribution totaling EUR 77 million the ratio thus only
slightly changed compared to the level of the year end 2012 (Dec. 31, 2012:
2.4).
Emerging Markets Post High Sales Growth of 12 %
As part of its strategy, which aims at profitable growth, Symrise continues
to advance its activities in the Emerging Markets. Symrise grew sales by 12
% at local currency in these rapidly expanding markets, thereby exceeding
the Group's overall growth rate. The Emerging Markets' share of total sales
rose to 48 % (H1 2012: 47 %).
Scent&Care Division
The Scent&Care division expanded its business in every region and boosted
its sales to EUR 490.3 million. Compared to the prior year period, this
corresponds to a sales increase of 10.3 % (12.5 % at local currency). The
production capacities for menthol, which were expanded in 2012, have been
well utilized. Scent&Care also benefited from high demand in the areas of
Oral Care and Fine Fragrances as well as cosmetic ingredients. In the
second quarter, Symrise was once again recognized for its innovative
strength and received three awards for new substances.
Scent&Care achieved its strongest growth in North America with sales up
18 % at local currency; greatest contributions came from the Aroma
Molecules and Fragrances business units. The fragrance activities acquired
from Belmay in 2012 also contributed. In Asia/Pacific, the division
generated a double-digit sales growth of 17 % at local currency. EAME
increased sales by 9 % at local currency and Latin America was up by 8 % at
local currency.
Scent&Care increased its EBITDA by 21 % to EUR 98.4 million (H1 2012: EUR
81.0 million). The EBITDA margin was at a pleasing level of 20.1 % (H1
2012: 18.2 %).
Flavor&Nutrition Division
Flavor&Nutrition increased sales by 4 % to EUR 444.4 million (H1 2012:
EUR 427.2 million). At local currency, this corresponds to a growth of 7 %.
Applications for culinary products and snacks as well as Consumer Health
particularly benefited from high demand. The strongest growth was recorded
in Latin America with a sales increase of 13 % at local currency. The
second-strongest region was Asia/Pacific, which posted 9 % growth at local
currency. In North America, sales were up by respectable 8 % at local
currency, despite high figures from the previous year. The EAME region
continued its positive developments from the first quarter and increased
sales by 4 % at local currency. Ample demand in emerging markets of Eastern
Europe as well as in the established Western European markets contributed
to the good growth. To the contrary, demand was weaker in Southern European
countries.
Flavor&Nutrition generated an EBITDA of EUR 92.8 million (H1 2012: EUR
93.0 million). Despite sustained high prices for natural raw materials and
additional investments relating to new customer and research projects,
EBITDA remained in line with the previous year. The EBITDA margin of 20.9 %
(H1 2012: 21.8 %) was slightly higher than the Group's figure.
Outlook
Overall, Symrise expects robust demand to continue in the second half of
2013. Apart from some regional markets, the Group also expects good
dynamics across all regions. Symrise therefore confirms its goal for 2013
to once again notably exceed growth of the global market for fragrances and
flavors, which is estimated to be between 2 % and 3 %. Additionally,
Symrise continues to work systematically towards its medium-term targets
set for the 2020 fiscal year. According to these, the Group wants to
achieve an annual sales growth (CAGR) of between 5 % and 7 % with an EBITDA
margin between 19 % and 22 %.
Key Figures Of The Group
H1 2012 1 CHANGE IN %
(IAS 19 H1 H1 CHANGE at local
EUR MILLION rev.) 2012 2013 IN % currency
Sales 871.6 934.7 7.2 9.5
EBITDA 179.2 174.0 191.2 10 11
EBITDA
margin in % 20.0 20.5
EBIT 136.0 130.8 147.4 13 14
EBIT margin in % 15.0 15.8
Net income 86.7 83.5 93.4 12
Earnings in
per share EUR 0.73 0.71 0.79 12
CAPEX 31.6 98.5 212
Operating
cash flow 62.5 77.0 23
Scent?&?Care
Sales 444.4 490.3 10.3 12.5
EBITDA 83.2 81.0 98.4
EBITDA
margin in % 18.2 20.1
Flavor?&?Nutrition
Sales 427.2 444.4 4.0 6.5
EBITDA 95.9 93.0 92.8
EBITDA
margin in % 21.8 20.9
1 previous year's figures have been adjusted as a result of changes to
accounting policies
DEC. 31, JUNE 30,
2012 1 2013
EUR
Balance sheet total million 2,150.2 2,263.7
Equity ratio in % 40.9 39.9
Net debt (incl. pension prov.and
similar obligations)/EBITDA ratio 2.4 2.5
Employees FTE?2 5,669 5,930
1 previous year's figures have been adjusted as a result of changes to
accounting policies.
2 not including apprentices and trainees; FTE = Full Time Equivalent
About Symrise:
Symrise is a global supplier of fragrances, flavorings, cosmetic active
ingredients and raw materials as well as functional ingredients. Its
clients include manufacturers of perfumes, cosmetics, food and beverages,
the pharmaceutical industry and producers of nutritional supplements.
Its sales of EUR 1.735 billion in 2012 place Symrise among the top four
companies in the global flavors and fragrances market. Headquartered in
Holzminden, Germany, the Group is represented in over 35 countries in
Europe, Africa, the Middle East, Asia, the United States and Latin America.
Symrise works with its clients to develop new ideas and market-ready
concepts for products that form an indispensable part of everyday life.
Economic success and corporate responsibility are inextricably linked as
part of this process. Symrise thus takes sustainability into account in
every part of its corporate strategy. The company was awarded the German
Sustainability Award in 2012. Symrise - always inspiring more.
Media contact: Investor contact:
Bernhard Kott Tobias Erfurth
Phone +49 (0)5531 90-1721 Phone +49 (0)5531 90-1879
bernhard.kott(at)symrise.com tobias.erfurth(at)symrise.com
End of Corporate News
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Language: English
Company: Symrise AG
Mühlenfeldstraße 1
37603 Holzminden
Germany
Phone: +49 (0)5531 90 0
E-mail: ir(at)symrise.com
Internet: www.symrise.com
ISIN: DE000SYM9999
WKN: SYM999
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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224530 07.08.2013
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