DGAP-News: Symrise AG achieves Strong Growth in Sales and Earnings
(firmenpresse) - DGAP-News: Symrise AG / Key word(s): Interim Report
Symrise AG achieves Strong Growth in Sales and Earnings
05.11.2013 / 07:00
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- Group sales increase by 10 % at local currency to EUR 1.4 billion
- Emerging Markets exceed Group growth with sales up by 11 % at local
currency
- EBITDA increase of 10 % to EUR 290.2 million
- EBITDA margin increases to 20.7 %
Symrise AG continued its robust growth in the third quarter of 2013 with
strong momentum. The Group increased sales to EUR 1,401.2 million in the
first nine months of 2013; at local currency this translates into an
increase of 10 %. Earnings before interest, taxes, depreciation and
amortization (EBITDA) grew by 12 % at local currency to EUR 290.2 million.
With an EBITDA margin of 20.7 %, Symrise remains one of the most profitable
companies in the industry. Both divisions and every region contributed to
this positive performance. In the Emerging Markets Symrise was able to
increase sales by 11 % at local currency, thereby exceeding the Group's
overall growth rate.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG said: '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.'
Double-Digit Growth in Nearly All Regions
In the first nine months of the current fiscal year, Symrise increased its
sales by 6 % in reporting currency to EUR 1,401.2 million (9M 2012: EUR
1,319.6 million). At local currency, this corresponds to a 10 % increase.
North America was the strongest region, generating sales growth of 15 % at
local currency. Symrise benefited from both, its existing business and the
fragrance activities acquired from Belmay at the start of the year. Latin
America was the second strongest region, posting a sales increase of 12 %
at local currency. The Asia/Pacific region came in third with a sales
increase of 11 %. Meanwhile, EAME was able to leave the difficult
developments of the previous year behind - achieving solid growth of 7 % at
local currency.
High Profitability with an EBITDA Margin of 20.7 %
Due to good utilization rates and ongoing cost management, the cost of
sales was disproportionately low. Price decreases for certain raw materials
also contributed to this positive development. Earnings before interest,
taxes, depreciation and amortization (EBITDA) increased by 10 % (12 % at
local currency) in the first nine months to EUR 290.2 million (9M 2012: EUR
264.4 million). With an EBITDA margin of 20.7 %, Symrise remained highly
profitable during the reporting period.
Net income rose by 11 % to EUR 139.9 million (9M 2012: EUR 125.9 million)
in the reporting period. As a result, earnings per share rose from EUR 1.07
to EUR 1.18.
Strong Development in Cash Flow from Operating Activities
Cash flow from operating activities grew by more than 27.7 % to EUR 176.2
million (9M 2012: EUR 138.0 million). The ratio of net debt (incl. pension
provisions) to EBITDA amounted to 2.2 (December 31, 2012: 2.4). Symrise
therefore has sufficient financial leeway to further implement its growth
strategy.
Sales in the Emerging Markets Outpace Group Growth
Symrise also benefited from sustained strong momentum in the Emerging
Markets. Sales in these regions were up by 11 % at local currency and
therefore exceeded the Group's overall sales growth. The share of overall
sales generated in the Emerging Markets totaled 48 %.
Scent&Care Division
The Scent&Care division grew sales by 10 % (14 % at local currency) to
EUR 736.3 million (9M 2012: EUR 670.6 million) and particularly benefited
from higher demand in the Aroma Molecules and Fragrances business units.
The expanded menthol production capacities added last year and the
fragrance activities acquired from Belmay in the first quarter also
contributed to the positive development. Moreover, both measures underscore
Symrise's strategy of investing in value creation aligned with market and
customer needs.
The division posted its strongest growth in North America with sales up by
20 % at local currency. The Asia/Pacific region also generated strong
growth and achieved a sales increase of 15 % at local currency compared to
the previous year's period. In Latin America, Scent&Care sales increased
by 11 % at local currency despite high comparables from the previous year.
The EAME region experienced a significant recovery from the previous year
with 10 % sales growth at local currency. This can be particularly
attributed to activities in the Aroma Molecules and Life Essentials
segments.
EBITDA in the Scent&Care division increased by 22.5 % to EUR 151.2
million (9M 2012: EUR 123.5 million). The EBITDA margin improved to 20.5 %
compared to 18.4 % in the previous year.
Flavor&Nutrition Division
Flavor&Nutrition increased sales by 2.5 % during the reporting period to
EUR 664.9 million (9M 2012: EUR 649.0 million). At local currency, this
corresponds to a 6.2 % increase.
The division benefited from especially high demand for products from the
Sweet and Savory application areas. The Consumer Health business unit also
developed positively. Regionally, Flavor&Nutrition achieved its greatest
sales growth in Latin America with an increase of 16 % at local currency.
The second strongest region was Asia/Pacific with an increase of 7 % at
local currency, followed by North America which grew 6 % at local currency.
The positive developments from the first half also carried over in the EAME
region. Solid demand was seen in the Emerging Markets of Eastern Europe,
the Near and Middle East as well as in the established markets of Western
Europe, which resulted in a sales increase of 4 % at local currency for the
region.
Flavor&Nutrition generated an EBITDA of EUR 139.0 million (9M 2012: EUR
140.9 million). The slight decrease compared to the previous year's period
can be attributed to the development of the sales organization in
Asia/Pacific as well as costs related to new R&D projects. Despite these
investments, the EBITDA margin of 20.9 % (9M 2012: 21.7 %) remains at a
good level.
Confident Outlook for the Fourth Quarter
Thanks to the strong sales and earnings developments of the first nine
months, Symrise has entered well-positioned into the fourth quarter. The
Group expects sustained robust demand and positive market dynamics for all
regions and in both divisions. As a result, Symrise is confirming its goal
of once more growing faster than the global market for fragrances and
flavors in 2013. Beyond this, Symrise aims to remain among the most
profitable companies in the industry. The Group continues to strive for the
objectives it set for the fiscal year 2020: Sales growth (CAGR) should
amount to between 5 and 7 % per year and the EBITDA margin should develop
within the range of 19 and 22 %.
Key Figures Of The Group:
9M 2012 CHANGE IN %
(ADJUST- 9M9M CHANGE at local
EUR MILLION ED)*1 2012 2013 IN % currency
Sales 1,319.6 1,401.2 6.2 9.9
EBITDA 270.4 264.4 290.2 10 12
EBITDA margin in % 20.0 20.7
EBIT 206.2 200.2 223.8 12 14
EBIT margin in % 15.2 16.0
Net income 129.7 125.9 139.9 11
Earnings per share
in EUR 1.10 1.07 1.18 11
CAPEX 47.0 114.2 143
Operating cash flow 138.0 176.2 28
Scent?&?Care
Sales 670.6 736.3 9.8 13.5
EBITDA 126.1 123.5 151.2
EBITDA margin in % 18.4 20.5
Flavor?&?Nutrition
Sales 649.0 664.9 2.5 6.2
EBITDA 144.3 140.9 139.0
EBITDA margin in % 21.7 20.9
DEC. 31, SEP 30,
EUR MILLION 2012*1 2013
Balance sheet total 2,150.2 2,231.4
Equity ratio in % 40.9 41.8
Net debt (incl. pension provisions and
similar obligations)/EBITDA ratio 2.4 2.2
Employees FTE*?2 5,669 5,962
*1 previous year's figures have been adjusted as a result of changes to
accounting policies IAS 19 rev.
*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:
Bernhard Kott
Phone +49 (0)5531 90-1721
bernhard.kott(at)symrise.com
Investor contact:
Tobias Erfurth
Phone +49 (0)5531 90-1879
tobias.erfurth(at)symrise.com
End of Corporate News
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05.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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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: DE000SYM9999WKN: 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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237749 05.11.2013
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