Report on the First Half of 2009: Symrise Remains Highly Profitable
in Difficult Market
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ * Stable sales * Restructuring expenses impact earnings position * EBITDA margin adjusted for restructuring expenses amounts to 18.9% in first half year; 20.2% in second quarter * Strong operating free cash flow totals ? 62.8 millionSymrise AG held its ground well in the first half of 2009 despite apersistently difficult market environment. In a declining totalmarket, the Group achieved stable sales. Although its earningsposition was burdened with high raw material prices as well asrestructuring and integration expenses, Symrise generated an EBITDAmargin of 17.3%.Dr. Heinz-Jürgen Bertram, Symrise's Chief Executive Officer,explained, "Symrise has performed well in a still difficult marketenvironment. We implemented a number of restructuring measures in thefirst half of 2009 and are already beginning to see the firstresults. However, the full effect of these measures will not be feltuntil beginning of next year. The adjusted EBITDA margin of over 20%in the second quarter demonstrates that Symrise is operationally ingood shape."Sales rose from ? 676.0 million to ? 685.1 million in the first sixmonths. This represents an increase of 1% (at local currency: -1%)compared to the strong prior-year period.Especially in the South America region, sales grew dynamically by 15%(at local currency: 22%). In North America, the acquisitions made inthe previous year contributed significantly to sales, which grew 31%(at local currency: 19%). In the Asia-Pacific region, sales increasedby 5% (at local currency: -1%). The EAME region, whichproportionately has the highest sales, continued to be adverselyaffected by the recession in major sales markets as well as continuedcustomer destocking during the first half. Here, sales fell by 10%(at local currency: -9%). However, a slight rebound could be seen inthe course of the second quarter.First positive effects of restructuring measuresSymrise remained highly profitable in the first half of 2009. Inaddition to the subdued sales growth, high raw material prices aswell as restructuring and integration expenses continued to put astrain on the earnings position. However, the Group succeeded indefending the price increases implemented in recent months in thisdifficult environment. Moreover, Symrise realized its first costsavings from restructuring measures implemented in the first sixmonths.Symrise achieved earnings before interest, taxes, depreciation andamortization (EBITDA) of ? 118.6 million (previous year: ? 142.9million) in the reporting period. This corresponds to an EBITDAmargin of 17.3%, following 21.1% in the same period last year.Adjusted for restructuring expenses, the EBITDA margin reached 18.9%.In the second quarter, the earnings position already reflected thefirst positive effects of the restructuring measures, resulting in anadjusted EBITDA margin of 20.2%, compared with 17.6% in the firstquarter.Underlying net income for the first half amounted to ? 61.9 million(previous year: ? 69.7 million). Accordingly, underlying earnings pershare fell from ? 0.59 to ? 0.52. In the second quarter, the amountwas ? 0.28 and, thus, on the same level as the correspondingprior-year quarter (? 0.29).Strong operating free cash flowBy means of diligent management of its working capital, Symriseconsiderably increased the operating free cash flow in the first halfof 2009 from ? 22.6 million to ? 62.8 million. On June 30, 2009, thenet debt of the Group amounted to ? 647 million, thereby slightlyexceeding the level on December 31, 2008 (? 642 million). By placinga ? 75 million promissory note loan, Symrise took the first steps toimprove the maturity profile of its debts. With an equity ratio of33.5%, the Group's financial position as of the end of June isextremely solid.Growth still driven by major customersSymrise again saw growth generated by its major customers in thefirst half of 2009. Sales from the ten largest customers rose 5.0% inthe Scent & Care division (at local currency: 0.2%) and 3.1% in theFlavor & Nutrition division (at local currency: 1.6 %). Thus, Symrisenow generates 29% of its consolidated sales from this customer group.Scent & Care also gained an important core list position in the firsthalf; moreover, both divisions won attractive new projects. "Thismakes us confident regarding the second half of 2009," CEOHeinz-Jürgen Bertram commented.Scent & Care - stable sales, optimized structures in EAMEThe Scent & Care division profited from the dynamic growth in SouthAmerica as well as from sales growth in the North America andAsia-Pacific regions. They were able to largely compensate for thedecline in sales in the EAME region, which is strongly affected bythe recession. The Scent & Care division, thus, kept sales stable inthe first half with ? 343.6 million, compared to ? 342.7 million inthe previous year (at local currency: -2%). If the effects of theacquisitions made in 2008 are taken into account, sales in thedivision decreased by 3% (at local currency: -6%). The LifeEssentials division was a major sales driver while the demand in theluxury divisions Personal Care and Fine Fragrances continued to besubdued.The division's EBITDA decreased from ? 67.5 million in the previousyear to ? 50.6 million. Scent & Care implemented targeted measures inthis reporting period to improve the cost structure, optimize thesupply chain and consolidate production. A location in Spain wasclosed, and the closing of an additional plant in Switzerland wasinitiated in order to bundle the entire production for the EAMEregion in Holzminden, Germany. Adjusted for restructuring costs, thedivision's EBITDA amounted to ? 57.8 million, the adjusted EBITDAmargin was at 16.8%.Flavor & Nutrition - Sales Growth and Process OptimizationSales in the Flavor & Nutrition division rose by 3% to ? 341.5million (previous year: ? 333.3 million). Adjusted for exchange rateeffects, revenues grew by 1%. Here, growth was also driven by theregions South and North America and by transactions with majorcustomers. In North America, the integration of Chr. Hansen Flavorsin 2008 had a positive effect on sales performance. If the effect ofthe acquisition made in 2008 is taken into account, sales in thedivision decreased by 2% (at local currency: -4%). The divisionexpanded its innovation platform in the reporting period byestablishing a new Health & Nutrition competence center.The earnings position of the Flavor & Nutrition division was alsoaffected by destocking, high raw material prices and restructuringexpenses. EBITDA in the first half amounted to ? 68.0 million(previous year: ? 75.4 million). Adjusted for restructuring expenses,the division achieved EBITDA of ? 71.5 million and, thus, an adjustedEBITDA margin of 20.9%. The restructuring measures focused on theoptimization of production structures, among other things the closingof a location in Western Europe, and on the improvement of businessprocesses.Outlook"We confirm our expectations for the year 2009," attestedHeinz-Jürgen Bertram. "The Flavor & Fragrance market will presumablyshrink slightly this year. Customers continue to destock and thecosts of important raw materials remain at a high level.Nevertheless, we expect that the sales development of Symrise willcontinue to be better than the overall market development and that wewill generate a strong cash flow in 2009 as well."Key Financial Figures for the First Half of 2009 Change H1 | 2009 in % (actual Change H1 | 2008 in ? exchange in % (local in ? millions millions rates) currency)Sales 676.0 685.1 1.4 -0.8 - Scent & Care 342.7 343.6 0.3 -2.3 - Flavor & 2.5 0.7Nutrition 333.3 341.5EBITDA -17 -21EBITDA margin in % 142.9 118.6Adjusted EBITDA 21.1 17.3margin in % 21.1 18.9EBITA 123.6 96.5 -22 -26EBITA margin in % 18.3 14.1EBIT 107.9 77.1 -29 -32EBIT margin in % 16.0 11.2Net income for the -33period 60.8 41.0Earnings per share 0.51 0.35 -33Adjusted earnings -11 -17per share 0.59 0.52Operating free cashflow 22.6 62.8Employees (on 12/31/2008 6/30/2009reporting date)* 5,097 5,015* FTE, withoutapprentices andtraineesAbout SymriseSymrise is a global supplier of fragrances, flavorings and rawmaterials as well as active ingredients for the perfume, cosmeticsand food industry.Its sales of ? 1.32 billion in 2008 place the Company among the topfour in the international flavor and fragrance market. Headquarteredin Holzminden, Germany, Symrise is represented in more than 35countries in Europe, Asia, the United States and South America.Used by manufacturers of perfumes, cosmetics and foods, ourinnovative products are an inseparable part of daily life. At Symrisewe combine an awareness of consumer trends with cutting-edgetechnologies, focusing on developing innovative fashion and lifestyleproducts that have additional practical value for the consumer.Symrise - always inspiring more...www.symrise.comFor press queries, contact: For investor queries, contact:Katja Derow, red roses Dr. Andrea RolveringcommunicationsTel.: +49 (0)40 46 96 77 010 +49 (0)69 75 93 75 94Email: k.derow(at)redroses-pr.com andrea.rolvering(at)symrise.comhttp://hugin.info/137217/R/1333003/315845.pdf --- End of Message ---Symrise AGMühlenfeldstraÿe 1 Holzminden GermanyWKN: SYM999; ISIN: DE000SYM9999; Index: MDAX, TecDAX;Listed: Regulierter Markt in Frankfurter Wertpapierbörse, Freiverkehr in Bayerische Börse München, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Prime Standard in Frankfurter Wertpapierbörse;
Datum: 06.08.2009 - 07:30 Uhr
Sprache: Deutsch
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