January Trading Statement – March 2022
Holzminden, April 27, 2022
Symrise successfully starts fiscal year 2022
– Sales growth up 14.9% in reference currency in the first quarter
– Group increase in sales to 1.1 billion euros
– Organic growth of 8.3%
– Targets for 2022 and medium-term objectives until 2025 confirmed
Symrise AG has successfully started the new financial year. The Group increased its sales in presentation currency by 14.9% to €1,090.6 million (Q1 2021: €949.6 million million). Symrise benefited from continued strong demand and positive portfolio and currency translation effects. In organic terms, the Group recorded strong sales growth of 8.3% after the good quarter of the previous year (10.5%). Good commercial momentum in both segments contributed to this development.
“At the beginning of the year, Symrise continued without problemsed the positive trade trajectory of the previous year. Our customers’ ordering behavior clearly indicates that consumers have become more active again with the reduction of many coronavirus-related restrictions. This applies to travel and areas such as gastronomy and leisure. As a result, demand has increased for application areas such as sun protection and fine fragrances, as well as for beverages.e culinary products,” said Dr. Heinz-Jürgen Bertram, chef
Managing Director of Symrise AG. “As the year progresses, we will see an increased level of volatility in business environment due to the war in Ukraine and the ongoing fight against the pandemic. Nevertheless, we anticipate reliable demand and are confident that we are well positioned for the months ahead. We are consistently implementing our growth initiatives and continue to target organic sales growth of 5-7% with an expected EBITDA margin of around 21% for the current year.”
Scent & Care with high demand for cosmetic ingredients
Scent & Care, the fragrances, perfumery applications and cosmetic ingredients business, generated sales of €419.3 million and growth of 12.4% (Q1 2021: €373.2 million) from year to year. Sales increased organically by 4.9%.
The Perfumes division posted a satisfactory commercial trajectory. Previously, the luxury segment was heavily impacted by the pandemic but has seen a steady recovery over the past few months. Our Fine Fragrances application area particularly benefited, posting double-digit percentage growth year-on-year. In the Consumer Fragrances application area, demand for hygiene and cleaning products in particular was lower than in the previous year.
The Aroma Molecules division grew sales organically in the mid-single digit range. Notably, the demand for menthol was at a high level. The division recorded the strongest growth in the North America and Asia/Pacific regions. However, delays in global supply chains have tended to impact the division as a whole.
Sales of the Cosmetic Ingredients division developed very positively during the first quarter of the current year with double-digit organic percentage growth. The main growth drivers were the EAME regions (Europe, Africa, Middle East) and Latin America. In particular, the application area of sunscreen products has grown dynamically due to the increase in international travel activity and the return to more widespread leisure activities.
Taste, Nutrition and Health Achieve Significant Growth with Pet Food and Beverage Applications
The Taste, Nutrition & Health segment, which includes all activities related to taste solutions for food and beverages, pet food and health solutions, increased sales by 16.5% to 671.3 million euroson (Q1 2021:
€ 576.4 million). Organic growth reached 10.5%. All regions contributed to this positive result. The Latin America region was by far the strongest driver of growth.
In the Food & Beverage division, newly reinvigorated leisure activities and increased out-of-home consumption have driven strong demand for beverage and savory applications. The Latin America and Asia/Pacific regions posted the highest growth rates.
The Pet Food division continued its strong double-digit growth with all regions contributing to this result. By expanding its capabilities in China, North America, Brazil and France, Symrise has already laid the foundation for accelerated expansion of the pet food applications business.
The targeted expansion of the portfolio in the Taste, Nutrition and Health segment is closely aligned with customer requirements. The recent acquisitions of Giraffe Foods in Canada, Schaffelaarbos in the Netherlands and, in the future, Wing Pet Food in China contribute to this.
Confident for the current financial year despite a difficult market environment
Despite the current volatile market environment resulting from the war between Russia and Ukraine, global supply disruptions and the continued tangible impacts of the coronavirus pandemic, Symrise considers itself well positioned to continue profitable growth. The company is confident in its robust business model, diverse application portfolio, and broad regional presence and customer base.
Symrise therefore confirms its long-term growth and profitability objectives and continues to expect faster growth than the relevant market. The company is targeting a compound annual growth rate (CAGR) of 5-7%.
Profitability should remain at a high level for 2022 with an EBITDA margin of around
21%. This objective also applies despite the fact that Symrise expects headwinds on the cost side due to rising raw material prices. In the medium term, Symrise is targeting an EBITDA margin of between 20 and 23% until the end of the 2025 financial year.
Symrise is a global supplier of fragrances, flavors, food, nutritional and cosmetic ingredients. Its customers include manufacturers of perfumes, cosmetics, food and beverages, pharmaceuticals and producers of nutritional products. supplements and pet food. Its sales of € 3.8 billion in fiscal year 2021 makes Symrise a leading global provider.
Based in Holzminden, Germany, the Group is represented by more than 100 locations in Europe, Africa, the Middle East, Asia, the United States and Latin America. Symrise works with its customers to develop new ideas and market-ready concepts for products that are an integral part of everyday life. Economic success and corporate responsibility are inextricably linked in this process. Symrise – ever more inspiring…
– Annual general meeting
– Half-year results January – June 2022
– Group interim report January – September 2022 (trading update)