Symrise achieves strong sales growth in the first half of 2022

DGAP-News: Symrise AG

/ Key phrase(s): Quarterly / Interim Statement/Half Year Results

Symrise achieves strong sales growth in the first half of 2022 (information with extra options)02.08.2022 / 07:30 The issuer is solely liable for the content material of this announcement.Press Release—Holzminden, Germany, August 2, 2022Interim Group Report January – June 2022

Sales improve of 18.5 % to € 2.3 billion
Organic growth of 10.2 %
High profitability with EBITDA margin of 21.5 %
Growth forecast revised upward: Organic sales of considerably above 7 % /EBITDA margin of round 21%

Symrise AG continues its growth course in the first half of 2022. The firm noticed a strong improve in sales and revenue. Organic sales growth got here to 10.2 %. Taking portfolio and change charge results into consideration, sales in the reporting foreign money elevated by 18.5 % to € 2,260 million (H1 2021: € 1,908 million). Earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) elevated by 15.7 % to € 486 million in comparison with the identical interval in the earlier 12 months. The Group’s profitability reached a superb stage of 21.5 %, barely under the earlier 12 months’s determine of 22.0 % primarily on account of larger uncooked materials and working prices. At € 229 million, internet earnings for the first six months exceeded the earlier 12 months’s determine of € 196 million by 16.6 %. In mild of its stable efficiency in the first half of the 12 months, Symrise is elevating its forecast for the 12 months as an entire and is now focusing on natural sales growth of considerably above 7 % (beforehand 5 to 7 %) and an EBITDA margin of round 21 %.

“In a unstable enterprise setting attributable to rising commodity costs, ongoing international provide bottlenecks and the Russia-Ukraine conflict, we managed to proceed on our worthwhile growth course. We achieved this by counting on our strong enterprise mannequin, diversified utility portfolio and broad regional presence and buyer base. Demand elevated considerably in many areas. Customers have notably elevated their demand for functions for cosmetics, wonderful fragrances and pet meals. Solutions for drinks and meals have additionally carried out very nicely and significantly contributed to the double-digit natural growth,” says Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG. “In mild of the dynamic enterprise improvement, now we have raised our sales forecast and are actually focusing on natural sales growth of considerably above 7 % for the present fiscal 12 months. While commodity and power costs proceed to extend, we wish to preserve profitability at a excessive stage with an EBITDA margin of round 21 %.”

Growth in the Group

The Symrise Group achieved sales growth of 18.5 % in the first half of 2022. The acquisition of the Fragrance and Aroma Chemicals enterprise of Sensient, the acquisitions of Giraffe, Schaffelaarbos, Groupe Néroli and Romani, and the sale of the Velcorin and colour enterprise exerted a optimistic influence on sales improvement totaling € 59 million. Excluding portfolio and change charge results, natural sales growth amounted to 10.2 %.

Taste, Nutrition & Health section

Taste, Nutrition & Health achieved natural sales growth of 12.7 % in the first half of 2022. Taking into consideration portfolio and change charge results, the section’s sales amounted to € 1,398 million in the reporting foreign money and thus exceeded earlier 12 months’s determine (H1 2021: € 1,159 million) by 20.6 %. The optimistic internet impact of the acquisitions of Giraffe and Schaffelaarbos and the divestments of the Velcorin and colour companies totaled round € 34 million.

In the Food & Beverage division, elevated leisure actions and rising out-of-home consumption led to good demand for beverage and savory merchandise. It recorded the strongest growth charges in the Latin America, Asia/Pacific and EAME (Europe, Africa, Middle East) areas. The Sweet enterprise in the Latin America area reported excessive double-digit share growth. The Naturals enterprise unit strongly expanded its sales, notably in North America.

The Pet Food division continued its excessive double-digit share growth unabated. All areas contributed to the optimistic sales efficiency with double-digit growth charges. Sales developed notably dynamic in the USA, France, Mexico, China, and Southeast Asia. With the growth of capacities in China, North America, Brazil, and France, Symrise has already laid the basis for additional accelerated growth of the pet meals functions enterprise.

Symrise AG acquired Schaffelaarbos B.V. in January 2022. Schaffelaarbos relies in the Netherlands (Barneveld) and is a number one provider of sustainably sourced proteins from eggs for the feed trade in the EU. With this transaction, Symrise has taken an vital strategic step to additional speed up its worldwide growth in the pet vitamin section. Symrise will mix and complement its present ADF/IsoNova operations in the USA with the trendy Schaffelaarbos services in Barneveld.

EBITDA for the Taste, Nutrition & Health section amounted to € 315 million in the reporting interval (H1 2021: € 258 million) and thus elevated by 22.2 % in comparison with the identical interval of the earlier 12 months. The improve associated to worthwhile sales growth, the acquisitions made and a optimistic one-time impact from the sale of the Velcorin enterprise. At 22.5 %, the EBITDA margin was barely larger than the earlier 12 months’s worth of 22.2 %. The above-mentioned one-time impact offset the rising uncooked materials and working prices. Without the one-time impact, the EBITDA margin would have been 21.2 %.

Scent & Care section

Scent & Care achieved natural growth of 6.3 % in the first half of 2022. Taking into consideration portfolio and change charge results, sales in the first half of 2022 amounted to € 863 million in the reporting foreign money, 15.2 % larger than in the identical interval of the earlier 12 months (H1 2021: € 749 million). The takeover of the Fragrance and Aroma Chemicals enterprise of Sensient and the acquisitions of Groupe Néroli and Romani contributed a complete of round € 26 million to the section’s sales.

The Fragrance division elevated its sales by a single-digit share in the first half of 2022. The Fine Fragrances enterprise unit continued to develop notably dynamically, as soon as once more reaching double-digit share natural growth following a strong earlier 12 months. The latest acquisitions additionally contributed to the growth of the enterprise unit, ensuing in important general double-digit share sales growth. The growth charges had been notably pronounced in the EAME and Latin America areas. In the Consumer Fragrance enterprise unit, demand for hygiene and cleansing merchandise remained decrease than in the earlier 12 months. By distinction, product options for family merchandise developed positively. Sales improvement in the Oral Care enterprise unit turned out subdued. The EAME area did not match the good stage of the earlier 12 months.

The Aroma Molecules division achieved natural sales growth in the excessive single digits. The Menthols enterprise unit recorded notably strong demand and achieved double-digit natural growth in share phrases. Demand for perfume substances recovered in comparison with the earlier 12 months, ensuing in single-digit share growth charges.

Sales in the Cosmetic Ingredients division developed very nicely in the first six months of the present 12 months, with natural growth in the double-digit share vary. All areas posted important will increase in sales, led by EAME (Europe, Africa, Middle East) and Latin America. The enterprise unit for solar safety merchandise continued to develop very dynamic on account of the worldwide improve in journey and the return to elevated leisure actions.

Scent & Care generated an EBITDA of € 171 million in the first half of 2022; the outcome thus exceeded the identical interval of the earlier 12 months (H1 2021: € 162 million) by € 9 million. A one-time impact positively impacted earlier 12 months’s outcome in reference to the acquisition of Sensient’s Fragrance and Aroma Chemicals enterprise (revenue from acquisition under honest worth) in the quantity of € 13 million. The section’s EBITDA margin amounted to 19.8 %, down from the earlier 12 months’s determine of 21.7 % and almost stage with the earlier 12 months’s determine of 19.9 % excluding the particular impact in the earlier 12 months.

Operating outcome and internet revenue

The penalties of the coronavirus pandemic and the conflict in Ukraine have thus far impacted the enterprise improvement of Symrise solely to a minor diploma. The disruption of provide chains and the availability of uncooked supplies have exerted a noticeable influence on the procurement markets and have led to cost will increase for uncooked supplies, some of which at a major stage. The sharp rise in inflation in latest months has led to additional value will increase at Symrise. The firm is countering this improvement by constantly rising costs for its personal prospects.

In the first six months of 2022, the Group generated earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) of € 486 million. Compared to the identical interval of the earlier 12 months, this constitutes a rise of 15.7 %, pushed by each worthwhile sales growth and the portfolio results. At 21.5 %, the EBITDA margin fell 0.5 share factors under the identical interval of the earlier 12 months, primarily because of this of elevated uncooked materials prices and better working prices (EBITDA margin H1 2021: 22.0 %). Earnings earlier than curiosity and taxes (EBIT) elevated by 16.0 %, from € 297 million to € 344 million.

The consolidated internet earnings for the interval attributable to shareholders of Symrise AG for the first six months of 2022 amounted to € 229 million, which was € 33 million larger than the quantity of the earlier 12 months, € 196 million. Earnings per share rose by 13 % to € 1.64, up from € 1.45 in the first half of the earlier 12 months.

The monetary outcome for the first six months of 2022 was € -27 million and was due to this fact € 4 million under the outcome from the identical interval of the earlier 12 months (€ -23 million). The earnings tax expense amounted to € 83 million. This corresponds to a tax charge of 26.2 % (earlier 12 months: 26.2 %).

Forecast raised for the 2022 fiscal 12 months

Also, with the present unstable market setting because of this of the Russia-Ukraine conflict, rising uncooked materials costs and ongoing international provide bottlenecks, Symrise considers itself nicely positioned to proceed on its worthwhile growth path. The firm depends on its strong enterprise mannequin, diversified utility portfolio and broad regional presence and buyer base.

Symrise due to this fact reaffirms its growth and profitability targets and continues to anticipate to develop sooner than the related market. The firm is focusing on natural sales growth of considerably above 7 % in 2022. Profitability will stay at a excessive stage with an EBITDA margin of round 21 %.

Symrise is specializing in natural in addition to inorganic growth, together with the acquisitions of the Canadian firm Giraffe in December 2021, the Dutch firm Schaffelaarbos in January 2022, French firms Groupe Néroli and Romani in April 2022, and the Chinese firm Wing Pet Food in July 2022. Moreover, Symrise will preserve its strict value consciousness and constantly pursue holistic sustainability administration in all areas of the firm.

In the medium time period, the firm goals to extend its sales to € 5.5 to six.0 billion by 2025. Annual growth of 5 to 7 % (CAGR) in addition to focused acquisitions are anticipated to contribute to this. Profitability (EBITDA margin) ought to stay inside a goal hall of 20 to 23 % in the long run.About Symrise:

Symrise is a world provider of fragrances, flavors, meals, vitamin and beauty substances. Its purchasers embrace producers of perfumes, cosmetics, meals and drinks, prescription drugs and producers of dietary dietary supplements and pet meals. Its sales of € 3.8 billion in the 2021 fiscal 12 months make Symrise a number one international supplier. Headquartered in Holzminden, Germany, the Group is represented by greater than 100 places in Europe, Africa, the Middle East, Asia, the United States and Latin America. Symrise works with its purchasers to develop new concepts and market-ready ideas for merchandise that type an integral half of on a regular basis life. Economic success and company duty are inextricably linked as half of this course of. Symrise – all the time inspiring extra …

www.symrise.com

 

 

02.08.2022 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.The issuer is solely liable for the content material of this announcement.The DGAP Distribution Services embrace Regulatory Announcements, Financial/Corporate News and Press Releases.Archive at www.dgap.de

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