14.03.2017
Symrise AG DE000SYM9999
DGAP-News: Symrise reports strong sales and earnings growth in 2016
DGAP-News: Symrise AG / Key word(s): Final Results/Development of Sales
Symrise reports strong sales and earnings growth in 2016 (news with
additional features)
14.03.2017 / 07:00
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Financial Report 2016
* Group sales up 12 % to EUR 2,903.2 million
* EBITDAN increase of 9 % to EUR 625.2 million
* EBITDAN margin with 21.5 % again at high level
* Normalized net income for fiscal year up 8 % to EUR 265.9 million
* Dividend increase to EUR 0.85 per share proposed
Symrise AG exceeded its targets for the fiscal year 2016. The Company
benefited from strong demand across all segments and regions, increasing its
sales by 12 % (local currency: 16 %) to EUR 2,903.2 million (2015: EUR
2,601.7 million). Normalized earnings before interest, taxes, depreciation
and amortization (EBITDAN) grew by 9 % to EUR 625.2 million (2015: EUR 572.2
million). Despite investments to capacity expansions and portfolio
diversification Symrise operated highly profitable, with an EBITDAN margin
of 21.5 % (2015: 22.0 %).
"In the fiscal year 2016, Symrise continued with its highly dynamic and
profitable growth course while making targeted investments to expand its
portfolio, competencies and capacity. Furthermore, we expanded our business
segments to give them more flexibility. With our advanced and unique
structure, we are able to best possibly address future customer needs and
identify market opportunities early on. This foresight has been a defining
feature of our approach for more than a decade and gives us a clear
competitive edge. We want our shareholders to participate in this success.
At the Annual General Meeting, the Executive Board and Supervisory Board
will propose a dividend of EUR 0.85 per share for the fiscal year 2016,"
said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. "For 2017, we remain
optimistic despite political changes and tensions in some countries. We have
a presence in more than 40 countries, a widely diversified portfolio, and
highly engaged employees. We aim at continuing our highly profitable growth
course and remain one of the leading companies in our industry."
Strong sales growth again
Symrise benefited from robust demand across all regions and segments in
2016. Sales increased by 12 % year-on-year in reporting currency to EUR
2,903.2 million (2015: EUR 2,601.7 million). In local currencies, the
increase amounted to 16 %. Excluding portfolio effects from acquisitions in
the areas of fragrances and nutrition and from the divestment of Pinova's
industrial activities, organic sales growth in local currency amounted to 8
%. As a result, Symrise posted substantially stronger growth than the
relevant market for flavors and fragrances, which grew around 3 % for 2016
according to market estimates.
Double-digit growth in Emerging Markets
As part of its proven corporate strategy, Symrise continued to expand its
presence in Emerging Markets and intensified cooperative activities with
strategic customers in those markets. This led to a 15 % increase in the
Group's Emerging Market sales, which accounted for 43 % of total sales
(2015: 46 %). Compared to the prior year, the sales share of those markets
has been a bit lower as the companies acquired in 2016 have a stronger
market presence in the Mature Markets.
Robust profitability with EBITDAN margin of 21.5 %
Symrise raised its EBITDAN by 9 % to EUR 652.2 million (2015: EUR 572.2
million). Despite investments in portfolio diversification, the
profitability is at a very good level: The EBITDAN margin of 21.5 % (2015:
22.0 %) exceeded the targeted level of more than 20 %.
The normalized net income grew to EUR 265.9 million (2015: EUR 246.8
million) which represents an increase of 8 %. Earnings per share on a
normalized basis grew by 8 % from EUR 1.90 to EUR 2.05. The reported
earnings per share amounted to EUR 1.95. At the Annual General Meeting on 17
May 2017, the Executive Board and Supervisory Board will propose a dividend
increase to EUR 0.85 per share (2015: EUR 0.80) for the fiscal year 2016.
Operating cash flow reflects strategic build-up of inventories
The cash flow from operating activities amounted to EUR 338.8 million. The
decrease of EUR 36.4 million (EUR 375.2 million) compared to 2015 is mainly
due to an increase of inventories as well as higher prices of certain
natural raw materials.
As of 31 December 2016, the ratio of net debt, including pension provisions,
to EBITDAN stood at 3.1 (31 December 2015: 2.8). With an equity ratio of
36.4 % at 31 December 2016 (31 December 2015: 38.0 %), Symrise has a solid
basis for its future development of the business.
Segment expansion following dynamic business development
In 2016, Symrise expanded its organizational structure to grant the
individual segments greater flexibility in developing their business
activities. Along with this, a three-segment structure was established and
two new members were appointed to the Executive Board.
The activities of the former Flavor & Nutrition segment are now carried out
by two separate segments. The Flavor segment includes applications for
beverages, savory products, and sweets. The Nutrition segment comprises the
Diana division with the application areas of food, pet food, Aqua and Probi.
Scent & Care continues to combine the areas of fragrances, cosmetic
ingredients and aroma molecules. Fragrances, with its application fields of
fine fragrances, personal care, oral care and home care, was reorganized
into global units in 2016.
Scent & Care segment
Sales in Scent & Care increased from EUR 1,073.7 million to EUR 1,311.3
million. This represents a plus of 25 % in local currency. At reporting
currency, sales grew by 22 %. Excluding the effects from Pinova, sales were
up 5 % in local currency.
All of the business segments contributed to this growth. The strongest gains
were posted by the Aroma Molecules division. Furthermore, the segment
benefited from strong demand for menthol and fragrances. The products of the
Pinova Group, which was acquired in 2016, also generated additional sales.
The Pinova industrial division, which manufactures products such as
adhesives and paints and is therefore not part of Symrise's core business,
was sold off in the fourth quarter of 2016.
Scent & Care increased the normalized EBITDA by 12 % to EUR 257.8 million
(2015: EUR 231.2 million). The normalized EBITDA margin was 19.7 % (2015:
21.5 %). The temporary decline resulted from the fragrance business of the
Pinova Group, whose profitability does not match entirely the level of the
Symrise Group yet.
Flavor segment
Sales in the Flavor segment increased by 4 % to EUR 1,016 million. In local
currency, sales grew by 10 %. At EUR 234 million, EBITDA for the reporting
period was significantly higher than in the previous year (2015: EUR 219
million). The EBITDA margin improved significantly to a very good level of
23.0 % (2015: 22.3 %).
All regions achieved substantial growth. The segment benefited in particular
from strong gains in the application areas of sweets and beverages.
Nutrition segment
Nutrition posted a 5 % plus in sales to EUR 576 million. At local currency,
sales grew by 9 %. Excluding portfolio effects, the segment achieved a 10 %
organic increase in sales in local currency. In the Diana division, the
biggest contributions came from pet food applications, where sales increased
substantially in all regions.
Symrise also added new competencies in the Nutrition segment through
acquisitions in 2016. In January the Diana division acquired a majority
stake in the Dutch company Scelta Umami Holding BV. The Group specialized in
the manufacturing and distribution of mushroom concentrates. In May, Diana
also acquired Nutra Canada, whose products include in particular fruit and
plant extracts with supplementary functional benefits. The business unit
Probi acquired Nutraceutix, an important supplier and manufacturer of
probiotics in North America.
During the reporting period, the Nutrition segment increased its EBITDA to
EUR 134 million (2015:
EUR 122 million). The EBITDA margin reached an outstanding 23.2 % (2015:
22.3 %).
Symrise looks ahead to 2017 with confidence
The economic environment in the current fiscal year is expected to be more
challenging than in the previous year. It appears likely that the
geopolitical tensions between certain states will persist, and some
countries will continue to struggle with debt. With its global presence,
however, Symrise believes that it is well positioned to balance out the
regional differences. Symrise also expects to overcome the volatility of
various raw material prices to a very large extent through its broad access,
in particular to natural ingredients, and through its backward integration
in key raw materials.
Consequently, Symrise is optimistic to continue its sustainable profitable
growth in 2017. Symrise again aims to substantially outperform the relevant
market, where growth of around 3 % is forecasted. Moreover, the Company
intends to remain highly profitable with an EBITDA margin of around 20 %.
Symrise remains fully committed to the mid-term objectives extending to the
end of 2020, namely a compound annual growth rate (CAGR) in the range of 5
to 7 % and an EBITDA margin of between 19 and 22 %.
About Symrise:
Symrise is a global supplier of fragrances, flavorings, cosmetic base
materials and substances as well as functional ingredients. Its clients
include manufacturers of perfumes, cosmetics, food and beverages, the
pharmaceutical industry and producers of nutritional supplements and pet
food.
With sales of more than EUR 2.9 billion in 2016, Symrise is among the global
leaders in the market for flavors and fragrances. Headquartered in
Holzminden, Germany, the Group is represented in over 40 countries in
Europe, Africa and 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 - always inspiring more...
www.symrise.com
Media contact: Investor contact:
Bernhard Kott Tobias Erfurth
Tel.: +49 (0)5531 90-1721 Tel.: +49 (0)5531 90-1879
Email: Email:
[1][email protected] 1. [1][email protected] 1.
mailto:[email protected] mailto:[email protected]
Social media:
twitter.com/symriseag linkedin.com/company/symrise
youtube.com/agsymrise xing.com/companies/symrise
You will find the table containing the key financial figures at the end of
this corporate news.
---------------------------------------------------------------------------
Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=BWKKHCVOQM
Document title: Symrise AG Factsheet FY 2016 EN
---------------------------------------------------------------------------
14.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Symrise AG
Mühlenfeldstraße 1
37603 Holzminden
Germany
Phone: +49 (0)5531 90 0
E-mail: [email protected]
Internet: www.symrise.com
ISIN: DE000SYM9999
WKN: SYM999
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
---------------------------------------------------------------------------
553671 14.03.2017
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Symrise AG ISIN: DE000SYM9999 können Sie bei EQS abrufen
Chemie , SYM999 , SY1 , XETR:SY1