06.05.2014
Symrise AG DE000SYM9999
DGAP-News: Symrise AG: Symrise Records Strong First Quarter
DGAP-News: Symrise AG / Key word(s): Interim Report
Symrise AG: Symrise Records Strong First Quarter
06.05.2014 / 07:02
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- Group sales up by 8 % at local currency
- Increase in sales by 12 % in Emerging Markets
- EBITDA up 9 % to EUR 101 million - EBITDA margin of 21.5 %
- Earnings per share rise over proportionally by 13 % to EUR 0.44
- Further expansion of market position through planned acquisition of
Diana
Symrise AG had a successful start into the fiscal year 2014. The Group
benefited from persistent high demand in both divisions and increased sales
to EUR 470 million in the first quarter (Q1 2013: EUR 458 million).
Adjusted for currency translation effects, sales recorded an increase by 8
%. At the same time, Symrise boosted its earnings before interest, taxes,
depreciation and amortization (EBITDA) by 9 % to EUR 101 million (Q1 2013:
EUR 93 million) and achieved an EBITDA margin of 21.5 % compared to 20.3 %
in the same quarter of the previous year. Net income for the period
increased significantly by 13 % to about EUR 52 million. In April, Symrise
moreover announced the planned acquisition of the French Diana Group. With
this transaction, which is scheduled to be completed in the third quarter,
the Company is reaching an important milestone in the implementation of its
growth strategy.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: "In the first quarter,
Symrise seamlessly continued its strong performance from the preceding
fiscal year. Demand from our customers remained at a high level. With the
solid utilization of our capacities and an advantageous product mix, we
achieved an excellent EBITDA margin. We also pursued our growth strategy at
full speed and are taking a large step forward with the recently announced
acquisition of the Diana Group. Within this context, we are expanding our
market position, supplementing our portfolio of natural ingredients and are
entering the highly profitable Pet Food market. We will also substantially
expand our backward integration and secure our long-term access to
important agricultural raw materials."
Sales Increase by 8 % at Local Currency
In the first quarter, Symrise increased sales in the reporting currency by
2.6 % to EUR 469.6 million. At local currency, sales rose by 7.9 %. In
addition to good capacity utilization in both divisions, the Group
benefited from considerable growth in the Emerging Markets.
The highest growth was achieved in the Latin America region where Symrise
noted a sales increase of 15 % at local currency. EAME and North America
both recorded sales growth of 7 % while the Asia/Pacific region grew sales
by 6 % at local currency.
EBITDA Margin Increase to 21.5 %
The positive sales performance made a notable contribution to improving the
result of operations. Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased by 9 % during the reporting period to EUR
101 million (Q1 2013: EUR 93 million). The EBITDA margin rose to 21.5 % (Q1
2013: 20.3 %). Net income for the period amounted to EUR 52 million
compared to EUR 46 million in Q1 2013. Earnings per share grew over
proportionately by 13 % from EUR 0.39 to EUR 0.44.
Cash Flow from Operating Activities Climbs to EUR 49.4 Million
Cash flow from operating activities significantly grew and increased to EUR
49.4 million (Q1 2013: EUR 26.4 million); it particularly reflects the
strong earnings performance and low inventories from the first quarter. The
ratio of net debt incl. provisions for pensions to EBITDA amounted to 2.0
(Q1 2013: 2.0).
Sales in Emerging Markets Up By 12 %
Symrise again benefited from its strong presence in the Emerging Markets
during the first quarter. Sales in these regions were up by 12 % at local
currency. The share of Group sales attributed to the Emerging Markets
amounted to 48 % and was on the same level as the prior year.
Scent & Care Division
Symrise grew sales in the Scent & Care division to EUR 255 million after
EUR 245 million in the previous year. In local currency, this corresponds
to an increase of 9 %.
Particularly strong impulses came from the business units Fragrances and
Life Essentials, which both realized double-digit growth rates. Due to the
strong demand in menthol, the business unit Aroma Molecules continued to
build on its strong currency adjusted sales level from the first quarter of
2013.
Considerable sales growth for Scent & Care was recorded in the regions of
Latin America (+13 % at local currency) and Asia/Pacific (+8 % at local
currency). In both, North America and EAME, the division increased sales by
9 % at local currency.
Scent & Care notably drove its EBITDA to EUR 58 million (Q1 2013: EUR 49
million). The EBITDA margin rose from 20.0 % in the previous year's first
quarter to 22.7 % in the reporting period.
Flavor & Nutrition Division
Flavor & Nutrition generated sales of EUR 215 million in the first quarter
of 2014 (Q1 2013: EUR 213 million). This corresponds to an increase of 6 %
at local currency. Similar to Scent & Care, the Emerging Markets, Latin
America in particular, made a significant contribution to this result.
Latin America posted the division's strongest growth with a sales increase
of 18 % at local currency, benefiting especially from global and regional
customers in the application areas Savory and Sweet. The second strongest
region was EAME, which recorded a sales increase of 6 % at local currency.
Sales were developed particularly strong in the markets of Egypt, Russia,
Nigeria and South Africa. North America achieved sales growth of 5 % at
local currency in the first quarter. The Asia/Pacific region, particularly
the markets of Indonesia, India, Malaysia and Thailand, delivered good
growth; sales in the region grew by 4 % at local currency.
EBITDA in the Flavor & Nutrition division was at EUR 43 million (Q1 2013:
EUR 44 million), this is slightly lower than in the same period of the
previous year. The EBITDA margin amounted to 20.0 % (Q1 2013: 20.6 %).
Expanding Market Position with Planned Acquisition of Diana Group
On April 12, 2014, Symrise announced the planned acquisition of the French
Diana Group, the number one in the worldwide market for pet food and a
leading provider of natural flavors. With the planned acquisition, Symrise
will substantially expand its market position in the Flavor & Nutrition
division, intensify the backward integration for agricultural raw materials
and expand into the highly attractive pet food segment. The acquisition,
valued at EUR 1.3 billion (enterprise value), will have a full positive
effect on earnings starting in 2015. In the fiscal year 2013, Diana
generated sales of about EUR 424 million and an EBITDA margin of roughly 21
%. According to French law, the transaction requires consultation with
Diana's employee representatives as well as approval from antitrust
authorities. The acquisition is scheduled to be finalized in the third
quarter of 2014.
Positive Outlook for 2014
After an excellent first quarter, Symrise is confirming its outlook for the
fiscal year 2014. The Group expects to see further on solid demand and
positive market developments in all regions and both divisions.
Accordingly, Symrise is confirming its target to also outperform the global
market for Fragrances and Flavors in 2014. Symrise furthermore aims at an
EBITDA margin of more than 20 %. The targets defined for the 2020 fiscal
year continue to apply to the expanded Symrise AG, including the addition
of the Diana Group: Symrise aims at an annual sales growth (CAGR) of
between 5 and 7 % and an EBITDA margin between 19 and 22 %.
Key Figures of the Group
Change in %
Q1 Q1 Change at local
EUR million 2013 2014 in % currency
Sales 457.6 469.6 2.6 7.9
EBITDA 92.8 101.0 9 12
EBITDA margin in % 20.3 21.5
EBIT 71.6 79.6 11 15
EBIT margin in % 15.6 16.9
Net income 46.0 51.9 13
Earnings per share in EUR 0.39 0.44 13
Investments/
Acquisitions 83.1 12.3 -85
Operating cash flow 26.4 49.4 87
Scent & Care
Sales 245.0 254.6 3.9 9.3
EBITDA 48.9 57.9
EBITDA margin in % 20.0 22.7
Flavor & Nutrition
Sales 212.6 215.0 1.2 6.2
EBITDA 43.9 43.0
EBITDA margin in % 20.6 20.0
December March
31, 2013 31, 2014
Balance sheet total EUR million 2,210.4 2,251.3
Equity ratio in % 43.0 43.7
Net debt (incl. pension provisions
and similar obligations)/EBITDA ratio 2.0 2.0
Employees FTE[1] 5,959 5,993
[1] 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 more than EUR 1.8 billion in 2013 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. In 2013, Symrise was certified as a "Green
Company" by DQS.
Symrise - always inspiring more.
Media contact:
Bernhard Kott
Tel. +49 (0)5531 90-1721
[email protected]
Investor contact:
Tobias Erfurth
Tel. +49 (0)5531 90-1879
[email protected]
End of Corporate News
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06.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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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: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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