13.11.2014
Symrise AG DE000SYM9999
DGAP-News: Symrise AG Continues on Profitable Growth Track
DGAP-News: Symrise AG / Key word(s): 9-month figures
Symrise AG Continues on Profitable Growth Track
13.11.2014 / 07:00
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- Group sales increase by 13 % at local currency to EUR 1,530 million
- First time consolidation of Diana Group in third quarter
- EBITDAN rises 18 % to EUR 343.8 million
- EBITDAN margin increases to 22.5 %
- Integration of Diana Group proceeding as planned
- Outlook confirmed
November 13, 2014 Symrise AG considerably increased its sales and earnings
in the first nine months of 2014. The Group benefited from high demand in
both segments and all regions. For the first time and as of July, the
consolidated financial statements also include the results of Diana Group,
which was acquired in spring. Symrise thus increased its Group sales by 13
% at local currency to EUR 1,530.0 million in the reporting period (9M
2013: EUR 1,401.2 million). Earnings before interest, taxes, depreciation
and amortization as normalized for one-time effects from the acquisition
and integration of Diana (EBITDAN) increased by 18 % to EUR 343.8 million
(9M 2013: EUR 290.2 million). The EBITDAN margin rose to 22.5 % (9M 2013:
20.7 %).
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said:
"Symrise is very well on track and in great shape. In the first nine months
of the year, we successfully used market opportunities, systematically
pursued our strategy and further expanded our market position. The Diana
Group has been part of Symrise since July and we are successfully combining
our activities. This will allow us to offer a much broader portfolio in the
future and to make ourselves stand out in the market even more. We
therefore consider Symrise in a good position for the remaining weeks of
this year and also the future."
Sales Growth in all Regions
Symrise increased its sales by 9 % in the reporting currency to EUR 1,530.0
million in the first nine months of the year (9M 2013: EUR 1,401.2
million). At local currency, this amounts to 13 % growth. All of the
regions and both segments contributed to the Group-wide increase in sales,
as did the acquisition of the Diana Group.
Latin America was the most rapidly expanding region with a sales increase
of 20 % at local currency, followed by EAME with a 14 % sales increase at
local currency. Symrise grew sales in North America by 13 % at local
currency. The Asia / Pacific region increased its sales by 7 % at local
currency.
High Profitability with an EBITDAN Margin of 22.5 %
The focus placed on high-margin business, unwaveringly high capacity
utilization and continued cost discipline significantly contributed to the
Group's increased profitability. One-time effects in the amount of EUR 12.9
million were incurred in relation to the acquisition and integration of the
Diana Group. These were allocated to the Flavor & Nutrition segment.
Earnings before interest, taxes, depreciation and amortization as
normalized for specific effects (EBITDAN) increased by 18 % to EUR 343.8
million in the first nine months of the year (9M 2013: EUR 290.2 million).
At local currency, this equates to an increase of 22 %. The normalized
EBITDA margin increased by 1.8 percentage points to 22.5 % (9M 2013: 20.7
%).
The financial result includes acquisition-related one-time expenses
amounting to EUR 7.8 million. In addition, write-downs on intangible assets
from the Diana transaction had not yet been taken into account in the third
quarter, as their revaluation (purchase price allocation) had not yet been
completed. The net income for the period as normalized for these specific
effects increased by 26 % to EUR 175.9 million in the reporting period (9M
2013: EUR 139.9 million); the normalized earnings per share increased
accordingly, from EUR 1.18 to EUR 1.42.
Significant Increase of 24 % in Cash Flow from Operating Activities
Cash flow from operating activities rose by 24 % to EUR 218.7 million (9M
2013: EUR 176.2 million). This sharp increase can be attributed to the
higher net income for the period and a below-average rise in working
capital. The ratio of net debt to EBITDAN amounted to 2.4 (December 31,
2013: 1.1). Taking pension liabilities into account, the ratio amounted to
3.2 (December 31, 2013: 2.0). With an equity ratio of 38 % Symrise
continues to operate on the basis of a strong balance sheet.
Sales in Emerging Markets grow by 12 %
Symrise continued to benefit from high demand in Emerging Markets. Sales in
those markets grew by 12 % in local currency compared to the prior-year
period. The share of sales from Emerging Markets amounted to 47 % (48 % in
local currency) of Group sales.
Scent & Care Segment
Sales in the Scent & Care segment amounted to EUR 736.8 million and were
thus at the same level as the previous year's figure (9M 2013: EUR 736.3
million). The previous year's high figure, was characterized by
double-digit growth and was gratifyingly equalled. The segment also further
concentrated on high-margin business. In local currency, sales rose by 4%;
strongest growth came from the Life Essentials division.
Scent & Care grew its EBITDA by 11 % to EUR 167.6 million (9M 2013: EUR
151.2 million). The EBITDA margin increased by 2.2 percentage points to
22.7 % (9M 2013: 20.5 %).
Flavor & Nutrition Segment
Flavor & Nutrition increased sales by 19 % to EUR 793.2 million (9M 2013:
EUR 664.9 million). At local currency, this corresponds to growth of around
24 %. For the period, July to September Diana contributed EUR 115 million
to sales and achieved a sales increase of 9 % year on year. Without the
effects of this acquisition, Flavor & Nutrition grew sales by 6 % at local
currency.
The segment's EBITDA normalized for one-time effects rose to EUR 176.1
million in the reporting period (9M 2013: EUR 139.0 million). The
normalized EBITDA margin increased to 22.2 % (9M 2013: 20.9 %).
Positive Outlook for the Fourth Quarter
Symrise expects to see good momentum in both of its business segments in
the remaining weeks of 2014. Although political conflicts will continue in
some countries the Group expects robust demand in all regions. Accordingly,
Symrise is confirming its goal of growing faster than the global market for
fragrances and flavors in 2014 also and of achieving an EBITDA margin of
more than 20 %. The objectives defined for the 2020 fiscal year also apply
to the Group as expanded by the addition of the Diana Group and continue to
be valid: Symrise aims at a compound annual growth rate (CAGR) of between 5
and 7 % and an EBITDA margin in the range of between 19 to 22 %.
9M
2014
norm- Change
in 9M 9M aliz- Change in %
EUR million 2013 2014 ed1 in % at lc
1,401.2 1,530.0 1,530.0 9 13
Sales
EBITDA 290.2 330.9 343.8 18 22
EBITDA margin in % 20.7 21.6 22.5
EBIT 223.8 258.2 271.1 21 25
EBIT margin in % 16.0 16.9 17.7
Net income for the
period 139.9 160.8 175.9 26
in
Earnings per share EUR 1.18 1.30 1.42 20
CAPEX/M&A 114.2 55.6 55.6 -51
Cash flow from
operating
activities 176.2 218.7 218.7 24
Scent & Care
Sales 736.3 736.8 0 4
EBITDA 151.2 167.6
EBITDA margin in % 20.5 22.7
Flavor & Nutrition
Sales 664.9 793.2 793.2 19 24
EBITDA 139.0 163.3 176.1
EBITDA margin in % 20.9 20.6 22.2
lc=local currency
December September
31, 2013 30, 2014
EUR
Balance sheet total million 2,210.4 3,803.8
Equity ratio in % 43.0 37.9
Net debt (incl. pension provisions and
similar obligations) / EBITDA(N)2 ratio 2.0 3.2
Employees FTE 3 5,959 8,154
1 adjusted for transaction and integration costs as well as one-off
valuation effects related to business combinations
2 annualized EBITDAN incl. Diana proforma figures
3 not including apprentices and trainees; FTE = Full Time Equivalent
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.
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 40 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: Investor Contact:
Bernhard Kott Tobias Erfurth
Phone +49 (0)5531 90-1721 Phone +49 (0)5531 90-1879
[email protected] [email protected]
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13.11.2014 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.
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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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296829 13.11.2014
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