02.11.2016
Symrise AG DE000SYM9999
DGAP-News: Symrise optimistic for full year 2016 (news with additional features)
DGAP-News: Symrise AG / Key word(s): Quarterly / Interim
Statement/Development of Sales
Symrise optimistic for full year 2016 (news with additional features)
02.11.2016 / 07:00
The issuer is solely responsible for the content of this announcement.
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- Sales in first nine months of the year up 16 % (in local currency) to EUR
2,192 million
- EBITDAN increase by 7 % to EUR 480 million
- High profitability with EBITDAN margin of 21.9 %
- Sale of industrial activities to French specialist provider DRT in the
course of portfolio optimization
Symrise AG continued to benefit from strong demand and high capacity
utilization in the third quarter. This enabled the Group to seamlessly
continue the dynamic growth trend from the first half of the year. In the
nine-month period, Symrise achieved strong gains in sales and earnings. The
Group increased sales by 16 % (in local currency) to EUR 2,192.3 million
(9M 2015: EUR 1,977.0 million). Earnings before interest, taxes,
depreciation and amortization, normalized for one-time effects from the
acquisition and integration of Pinova Holdings (EBITDAN) were up 7 % to EUR
480.3 million (9M 2015: EUR 448.5 million). Despite the first-time
inclusion of the Pinova Group since the first quarter of 2016, Symrise has
maintained profitability at a very good level and achieved an EBITDAN
margin of 21.9 % (9M 2015: 22.7 %). The Group is optimistic as it looks
ahead to the remaining weeks of 2016.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: "After the dynamic
expansion of our business and the strong, profitable growth in the first
nine months, we are anticipating the final spurt in 2016 with optimism. We
will use the remaining weeks to push ahead with our innovations, maintain
our market presence and align our products with our customers' needs. We
confirm our aspiration for 2016 to grow faster than the market, to operate
our business in a highly profitable way and thus to remain among the
industry leaders."
Strong sales growth
In the first nine months of the year, Symrise increased its sales by 11 %
to EUR 2,192.3 million (9M 2015: EUR 1,977.0 million). In local currency,
the increase amounted even to 16 %. Both segments had a substantial impact
on this strong performance. Purchased activities also contributed to sales,
including those of the Pinova Holdings and those of Scelta Umami and Nutra
Canada. Even without these additional contributions, the Group achieved
significant organic sales growth of 8 % in local currency.
At regional level, Symrise experienced the strongest growth in Latin
America, where sales were up 34 % in local currency. The second-strongest
region was North America, at 27 %. Asia-Pacific saw a 12 % increase in
sales, followed by EAME with an increase of 7 %. Symrise also recorded
strong growth in the Emerging Markets, where sales were 17 % higher in
local currency, accounting for 43 % of the Group's total sales.
EBITDAN with 21.9 % at high level
EBITDA normalized for the acquisition and integration of Pinova Group was
up 7 % (13 % local currency) to EUR 480.3 million (9M 2015: EUR 448.5
million). The normalized EBITDA margin was at 21.9 % (9M 2015: 22.7 %). The
net income for the period, adjusted for one-time effects, increased to EUR
206.2 million (9M 2015: EUR 199.3 million). Normalized earnings per share
rose to EUR 1.59 after EUR 1.54 in the prior-year period.
Continuously solid financial position
Cash flow from operating activities amounted to EUR 218.4 million (9M 2015:
EUR 252.3 million); the decrease mainly resulted from build-up of strategic
inventories. The ratio of net debt (including pension provisions and
similar obligations) to EBITDAN stood at 3.5 (31 December 2015: 2.8). The
Group is still committed to reducing this ratio to a range between 3.2 and
3.5 by the end of 2016. With an equity ratio of 32.9 % (31 December 2015:
38.0 %), Symrise continues to maintain a solid balance sheet.
Scent & Care sets the course for the future
Scent & Care, which comprises the fragrance and cosmetic ingredients
activities, increased its sales, including contributions from the
acquisition of Pinova Group, by 23 % (27 % in local currency) to EUR 997.2
million (9M 2015: EUR 812.3 million). The segment posted strong gains even
without the Pinova effects, with an organic sales increase by 7 % at local
currency. Scent & Care reported particularly dynamic demand with cosmetic
active ingredients and fragrances.
At operational level, Symrise used the third quarter to realign the
Fragrances division. In future, rather than being organized by regions, the
business with fragrance compositions will be organized globally by area of
application, namely Fine Fragrances, Personal Care, Home Care and Oral
Care. Moreover, the division is going to consolidate its capacities.
Therefore, the US-American mixed operation in Chester, NY, will be closed
by the end of the year and a production network at the location in
Branchburg, NJ, will be created.
EBITDAN increased to EUR 203.6 million (9M 2015: EUR 184.9 million). The
EBITDAN margin was 20.4 % (9M 2015: 22.8 %) and was also at a healthy level
following the integration of the Pinova activities.
Flavor & Nutrition - profitability at new record level
Flavor & Nutrition achieved a sales growth of 3 %, and was up 9 % in local
currency. The segment benefited particularly from good capacity utilization
and strong demand for sweets and culinary applications. Business in the
area of pet food also continued to grow. Excluding the purchased activities
of Dutch Scelta Umami and Nutra Canada, and adjusted for the sale of the
CAP pork specialties last year, the segment also posted strong organic
growth with an increase of 10 % in local currency.
EBITDA in the segment increased to EUR 276.7 million after EUR 263.6
million in the prior-year period. The EBITDA margin reached a new all-time
high of 23.2 % (9M 2015: 22.8 %).
Sale of the industrial activities to French manufacturer DRT
In the course of the ongoing optimization of its portfolio, Symrise has
decided to sell the industrial activities of the Pinova Holdings. Symrise
will continue to operate the holding's former Renessenz entity, which was
acquired with the takeover. In the past months, these activities have been
fully integrated into the Aroma Molecules division, securing access to
strategically important natural ingredients. As a result, Symrise will
offer a broader fragrance portfolio for perfume manufacturing going
forward, expanding its market leadership in this area.
The unit, which operates under the brand name Pinova, with product
solutions for technical applications in adhesives, paint, coatings as well
as the tire and construction industries, will be acquired by DRT. The
purchase price was set to US$ 150.0 million. Estimated sales for 2016
amount to US$ 111.0 million. The transaction is due to close at the end of
2016. The industrial applications have only limited points of reference
with Symrise's core business. However, Symrise has secured continued access
to specific raw materials from renewable sources. DRT and Symrise will
cooperate closely in the future under a joint supply agreement.
The synergies associated with the acquisition of Pinova Group will now be
realized without the corresponding contributions of the industrial
applications. The integration of the former Renessenz activities is
expected to yield synergies of about EUR 15.0 million. Following the sale
of the industrial applications, these can now be realized one year sooner,
by the end of the fiscal year 2019.
Optimistic final spurt in 2016
Symrise is anticipating the fourth quarter of 2016 with optimism and
expects good dynamics in both segments for the remaining weeks of the year.
Some countries will still be impacted by economic instability and political
tensions. However, Symrise expects to be able to counter these effects
through its broad diversification and regional presence. The Group
therefore remains committed to its 2016 objective of growing faster than
the global flavors and fragrances market, which is estimated to grow by
about 3 % this year. Symrise also confirms its target of an EBITDA margin
of above 20 %.
The Group is furthermore fully committed to its medium-term targets for the
fiscal year 2020: A compound annual growth rate (CAGR) of 5-7 % and an
EBITDA margin of 19-22 %.
About Symrise:
Symrise is a global supplier of fragrances, flavors, 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 and
pet food.
With sales of more than EUR 2.6 billion in 2015, 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 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.
www.symrise.com
Media contact: Investor contact:
Bernhard Kott Tobias Erfurth
Phone: +49 (0)5531 90-1721 Phone: +49 (0)5531 90-1879
E-mail: [email protected] E-mail: [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.
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=TRTBWXUQSC
Document title: Symrise Reporting Fact Sheet 9M 2016
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02.11.2016 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
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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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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516429 02.11.2016
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