08.05.2018
Symrise AG DE000SYM9999
DGAP-News: Symrise achieves strong organic growth of 7.5 % in the first quarter
DGAP-News: Symrise AG / Key word(s): Quarterly / Interim Statement
Symrise achieves strong organic growth of 7.5 % in the first quarter (news
with additional features)
08.05.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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* Group sales up by 1.5 % to EUR 776.9 million, including portfolio and
exchange rate effects
* EBITDA margin with 20.1 % within target corridor
* Shortage of some raw materials without impact on delivery capability
* Guidance for 2018 and medium-term targets through to 2020 affirmed
Symrise AG remains on track for strong growth in the fiscal year 2018 and
achieved a very healthy 7.5 % organic increase in sales in the first
quarter. All segments benefited from good demand. Taking into account
portfolio and exchange rate effects, sales in the first quarter were up 1.5
% to EUR 776.9 million (Q1 2017: EUR 765.2 million). Earnings before
interest, taxes, depreciation and amortization (EBITDA) amounted to EUR
155.8 million. Due to negative currency effects and higher raw material
costs, the EBITDA came in lower than in the prior-year period (Q1 2017: EUR
165.5 million). The EBITDA margin reached 20.1 % and was within the
medium-term target corridor of 19-22 %.
"We are off to a dynamic start in the fiscal year 2018 and consider
ourselves very well positioned with our strong market presence. Despite
extensive investments, volatile exchange rates and higher raw material
prices, we operated very profitable," said Dr. Heinz-Jürgen Bertram, CEO of
Symrise AG. "The targeted expansion of our product portfolio and our raw
material base has paid off. Along with strong demand from our customers,
this was the foundation of our success in the first quarter. All segments
generated substantial new business and contributed to the growth of our
Group. We are looking ahead with confidence at our business development for
the coming months. We will remain focused on profitable growth, especially
through the further expansion of our capacities."
Strong organic sales growth
The Symrise Group achieved strong organic sales growth of 7.5 % in the first
quarter. All segments experienced healthy demand. Considering portfolio
effects - such as the sales contributions of the recently acquired companies
Cobell and Citratus - and exchange rate effects, Symrise increased its sales
by 1.5 % to EUR 776.9 million (Q1 2017: EUR 765.2 million). The sales trend
in reporting currency was negatively impacted by unfavorable exchange rates,
in particular by the appreciation of the euro against the US dollar.
Profitability within target corridor
First-quarter earnings were impacted by negative currency effects and higher
raw material costs. Earnings before interest, taxes, depreciation and
amortization (EBITDA), at EUR 155.8 million, were EUR 9.7 million lower than
in the same quarter a year earlier (Q1 2017: EUR 165.5 million). It is
important to consider that the Q1 2017 figure includes a one-off gain of EUR
4.7 million resulting from the sale of the Pinova industrial activities.
The situation in the raw material markets, especially the supply of
important fragrance ingredients, remained challenging in the first quarter.
The failure to deliver raw materials of some suppliers and a generally
higher price level led to cost increases. The Scent & Care segment again
benefited from its comprehensive backward integration, retaining full
delivery capability due to Symrise's wide-ranging raw material base. To
compensate for the higher raw material costs, Symrise engages in a close
dialog with its customers to actively implement price increases.
The Group's EBITDA margin reached 20.1 % (Q1 2017: 21.6 %) and was, despite
the cost increases that were mainly attributable to external factors, on the
expected level of about 20 % for 2018. It was also within the target
corridor for both, the current year as well as the medium-term targets for
2020.
Scent & Care with good sales growth in particular for Fragrances and
Cosmetic Ingredients
Scent & Care posted a 6.9 % organic sales increase in the first quarter.
Considering the negative currency effects and the portfolio effect from the
Citratus acquisition, sales in reporting currency amounted to EUR 331.8
million, and thus were slightly lower than year-on-year.
The Aroma Molecules division delivered the strongest growth, with organic
double-digit percentage increases, in particular in applications for
fragrance ingredients.
The Cosmetic Ingredients division achieved strong organic growth in the high
single-digit percentage range, showing particularly expansive developments
in the Asia/Pacific and Latin America regions.
The Fragrance division reported a moderate organic increase in sales,
especially driven by the Beauty Care and Home Care business units. Beauty
Care, which develops and markets body and facial care applications, realized
strong organic growth especially in the Asia/Pacific and Latin America
regions. In the Home Care business unit, healthy increases were seen in the
Asia/Pacific, EAME and Latin America regions, mainly through new business
with regional customers. The Fine Fragrances business unit achieved a
double-digit growth rate in Latin America as a result of higher demand from
regional and local customers.
The EBITDA for the Scent & Care segment in the first quarter amounted to EUR
64.8 million (Q1 2017: EUR 71.9 million). The year-on-year decrease reflects
negative currency effects, higher prices for raw materials and the one-off
gain from the sale of the Pinova industrial activities. The EBITDA margin
was 19.5 % (Q1 2017: 21.6 %).
Double-digit sales growth in the Flavor segment
Sales in the Flavor segment, which encompasses the business activities with
flavors for foods and beverages, grew organically in the first quarter at a
very dynamic rate of 11.0 %. All business units and regions showed
significant increases in sales. Taking into account exchange rate effects
and the Cobell acquisition, sales in this segment were up 7.8 % in reporting
currency in the first quarter to EUR 291.2 million (Q1 2017: EUR 270.2
million).
In the EAME region, applications for sweet and savory products delivered the
biggest organic increases, above all in the national markets of Germany,
France, Russia and Egypt. The Beverages business unit benefited from the
Cobell acquisition.
The Asia/Pacific region achieved in all business units high single-digit or
even double-digit percentage growth rates, with particularly satisfactory
results especially in China, Japan and Singapore.
The North America region also saw significant year-on-year gains in sales.
The Beverages application area showed a particularly dynamic trend resulting
from extensive new business.
The overall trend in the Latin America region was positive, with an organic
growth rate in the medium single-digit percentage range. The biggest impetus
came from the Sweet business unit, with good demand in the markets of Brazil
and Mexico.
In the Flavor segment, EBITDA increased to EUR 61.0 million. This result was
EUR 4.1 million higher than in the same period a year earlier (Q1 2017: EUR
56.9 million) despite unfavorable exchange rates, and represents an increase
of 7.2 %. The EBITDA margin, at 20.9 %, was down slightly (Q1 2017: 21.1 %),
mainly as a result of the Cobell acquisition.
Nutrition with strong demand for Food and Pet Food applications
The Nutrition segment, which includes the Diana division, with Food, Pet
Food and Baby Food applications as well as Probiotics, achieved organic
growth of 2.9 % in the first quarter. This reflects above all an announced
reduction in orders from a relevant probiotics customer. Adjusted for the
business unit Probi, the growth rate was 8.0 %. In consideration of
unfavorable exchange rates, sales in reporting currency, at EUR 153.8
million, were lower than in the same period in 2017 (Q1 2017: EUR 161.8
million).
The Food, Pet Food and Aqua business units achieved growth rates in the high
single-digit range. In the Food business unit, the strongest growth was seen
in the North America and Asia/Pacific regions. Pet Food applications
experienced the highest increases in Latin America and North America,
especially in Mexico, Argentina and the USA.
EBITDA in the Nutrition segment amounted to EUR 30.1 million in the period
under review. Due to negative currency effects, the loss of contributions to
earnings through the lower sales in the Probiotics business unit, and
start-up costs for the new plant in Georgia, USA, EDITDA was lower than in
the first quarter of 2017 (Q1 2017: EUR 36.7 million). As expected, the
EBITDA margin was 19.5 % (Q1 2017: 22.7 %).
Guidance affirmed
After a good start to the year, Symrise affirms its growth and profitability
targets for the current fiscal year. The Group remains confident that it
will continue to achieve growth on a sustainable basis. The target remains,
again in 2018, to significantly exceed the market growth rate, which
estimates indicate will lie between 3 % and 4 %. Healthy demand from
customers and numerous investment projects to increase capacity, especially
in the USA, will continue to push the Group's organic growth. In mid-2018
the capacity expansion for cosmetic ingredients in South Carolina will be
completed, and the new Diana site for food ingredients in Georgia will be
opened in the second half of the year.
Symrise aims to be highly profitable yet again in 2018 and to achieve an
EBITDA margin of approximately 20 %. The medium-term targets through to the
end of the fiscal year 2020 remain in effect, including a compound annual
growth rate (CAGR) in the 5-7% range and an EBITDA margin between 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 approximately EUR 3 billion in 2017, Symrise is among the
global leaders in the market for flavors and fragrances. Headquartered in
Holzminden, Germany, the Group is represented with more than 90 sites 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
E-Mail: E-Mail: [email protected]
[email protected]
Social media:
[1]twitter.com/symriseag 1. [1]linkedin.com/company/symrise 1.
https://twitter.com/symriseag https://linkedin.com/company/symrise
[1]youtube.com/agsymrise 1. [1]xing.com/companies/symrise 1.
https://youtube.com/agsymrise https://xing.com/companies/symrise
Financial calendar 2018
May 16
Annual General Meeting Holzminden
May 22
Dividend Payment
August 14
H1 Results
November 7
9M Results
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=SQJVEYAYXW
Document title: Symrise Q1 2018 Factsheet english
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08.05.2018 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, DE000SYM7787, DE000SYM7704
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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683277 08.05.2018
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