10.03.2014
Symrise AG DE000SYM9999
DGAP-News: Symrise AG Achieves Record Levels in Sales and Profitability in 2013
DGAP-News: Symrise AG / Key word(s): Final Results
Symrise AG Achieves Record Levels in Sales and Profitability in 2013
10.03.2014 / 07:00
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- Sales increase by 10 % at local currency in 2013
- Substantial 10 % increase in EBITDA to EUR 373.1 million
- Net income sets new all-time high with EUR 172 million
- Dividend increase to EUR 0.70 proposed
- For 2014 outperformance of market growth targeted - long-term outlook
confirmed
Symrise AG continued its dynamic profitable growth course in 2013 and
achieved new all-time highs in sales and earnings during its tenth
anniversary year. The Group grew sales by 6 % to EUR 1,830 million (2012:
EUR 1,735 million). In local currency, this corresponds to an increase of
10 %. Earnings before interest, taxes, depreciation and amortization
(EBITDA) also rose considerably by 10 % to EUR 373 million (2012: EUR 339
million). With an EBITDA margin of 20.4 % (2012: 19.5 %), Symrise managed
to further increase its profitability this past fiscal year. These
excellent developments were supported by both divisions. Scent & Care
performed particularly well, benefiting from a positive consumer sentiment
worldwide, strong demand for menthol and the fragrance activities acquired
from the Belmay Group. Symrise recorded the strongest growth at local
currency in North and Latin America. The group also continued to grow in
the Emerging Markets and increased sales at local currency by 11 % compared
to the previous year.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: "In the 2013 fiscal
year, Symrise again clearly outperformed the global market for flavors and
fragrances. We achieved new records in sales and earnings despite a very
volatile economic climate. We particularly benefited from our expanded
menthol activities and from high demand for flavors used in sweet and
savory applications. Our expanded fragrance activities in the USA also made
a significant contribution. Ten years after its founding, Symrise holds a
leading position in all of its market segments. This is the result of our
focused expansions, the diversification of our customer base and our
innovative portfolio. Symrise is thus well-positioned to maintain its
excellent growth and earnings trajectory as it opens the next chapter of
its corporate development."
Group Sales Up 10 % at Local Currency
Symrise grew Group sales in the 2013 fiscal year by 6 % to EUR 1,830
million (2012: EUR 1,735 million). At local currency, this corresponds to a
10 % increase. Symrise therefore successfully accomplished its goal of
growing faster than the global market for flavors and fragrances. According
to estimates, the market grows by 2 to 3 % per year.
In North America, Symrise achieved its strongest sales growth with 11 % (14
% at local currency). Alongside of organic growth, the Group also benefited
from its acquisition of the US-American Belmay Group's fragrance activities
in March 2013. In the EAME region, Symrise posted sales gains of 5 % (7 %
at local currency). In the Asia/Pacific region, Symrise increased sales by
4 % (10 % at local currency). Sales performance in Latin America was
weakened by the devaluation of some local currencies compared to the Euro,
therefore sales developed only moderately with an increase of 2 %. Without
these negative currency effects, sales growth in Latin America amounted to
12 %.
EBITDA Increases 10 % to EUR 373 Million
Symrise once again demonstrated its high profitability in 2013: Despite
strategic growth investments in research and development, new production
capacities and additional sales units, the Group boosted its earnings
before interest, taxes, depreciation and amortization (EBITDA) by 10 % to
EUR 373 million (2012: EUR 339 million). The EBITDA margin increased from
19.5 % in the previous year to 20.4 % and therefore was within the targeted
range of between 19 and 22 %. Symrise was thus once again among the most
profitable companies in the industry.
Net income was up by 9 % to EUR 172 million (2012: EUR 158 million), the
highest figure ever since the founding of Symrise. Correspondingly,
earnings per share rose to EUR 1.46 (2012: EUR 1.33). The Executive and
Supervisory Boards will therefore propose a dividend of EUR 0.70 (2012: EUR
0.65) for the 2013 fiscal year at the Annual General Meeting on May 14,
2014.
Cash Flow from Operating Activities Up 25 %
The Group's good earnings performance had a positive impact on cash flow
from operating activities: It increased by 25 % to EUR 274.8 million (2012:
EUR 219.5 million).
Net debt including pension provisions decreased to EUR 744.8 million
compared to fiscal year 2012 (Dec. 31, 2013: EUR 808 million). The ratio of
net debt including pension provisions to EBITDA came to 2.0 (Dec. 31, 2012:
2.4) and was therefore at the lower end of the targeted range of 2.0 to
2.5.
Sales Increase by 11 % at Local Currency in Emerging Markets
Symrise's strategy places a strong focus on business in the Emerging
Markets. For years, the Group has been enhancing its presence in these
markets and aligning its offers with their specific demand profiles, which
are characterized by growing populations and economic progress. Although
economic performance was weaker in certain Emerging Markets in 2013,
Symrise managed to continue its growth course unhindered. The Group
increased sales in Emerging Markets by 11 % at local currency. With a share
of 48 % in reporting currency, the Emerging Markets delivered almost half
of group sales in 2013.
Scent & Care Division
The Scent & Care division seamlessly continued its dynamic growth course in
2013 and increased sales by 9 % to EUR 960.4 million (2012: EUR 882.8
million). At local currency, this corresponds to a growth of 13 %.
The division expanded both, organically as well as through acquisitions and
benefited from three factors: the high demand for perfumes, the fragrance
activities acquired from Belmay and the menthol business.
Scent & Care's strongest regional growth was posted in North America. Here,
sales were up by 19 % at local currency - driven by high, double-digit
growth rates in the Oral Care and Aroma Molecules application areas as well
as by the business acquired from Belmay. The second-strongest region in the
Scent & Care division was Asia/Pacific, which posted a sales increase of 14
% at local currency. This result was especially supported by business
performance in China, India, Japan and Indonesia. Latin America also
developed dynamically: The region increased its sales by 11 % at local
currency and particularly benefited from high demand in the perfumes and
cosmetics application areas. After the sales drop in the prior year, the
EAME region showed a strong recovery in 2013 - recording a sales increase
of 10 % at local currency. Along with the positive developments in Western
Europe, the main contributors to this result were the recovery in Eastern
Europe and strong growth in Africa and the Gulf region.
Scent & Care increased its EBITDA to EUR 194.5 million (2012: EUR 161
million). The EBITDA margin rose to 20.3 % compared to 18.2 % in 2012.
Flavor & Nutrition Division
Flavor & Nutrition increased sales by 2 % to EUR 870 million in 2013 (2012:
EUR 852 million). Adjusted for exchange rate effects, this growth amounted
to 6 %. Every application area contributed to this growth, with sweet and
savory products making the strongest contributions, as well as the Consumer
Health application area.
Latin America recorded the strongest sales increase for the division with
sales up by 15 % at local currency. The region benefited from strong growth
in all flavor application areas. The second-strongest region was
Asia/Pacific, which posted 7 % sales growth at local currency. Here, Flavor
& Nutrition expanded its business, especially with savory products as well
as in the Consumer Health area. In North America, the division increased
sales by 6 % and benefited from considerable new business with selected
customers. In the EAME region, Flavor & Nutrition posted even stronger
growth than in the previous year, up 5 % at local currency. This was mainly
driven by higher demand from Eastern Europe, Africa and the Gulf region.
The mixing plant that opened in Holzminden this past June also provided
further capacities and contributed to the result.
Flavor & Nutrition generated an EBITDA of EUR 178.6 million (2012: EUR
177.8 million). The EBITDA margin was 20.5 % (2012: 20.9 %) despite large
investments into new capacities and sales units.
Focus on Sustainable, Profitable Business
At the beginning of 2013, Symrise announced long-term targets for its
business activities for the first time. The targets apply through the end
of the 2020 fiscal year. The Group is aiming to increase sales by an
average of 5 to 7 % annually (CAGR). In addition, Symrise is also striving
to be among the most profitable companies in the industry. By the end of
2020, earnings before interest, taxes, depreciation and amortization
(EBITDA) should amount to more than EUR 500 million. The EBITDA margin
should be within the range of 19 to 22 %.
Symrise's profitable growth course is based on three strategic pillars: The
focused expansion of its business in established and particularly Emerging
Markets, the constant improvement of its efficiency as well as innovations
within the context of a diversified product portfolio. The Group links
commercial success with sustainable business practices. Accordingly,
Symrise aims to procure its most important natural raw materials from
sustainable sources by 2020. Symrise also wants to further reduce its
impact on the environment.
Above-Average Growth Targeted for Current Fiscal Year 2014
Symrise has entered fiscal year 2014 with positive economic expectations.
The Group expects to grow in both divisions and to benefit from solid
consumer demand. Although dynamics in some Emerging Markets have recently
decreased to some extent, Symrise remains confident in its ability to also
expand business in those markets in 2014. In addition, Symrise again
anticipates solid results from the established markets. Accordingly,
Symrise is expecting to grow as a Group and in both divisions faster than
the international market for flavors and fragrances, which is projected to
grow by between 2 to 3 %. With respect to cost development, Symrise
anticipates continued volatility with raw material prices. Some currencies
will also remain under pressure. Symrise nonetheless confirms its
objectives to deliver profitable growth and to achieve an EBITDA margin of
around 20 % in 2014.
Image material from Symrise AG as well as the Executive Board members is
available on the Company's website:
http://www.symrise.com/newsroom/press-images/management/
KEY FIGURES OF THE GROUP EUR MILLION 2012 2013 CHANGE CHANGE IN % IN % at local currency Sales 1,734.9 1,830.4 5.5 9.8 EBITDA 338.9 373.1 10 13 EBITDA margin in % 19.5 20.4 EBIT 252.6 283.1 12 15 EBIT margin in % 14.6 15.5 Net income 157.5 172.3 9 Earnings per share in EUR 1.33 1.46 9 CAPEX 70.3 142.9 103 Operating cash flow 219.5 274.8 25 Scent & Care Sales 882.8 960.4 8.8 13.0 EBITDA 161.1 194.5 EBITDA margin in % 18.2 20.3 Flavor & Nutrition Sales 852.1 869.9 2.1 6.5 EBITDA 177.8 178.6 EBITDA margin in % 20.9 20.5 DEC. 31, 2012¹ DEC. 31, 2013 Balance sheet total EUR million 2,150.2 2,210.4 Equity ratio in % 40.9 43.0 Net debt (incl. provisions ratio 2.4 2.0 for pensions and similiar obligations)/ EBITDA Employees FTE² 5,669 5,959 ¹ previous year's figures have been adjusted as a result of changes to accounting policies ² not including apprentices and trainees; FTE = Full Time EquivalentAbout 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 EUR 1.830 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 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 Phone +49 (0)5531 90-1721 [email protected] Investor contact: Tobias Erfurth Phone +49 (0)5531 90-1879 [email protected] End of Corporate News --------------------------------------------------------------------- 10.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and 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: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 256527 10.03.2014
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