07.08.2014
Symrise AG DE000SYM9999
DGAP-News: Symrise AG: Symrise Continues to Grow and Significantly Increases Profitability
DGAP-News: Symrise AG / Key word(s): Half Year Results/Quarter Results
Symrise AG: Symrise Continues to Grow and Significantly Increases
Profitability
07.08.2014 / 07:01
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Report for the First Half of 2014
- EBITDAN rises by 9 % to EUR 209 million
- EBITDAN margin reaches 22.2 %
- Group sales up by approximately 6 % at local currency
- Earnings per share before special items up 14 % to EUR 0.90
- Integration of Diana Group initiated
Symrise AG remained on its successful course during the first half of 2014.
The Group increased sales at local currency in all regions, significantly
raised the operating result and completed the acquisition of French Diana
Group as planned. One-off non-recurring special items in connection with
M&A activities affected the operating result with EUR 3.4 million and the
financial result with EUR 7.5 million. Earnings before interest, taxes,
depreciation and amortization without special items (EBITDAN) increased
significantly by 9 % to EUR 209 million (H1 2013: EUR 191 million). The
corresponding normalized EBITDA margin amounted to 22.2 %, compared to 20.5
% in the prior year period. Furthermore, Symrise increased its sales in the
first six months to EUR 942 million (H1 2013: EUR 935 million). At local
currency, sales grew by 6 %. At the end of July, Symrise completed the
acquisition of French Diana Group, which will first be consolidated from
July 2014 onwards. The integration process has already been initiated.
Dr Heinz-Jürgen Bertram, CEO of Symrise AG: "Symrise is entering the second
half of the year with full steam ahead. In the first six months we have
grown significantly and improved our profitability even further. High
capacity utilization, our continued cost discipline and, above all, our
focus on high-margin business were significantly contributing to this
development. By successfully completing the acquisition of Diana at the end
of July, we have finalized the largest acquisition in our company's history
on schedule. We also completed the acquisition financing in record time.
This allows us to now fully concentrate on the integration process in the
areas of research and development as well as production and sales. I am
certain that we will further accelerate our profitable growth together with
Diana."
Sales Increase of 6 % at Local Currency
Symrise increased sales in the first half-year by 6 % at local currency to
EUR 942 million. In reporting currency sales growth amounted to 1 %. Strong
impulses came from all regions and both divisions.
With a sales increase of 12 % at local currency, Latin America recorded the
strongest growth dynamics. EAME grew sales by 5 %, Asia/Pacific and North
America increased sales by 6 % and 4 % respectively.
Normalized EBITDA Margin Improves to 22.2 %
Good capacity utilization during the first six months, consistent cost
discipline and the focus on high-margin business significantly contributed
to the earnings increase. In the reporting period one-off non-recurring
items of EUR 3.4 million occurred in connection with the acquisition and
integration of the Diana Group. These affect the Flavor & Nutrition
segment only. Group earnings before interest, taxes, depreciation and
amortization normalized for special items (EBITDAN) increased by 9 % to EUR
209 million (H1 2013: EUR 191 million). The normalized EBITDA margin
improved on a high level by 1.7 percentage points to 22.2 % (H1 2013: 20.5
%). In addition, the financing of the acquisition led to one-off costs in
the amount of EUR 7.5 million which are attributed to the financial result.
Net income for the period came in at EUR 101 million compared to EUR 93
million in the prior year. Earnings per share rose from EUR 0.79 to EUR
0.84; on a normalized basis, earnings per share in the first half of 2014
amounted to EUR 0.90 per share. This corresponds to an increase of 14 %.
Significant Rise in Cash Flow from Operating Activities
Cash flow from operating activities also increased significantly to EUR 109
million (H1 2013: EUR 77 million). As of June 30, 2014, the ratio of net
debt including pension provisions to EBITDA amounted to 1.1. This
represents a significant improvement as compared to 2.0 at the end of 2013
and is a result of the capital increase carried out in May.
Sales Growth of 9 % in Emerging Markets
Symrise once again benefited from its strong presence in the Emerging
Markets during the first half-year. The company recorded a sales increase
of 9 % at local currency in these particularly dynamic markets, thereby
exceeding the Group's overall growth rate. The share of Group sales
attributed to the Emerging Markets amounted to 48 %, the same level as in
the prior year period. At local currency, the share already came to more
than 50 %.
Scent & Care
The Scent & Care segment extended its business in every region and boosted
its sales by 6 % at local currency. In reporting currency this represents
an increase of 0.5 % to EUR 493 million compared to the exceptionally
strong prior year (H1 2013: EUR 490 million). Strong impulses were again
seen in the Fragrances and Life Essentials divisions, which both realized
high single-digit growth rates.
With an increase of 12 % at local currency, Scent & Care generated
significant sales growth in Latin America. Furthermore, the division
increased its sales in EAME by 5 % and by 4 % in both, North America and
Asia/Pacific.
Scent & Care increased its EBITDA to EUR 110 million (H1 2013: EUR 98
million). The EBITDA margin rose from 20.1 % to 22.3 %.
Flavor & Nutrition
The Flavor & Nutrition segment generated a sales growth of 6 % at local
currency to EUR 449 million (H1 2013: EUR 444 million). In reporting
currency this corresponds to a sales increase of 1 %. Similar to Scent &
Care, the Emerging Markets made an important contribution to the division's
development.
Latin America was the fastest-growing region, generating sales growth of 12
% at local currency. In Asia/Pacific, Flavor & Nutrition achieved sales
growth of 8 % at local currency. In EAME, sales rose by 5 % in local
currency despite high comparable figures from the prior year period. North
America built on the positive development of the preceding months and grew
by 3 % at local currency.
Flavor & Nutrition generated an EBITDA before special items of EUR 99
million during the reporting period (H1 2013: EUR 93 million). The
normalized EBITDA margin amounted to 22.1 % (H1 2013: 20.9 %).
Diana Integration Initiated Following Completion of Transaction
Following the announcement of the planned acquisition of Diana Group in
April, Symrise successfully implemented several measures in the second
quarter for financing the transaction. In May, Symrise generated proceeds
of around EUR 400 million from a capital increase based on authorized
capital. In addition, the company secured short and medium-term borrowings
from its primary banks amounting to EUR 400 million. Symrise also
successfully placed a EUR 500 million long-term bond that was
oversubscribed several times. Symrise used this comprehensive financing
concept totaling EUR 1.3 billion at highly attractive conditions to finance
the largest acquisition in its history.
The transaction was completed on July 29, 2014 following the corresponding
approvals. Symrise subsequently introduced initial measures for
integration. Hereby, the focus lies on the integration of Diana as an
independent division in the Flavor & Nutrition segment, which is
responsible for all activities in the area of nutrition. Symrise and Diana
will continue to focus intensively on their customers and research
projects. Diana will be consolidated for the first time in the third
quarter of 2014.
Symrise will continue to report at the level of both Flavor & Nutrition and
Scent & Care segments.
Positive Outlook for 2014
Following a successful first half-year, Symrise confirms its outlook for
the 2014 fiscal year. The Group further expects solid demand and a positive
market development in all regions and in both divisions. For 2014 Symrise
is furthermore confident to outperform local currency growth of the global
market for fragrances and flavors. Furthermore, Symrise continues to aim at
an EBITDA margin of more than 20 %. The objectives 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)
between 5 % and 7 % and an EBITDA margin between 19 % and 22 %.
Key Figures of the Group
Change in
HY 2014 %
HY HY norma- Change at local
In EUR million 2013 2014 lized1 in %
currency
Sales 934.7 941.8 941.8 0.8 5.9
EBITDA 191.2 205.6 209.0 9 13
EBITDA margin in % 20.5 21.8 22.2
EBIT 147.4 161.9 165.3 12 17
EBIT margin in % 15.8 17.2 17.5
Net income for
the period 93.4 101.3 109.1 17
Earnings per in
share EUR 0.79 0.84 0.90 14
Investments/
Acquisitions 98.5 30.4 30.4 -69
Cash flow from
operating
activities 77.0 108.9 108.9 41
Scent & Care
Sales 490.3 492.5 0.5 5.8
EBITDA 98.4 109.8
EBITDA margin in % 20.1 22.3
Flavor & Nutri-
tion
Sales 444.4 449.3 449.3 1.1 6.1
EBITDA 92.8 95.8 99.2
EBITDA margin in % 20.9 21.3 22.1
December June 30,
31, 2013 2014
EUR
Balance sheet total million 2,210.4 2,638.2
Equity ratio in % 43.0 51.0
Net debt (incl. pension provisions and
similar obligations)/EBITDA ratio 2.0 1.1
Employees FTE 2 5,959 6,023
1 One-off non-recurring items include transaction and integration costs as
well as one-off valuation effects related to business combinations.
2 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]
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07.08.2014 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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