10.03.2015
Symrise AG DE000SYM9999
DGAP-News: Symrise Exceeds Targets and Achieves Substantial Increases in Sales, Earnings and Profitability
DGAP-News: Symrise AG / Key word(s): Final Results/Forecast
Symrise Exceeds Targets and Achieves Substantial Increases in Sales,
Earnings and Profitability
10.03.2015 / 07:00
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- Sales increase by 18 % at local currency to EUR 2.12 billion in year
under review
- EBITDAN rises by 24 % to EUR 464.5 million; EBITDAN margin increases to
21.9 %
- Net income normalized for one-time effects up 23 % to EUR 211.6
million
- Despite high capital expenditures, increase in dividend to EUR 0.75 per
share
- Diana Group fully consolidated and integration completed
In the fiscal year 2014, Symrise AG exceeded its targets and substantially
expanded its market position. The Group benefited from good demand in all
regions and in both segments as well as from a particularly strong
performance in the fourth quarter. In addition, with the acquisition of the
Diana Group in July 2014, Symrise succeeded in entering the baby food and
pet food markets and was able to expand its portfolio of natural
ingredients. For the full year, Group sales increased by 18 % at local
currency to EUR 2,120.1 million (2013: EUR 1,830.4 million). Earnings
before interest, taxes, depreciation and amortization as normalized for
one-time effects from the acquisition and integration of Diana (EBITDAN)
increased by 24 % to EUR 464.5 million (2013: EUR 373.1 million). With an
EBITDAN margin of 21.9 % (2013: 20.4 %), Symrise ranks again among the most
profitable companies in the industry.
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said:
"2014 was a very successful year for Symrise. We considerably expanded our
market position in Mature and Emerging Markets and significantly broadened
our portfolio of natural ingredients through the acquisition of Diana. But,
most importantly, we once more created value and substantially increased
sales, earnings and profitability. As a result, we are in an excellent
position, both strategically and financially, to continue our profitable
growth in 2015 and to outperform the market again."
Double-Digit Growth in all Regions
In fiscal year 2014, Symrise topped the EUR 2 billion mark in sales for the
first time, with a 16 % increase in reporting currency to EUR 2,120.1
million (2013: EUR 1,830.4 million). At local currency, this amounts to 18
% sales growth. Symrise grew its sales in all regions and in both segments.
The fourth-quarter performance was particularly strong, with a 35 %
increase in Group sales to EUR 590.1 million (2013: EUR 429.2 million) at
local currency; 37 % in reporting currency.
The strongest region in terms of sales growth in fiscal year 2014 was again
Latin America, followed by EAME, with sales increases of 27 % and 21 %,
respectively (both at local currency). The third-strongest region, with a
gain of 17 % at local currency was North America, followed by the
Asia/Pacific region, where sales grew by 10 %.
Outstanding Profitability with EBITDAN Margin of 21.9 %
The robust demand and the resulting high capacity utilization had a
substantial impact on the further improvement in profitability. In
addition, Symrise continued with its consequent cost management. One-time
effects in the amount of EUR 30 million were incurred through the
acquisition and integration of the Diana Group. Normalized earnings before
interest, taxes, depreciation and amortization (EBITDAN) increased by 24 %
to EUR 464.5 million in 2014 (2013: EUR 373.1 million). At local currency,
this equates to an increase of 27 %. Symrise boosted its normalized EBITDA
margin to an outstanding 21.9 % (2013: 20.4 %).
Expenses impacting the financial result increased in the year under review
by EUR 11.1 million to EUR - 48.4 million due to one-time, non-recurring
financing costs pertaining to the Diana Group acquisition. The net income
for the fiscal year 2014 as normalized for special effects increased to EUR
211.6 million. The reported net income increased to EUR 185.0 million
(2013: EUR 172.3 million). The reported earnings per share increased to EUR
1.48 (2013: EUR 1.46), and would have amounted to EUR 1.69 without special
effects which equals an increase of 16 % as compared to the previous year.
Against the backdrop of the strong earnings performance, the Executive and
Supervisory Boards propose to the Annual General Meeting a dividend
increase to EUR 0.75 (2013: EUR 0.70) for fiscal year 2014.
Cash Flow from Operating Activities up 25 %
Cash flow from operating activities increased by 25 % to EUR 343.2 million
(2013: EUR 274.8 million), reflecting in particular the operating result
and the inclusion of the Diana Group. The ratio of net debt to EBITDAN,
including pension provisions, amounted to 3.2 (December 31, 2014: 2.0) and
thus, due to the acquisition of the Diana Group, was temporarily outside
the target range of between 2.0 and 2.5. With an equity ratio of 35.8 %
(2013: 43.0 %), Symrise continues to operate on the basis of a strong
balance sheet.
Scent & Care Segment
The Scent & Care segment continued to focus on high-margin business in
2014. The segment increased sales in local currency by 4 % to EUR 980.4
million (2013: EUR 960.4 million); in the reporting currency, this
represents an increase of 2 %. Scent & Care made very satisfactory gains,
especially with Cosmetic Ingredients.
Scent & Care grew its EBITDA by 15 % to EUR 222.9 million (2013: EUR 194.5
million). The EBITDA margin increased by 2.4 percentage points to 22.7 %
(2013: 20.3 %).
Flavor & Nutrition Segment
Excluding Diana, Flavor & Nutrition increased its sales by about 6 %. At
local currency, this represents sales of EUR 905.8 million (2013: EUR 869.9
million). In the reporting currency, sales were up by 4 %.
Since July 2014, the sales and earnings contributions of the Diana Group
have been consolidated in the segment's results. Including Diana, Flavor &
Nutrition increased its sales by 34 % at local currency to EUR 1,139.7
million (2013: EUR 869.9 million). In the reporting currency, this
represents an increase of about 31 %. Diana Group contributed sales of EUR
233.9 million.
For the months from July through December, Diana Group contributed an
EBITDA of EUR 48.8 million. The segment's normalized EBITDA rose to EUR
241.6 million (2013: EUR 178.6 million) whilst its normalized EBITDA margin
amounted to 21.2 % (2013: 20.5 %).
Outlook 2015 - Long-Term Goals Fully Intact
In the current fiscal year, the Group expects to benefit from solid
customer demand and high capacity utilization in both segments as well as
in Mature and Emerging Markets. Prices of raw materials will continue to
influence the cost development in 2015. Although the costs of chemical
commodities were down at the end of 2014, prices of various agricultural
raw materials showed significant increases. Consequently, Symrise expects
continued volatility in raw material prices as well as certain currencies.
According to estimates, the global market for fragrances and flavors is
growing at 2 % to 3 % per year. For 2015, Symrise remains committed to its
goal of growing faster than the market and achieving an EBITDA margin of
more than 20 % for the Group.
In addition, Symrise confirms the objectives defined for the fiscal year
2020, namely a compound annual growth rate (CAGR) of 5 to 7 % and an EBITDA
margin in the range of 19 % to 22 %.
Key Figures of the Group
2010 2011 2012 2013 2014
Business
EUR
milli 1,57 1,58 1,73 1,83 2,12
Sales on 1.9 3.6 4.9 0.4 0.1
EUR
milli
EBITDA 1 on 331.2 315.9 338.9 373.1
464.5
EBITDA margin 1 in % 21.1 20.0 19.5 20.4 21.9
EUR
milli
EBIT 1 on 244.4 234.4 252.6 283.1
337.9
EBIT margin 1 in % 15.5 14.8 14.6 15.5 15.9
EUR
milli
Net income 1 on 133.5 146.5 157.5 172.3
211.6
EUR
Balance sheet total (as milli 2,05 2,12 2,15 2,21 3,99
of December 31) on 9.0 0.3 2 0.2 2 0.4 9.8
Capital ratio (as of 40.9 40.9
December 31) in % 40.9 2 2 43.0 35.8
EUR
Investments (without milli
M & A) on 70.5 67.3 70.3 70.7
101.3
Net debt (incl. pension
provisions and similar
obligations) / EBITDA
(as of December 31) 1 ratio 2.2 2.4 2 2.4 2 2.0 3.2
EUR
Research and development milli
expenses 1 on 107.9 107.6 113.8 127.0
138.9
EUR
milli
Operating cash flow on 235.1 200.9 219.5 274.8
343.2
Capital Market
Shares issued as of milli
balance sheet date ons 118.2 118.2 118.2 118.2
129.8
Share price at end of
fiscal year (Xetra(R)
closing price) in EUR 20.53 20.62 27.12 33.50
50.13
EUR
Market capitalization at milli 2,42 2,43 3,20 3,95 6,50
end of fiscal year on 6.1 6.7 4.9 8.8 7.5
Earnings per share 1 in EUR 1.13 1.24 1.33 1.46 1.69
0.75
Dividend per share in EUR 0.60 0.62 0.65 0.70 3
Environment
Carbon dioxide emissions
(Scope 1 and Scope 2) 4, 254. 251. 240. 226. 205.
5 in t 44 61 51 00 13
Chemical oxygen demand
(COD) in wastewater 4,
5 in t 5.96 6.47 5.73 5.68 4.88
Sensitive waste 4, 5 in t 21.97 18.74 16.51 14.99
15.54
Employees
Employees (as of
December 31) FTE 6 5,288 5,434 5,669 5,959
8,160
Fluctuation rate in % 5.1 5.5 5.3 4.4 4.8
Number of accidents MAQ 7 5.0 3.2 5.3 5.3 4.8
As a result of the combination of the business activities with Diana, only
the key financial figures and numbers of employees are presented in the
consolidated form.
1 Figures for 2014 normalized for transaction and integration costs as well
as one-off valuation effects related to business combinations
2 adjusted as a result of changes to accounting policies in 2012
3 proposal
4 per EUR m of value created
5 In 2014, we redefined the calculation method for our consumption and
emission values: We no longer calculate this data per ton of product, but
rather per EUR m of value created. The values from the previous years have
been adjusted accordingly. The underlying trend remains unchanged.
6 not including apprentices and trainees; FTE = Full Time Equivalent
7 MAQ = Number of reportable accidents (> 1 working day) x 1 million/number
of working hours
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.
Its sales of more than EUR2.1 billion in 2014 place Symrise among the top
three companies in the global flavors and fragrances market. 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.
Media contact: Investor contact:
Bernhard Kott Tobias Erfurth
Tel. +49 (0)5531 90-1721 Tel. +49 (0)5531 90-1879
[email protected] [email protected]
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10.03.2015 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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart
End of News DGAP News-Service
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