10.11.2015
Symrise AG DE000SYM9999
DGAP-News: Symrise achieves new all-time highs for growth and profitability
DGAP-News: Symrise AG / Key word(s): 9-month figures/Development of
Sales
Symrise achieves new all-time highs for growth and profitability
10.11.2015 / 07:00
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Nine-month report 2015
- Sales up by 29 % to EUR 1,977.0 million
- EBITDA increased by 30 % to EUR 448.5 million
- EBITDA margin rose to 22.7 %
- Sales increase of 25 % in Emerging Markets
- Targets for fiscal year 2015 confirmed
Symrise AG outperformed the overall market in the first nine months of 2015
and significantly boosted its earnings. The Group benefited from strong
demand in both segments and all regions. Symrise increased its sales by
29 % to EUR 1,977.0 million (9M 2014: EUR 1,530.0 million) and its earnings
before interest, taxes, depreciation and amortization (EBITDA) by 30 % to
EUR 448.5 million (9M 2014 normalized: EUR 343.8 million). With an EBITDA
margin of 22.7 % (9M 2014 normalized: 22.5 %), Symrise is among the most
profitable companies in the industry.
Dr Heinz-Jürgen Bertram, CEO of Symrise AG, said: "Our results speak for
themselves. There are very few companies in our industry that can match the
growth and profitability of Symrise. We have benefited from strong demand
in both segments and all regions, and have further reinforced our market
position. We continue to anticipate our full-year results for 2015 with
confidence. Our fourth quarter started out at a strong pace, and I believe
that we are very well positioned to make the best use of the remaining
weeks."
Above-average growth in both segments
Over the first nine months of the year, Symrise increased its sales by 29 %
to EUR 1,977.0 million (9M 2014: EUR 1,530.0 million). At local currency,
this amounts to sales growth of 23 %. Both segments and all regions
contributed to this strong performance. The Diana Group contributed sales
of EUR 395.4 million.
Even without the contributions from the Diana acquisition, Symrise achieved
above-average growth, with a 12 % gain in sales (local currency: 6 %).
Consequently, the Group once again grew at more than double the rate of the
global market for fragrances and flavors, which is estimated to be growing
at a rate of 2-3% per year.
Among the fastest-growing regions was Latin America, where sales in local
currency were up by 39 %. North America and EAME posted sales increases of
25 % and 21 %, respectively, followed by the Asia/Pacific region, at 16 %
(all in local currency).
Emerging Markets sales up by 25 %
Symrise also achieved strong growth in Emerging Markets with a sales
increase of 25 % at local currency. Over the first nine months of the year,
the Group generated 46 % of total sales in these highly dynamic markets.
The slight decline by one percentage point as compared to the
prior-year-period reflects the regional sales mix of the Diana Group, which
currently generates the majority of its sales in Developed Markets.
Outstanding profitability with EBITDA margin of 22.7 %
Earnings before interest, taxes, depreciation and amortization (EBITDA)
were up 30 % in the reporting period to EUR 448.5 million (9M 2014
normalized: EUR 343.8 million). The Diana Group contributed earnings of EUR
88.8 million. Even without this effect, Group earnings were up
substantially by 13 % to EUR 359.7 million. The EBITDA margin increased
from 22.5 % (normalized) in the prior-year-period to 22.7 %. The reported
net income for the period under review increased to EUR 199.3 million
(normalized 9M 2014: EUR 175.9 million). This represents a rise of 13 % in
the reporting currency. Earnings per share grew by 8 % from EUR 1.42
(normalized) to EUR 1.54 despite an increased number of shares due to the
capital increase carried out in the previous year.
Significant increase in cash flow from operating activities
Cash flow from operating activities for the reporting period rose by 15 %
to EUR 252.3 million (9M 2014: EUR 218.7 million). The ratio of net debt to
EBITDA decreased to 2.1 (31 December 2014: 2.3). Including pension
provisions, the ratio amounted to 2.9 (31 December 2014: 3.2). With an
increase in the equity ratio to 37.5 % (31 December 2014: 35.8 %), Symrise
continues to maintain a strong balance sheet.
Scent & Care segment
Sales in the Scent & Care segment rose by 10 % to EUR 812.3 million (9M
2014: EUR 736.8 million). The main growth drivers were the aroma molecules
and cosmetic ingredients business. At local currency, sales increased by
4 %.
Scent & Care increased its EBITDA compared to the prior-year-period to EUR
184.9 million (9M 2014: EUR 167.6 million). This represents an increase of
10 %. The EBITDA margin rose to an excellent 22.8 % (9M 2014: 22.7 %).
In September Symrise announced plans to purchase the US-based Pinova
Holdings, Inc. Pinova is a leading supplier of ingredients from natural and
renewable sources used mainly in the production of fragrance compositions
and oral care products. With this acquisition, Symrise is strengthening its
backward integration in important fragrance ingredients and expanding its
portfolio in the Scent & Care segment. In 2014, Pinova posted sales of US$
287 million along with a normalized EBITDA of US$ 37.4 million. Symrise is
acquiring Pinova Holdings for US$ 397 million, with a premium of up to US$
20 million subject to certain conditions being met. The deal is expected to
close at the beginning of 2016. Symrise then plans to move forward quickly
with the integration of Pinova.
Flavor & Nutrition segment
The Flavor & Nutrition segment increased sales by 47 % to EUR 1,164.7
million (9M 2014: EUR 793.2 million) in the first nine months of the year.
At local currency, this amounts to a 41 % gain. Even without the Diana
Group, the segment achieved strong organic growth and increased sales by 13
% (9 % in local currency). Major factors behind the strong performance in
this segment were new business in North America and strong demand for
culinary and beverage applications.
Flavor & Nutrition increased its EBITDA by 50 % in the period under review
to EUR 263.6 million (9M 2014 normalized: EUR 176.1 million). The EBITDA
margin rose to 22.6 % (9M 2014 normalized: 22.2 %).
Optimistic outlook for remaining weeks of 2015
After its strong performance in the first nine months of the year and a
good start in the fourth quarter, Symrise shows optimistic with regard to
the final figures for the fiscal year 2015. Despite political tensions in
some regions and a recent economic slowdown in some emerging countries such
as China, the company expects demand to remain strong in both segments and
all regions in the final quarter. For 2015, Symrise again expects to exceed
the growth rate for the industry as a whole and deliver an EBITDA margin of
more than 20 %. The Group remains fully committed to the mid-term targets
for 2020.
Key Figures of the Group
EUR million 9M 2014 9M 2014 9M 2015 Change Change in %
norm.1 in % at local
currency
Sales 1,530.0 1,530.0 1,977.0 29 23
EBITDA 330.9 343.8 448.5 30 29
EBITDA
margin in % 21.6 22.5 22.7
EBIT 258.2 271.1 319.6 18 17
EBIT margin in % 16.9 17.7 16.2
Net income
for the
period 160.8 175.9 199.3 13
Earnings per in
share EUR 1.30 1.42 1.54 8
CAPEX 55.6 55.6 112.3
Operating
cash flow 218.7 218.7 252.3
Scent & Care
Sales 736.8 736.8 812.3 10 4
EBITDA 167.6 167.6 184.9
EBITDA
margin in % 22.7 22.7 22.8
Flavor & Nutrition
Sales 793.2 793.2 1,164.7 47 41
EBITDA 163.3 176.1 263.6
EBITDA
margin in % 20.6 22.2 22.6
31.12.2014 30.09.2015
EUR
Balance sheet total million 3,999.8 4,067.2
Equity ratio in % 35.8 37.5
Net debt (incl. provisions for pensions
and similiar obligations) / EBITDAN 2 ratio 3.2 2.9
Employees FTE 3 8,160 8,294
1 adjusted for transaction and integration costs as well as one-off
valuation effects related to business combinations
2 annualized EBITDAN
3 not including apprentices and trainees; FTE = Full Time Equivalent
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 EUR 2.1 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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10.11.2015 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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