10.05.2016
Symrise AG DE000SYM9999
DGAP-News: Symrise off to a strong start in 2016
DGAP-News: Symrise AG / Key word(s): Quarterly / Interim Statement/Quarter
Results
Symrise off to a strong start in 2016
10.05.2016 / 07:00
The issuer is solely responsible for the content of this announcement.
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Report on the First Quarter of 2016
- Sales up by 14 % at local currency
- Satisfactory growth in both segments
- EBITDAN increase by 6 % to EUR 158 million
- Profitability remains strong, with EBITDAN margin of 21.7 %
The fiscal year 2016 has started off well for Symrise AG. The Group
recorded dynamic demand from customers in both segments and across all
regions, realizing gains in sales as well as earnings. Moreover, US-based
Pinova Holdings, Inc., which was acquired at the beginning of the year, was
consolidated for the first time. In the first quarter, Symrise increased
Group sales by 10 % to EUR 731.8 million (Q1 2015: EUR 668.0 million).
Earnings before interest, taxes, depreciation and amortization without
special items from the Pinova acquisition (EBITDAN) increased by 6 % to EUR
158.5 million (Q1 2015: EUR 148.8 million). With an EBITDAN margin of
21.7 % (Q1 2015: 22.3 %), profitability remained on a high level.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: "Despite high volatility
in some markets, Symrise achieved solid first-quarter growth and is right
on track. We posted gains in all regions and both segments. After the
successful start to the year, we are generally confident as we look ahead
to the coming months. We will continue pushing ahead with our planned
growth projects, above all the integration of Pinova Holdings, the ongoing
crosslinking of our expertise, and the targeted expansion of capacity."
Symrise reports significant growth in all regions
In the first quarter, Symrise increased its sales in reporting currency by
10 % to EUR 731.8 million (Q1 2015: EUR 668.0 million). In local currency,
sales increased by 14 %. The Group benefited especially from double-digit
growth rates in fragrances and strong demand for beverage and savory
applications.
At the regional level, Symrise again experienced the strongest growth in
Latin America, where sales were up by 31 % in local currency. The
second-strongest region was North America, with a 30 % increase, followed
by Asia/Pacific(11 %) and EAME (4 %). Symrise also increased sales in
Emerging Markets, with a plus of 15 %.
Profitability remains at high level
Normalized for special items from the acquisition of Pinova, EBITDAN was up
6 % in the first quarter to EUR 158.5 million (Q1 2015: EUR 148.8 million).
The EBITDAN margin remained at 21.7 % high (Q1 2015: 22.3 %). Net income
for the period under review, normalized for one-time expenses, showed a 4 %
year-on-year increase to EUR 70.8 million (Q1 2015: EUR 68.0 million).
Normalized earnings per share rose to EUR 0.55 (Q1 2015: EUR 0.52).
Operating cash flow reflects build-up of inventories driven by customer
demand
Cash flow from operating activities for the reporting period decreased to
EUR 47.9 million (Q1 2015: EUR 68.4 million). This was due to the planned
build-up of inventories. The ratio of net debt to EBITDA stood at 2.5 (31
December 2015: 2.0). With an equity ratio of 34.2 % (31 December 2015:
38.0 %), Symrise continues to maintain a solid financial position.
Scent & Care benefits from strong performance in fragrances and cosmetics
Sales in the Scent & Care segment rose by 22 % to EUR 344.3 million
(Q1 2015: EUR 282.8 million). This represents a rise of 26 % at local
currency. The growth was driven in particular by strong demand for cosmetic
ingredients and menthol. Pinova, with sales of EUR 53.6 million, was
consolidated in this segment for the first time. Without Pinova, sales
growth in local currency was 7 %. The integration of Pinova was initiated
immediately in January. The related optimization of the production
processes is scheduled for completion by 2020. Symrise expects to realize
synergies totaling EUR 20 million.
Scent & Care grew its EBITDAN to EUR 72.5 million (Q1 2015: EUR 63.8
million). The EBITDA margin was with 21.0 % (Q1 2015: 22.5 %) at a good
level.
Flavor & Nutrition with strong dynamics in beverage and savory applications
as well as pet food
Flavor & Nutrition increased sales by 1 % to EUR 387.5 million (Q1 2015:
EUR 385.3 million). This represents a rise of 6 % at local currency. In the
year-on-year comparison it is important to note that the previous year's
figure still included sales from the Diana CAP business, which meanwhile
has been sold. Growth drivers in the first quarter were beverage and savory
applications as well as pet food.
EBITDA in the segment increased to EUR 86.0 million (Q1 2015: EUR 85.1
million). The EBITDA margin remained high, at 22.2 % (Q1 2015: 22.1 %).
Optimistic outlook for the remainder of 2016
Despite ongoing political conflicts and the economic volatility in some
regions, Symrise is overall confident for the fiscal year 2016. The Group
expects demand to remain solid in all regions and both segments. Against
this backdrop, Symrise has reaffirmed its objective of outperforming the
global flavor and fragrances market, which is estimated to be growing at an
annual rate of 2-3 %. Moreover, the Group aims to achieve an EBITDA margin
of about 20 %. The Group also remains fully committed to its medium-term
targets.
Key figures of the Group
in EURm Q1 Q1 Q1 Change Change in %
2015 2016 2016 in % at local
norm.1 currency
Symrise Group
Sales 668.0 731.8 731.8 10 14
Sales without Pinova 668.0 678.3 678.3 2 6
Sales Pinova 0.0 53.6 53.6
Gross profit 288.0 301.7 302.0 5 10
EBITDA 148.8 153.7 158.5 6 13
EBITDA margin in % 22.3 21.0 21.7
EBIT 106.4 108.0 112.7 6 14
EBIT margin in % 15.9 14.8 15.4
Depreciation 17.7 20.7 20.7
Amortization 24.7 25.0 25.0
Financial result -7.1 -12.9 -10.7
Profit before tax 99.3 95.0 102.0 3
Net income for the 68.0 66.2 70.8 4
period
Earnings per share in 0.52 0.51 0.55 4
EUR
R&D expenses 40.4 43.3 43.3 7 10
CAPEX 21.2 26.9 26.9
Operating cash flow 68.4 47.9 47.9
Scent & Care
Sales 282.8 344.3 344.3 22 26
Sales without Pinova 282.8 290.7 290.7 3 7
Sales Pinova 0.0 53.6 53.6
EBITDA 63.8 67.7 72.5
EBITDA margin in % 22.5 19.7 21.0
Flavor & Nutrition
Sales 385.3 387.5 1 6
EBITDA 85.1 86.0
EBITDA margin in % 22.1 22.2
Regional Sales Split
of Symrise Group
EAME 302.1 308.2 2 4
Asia / Pacific 143.9 156.6 9 11
Northern America 139.2 184.8 33 30
Latin America 82.8 82.2 -1 31
Other Key Figures Dec 31, 2015 Mar 31, 2016
Total assets 4,183.8 4,551.3
Equity 1,588.2 1,555.0
Equity ratio in % of 38.0 34.2
total equity and
liabilities
Net debt (incl. 1,575.7 2,016.4
pension provisions and
similiar obligations)
Net debt (incl. 2.8 3.4
pension provisions and
similiar obligations)
/ EBITDAN2 (ratio)
Net debt 1,131.1 1,503.0
Net debt / EBITDAN2 (ratio) 2.0 2.5
Employees (FTE3, 8,301 8,783
balance sheet day)
1 normalized 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 2.6 billion in 2015 place Symrise as one of the
global leading companies in the 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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10.05.2016 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,
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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; Terminbörse EUREX
End of News DGAP News Service
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