11.08.2016
Symrise AG DE000SYM9999
DGAP-News: Symrise determinedly pursues growth course and expansion of business activities (news with additional features)
DGAP-News: Symrise AG / Key word(s): Half Year Results/Quarter Results
Symrise determinedly pursues growth course and expansion of business
activities (news with additional features)
11.08.2016 / 07:00
The issuer is solely responsible for the content of this announcement.
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Report on the First Half of 2016
- Sales in first half up by 16 % at local currency to EUR 1,463 million
- EBITDAN increases by 8 % to EUR 323 million
- EBITDAN margin with 22.1 % still at excellent level
- Targets for 2016: outperforming market growth and now generating an
EBITDA margin above 20 %
Symrise AG determinedly continued its successful course in the second
quarter of 2016 and achieved substantial increases in sales and earnings.
The Group benefited from strong demand in both segments. Growth was
moreover driven by US-based Pinova Group, consolidated since the first
quarter. In the first half year, Symrise increased its sales by 10 % (local
currency: 16 %) to EUR 1,462.5 million (H1 2015: EUR 1,330.8 million).
Earnings before interest, taxes, depreciation and amortization without
special items from the Pinova acquisition and integration (EBITDAN)
increased year-on-year by 8 % to EUR 323.3 million (H1 2015: EUR 300.3
million). With an EBITDAN margin of 22.1 %, Symrise is again among the most
profitable companies in the industry.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: "After the successful
first half year, we are completely on track. We have seized opportunities
and substantially increased our sales and earnings. Moreover, with a clear
goal in mind, we have implemented a number of strategic initiatives to
diversify our portfolio. We have added to our competencies, both in the
flavors and fragrances business, which we intend to leverage in order to
further strengthen our status as a market leader. Despite the political and
economic volatility in some countries, we confidently look ahead to the
second half of the year. In both segments we anticipate strong demand and
again in 2016 we intend to outperform the global flavor and fragrance
market."
Dynamic demand in the segments and regions
In the first half of 2016, Symrise increased its sales by 10 % (local
currency: 16 %) to EUR 1,462.5 million (H1 2015: EUR 1,330.8 million).
Alongside the continuing strong demand in the segments, this development
was driven by Pinova Group, which was consolidated this year. Adjusted for
portfolio effects, the Symrise Group posted an impressive 8 % plus in sales
in local currency.
At the regional level, the strongest gains were recorded in North America,
where sales were up 31 % in local currency, followed by Latin America with
a 26 % increase. In the reporting period, the Asia/Pacific and EAME regions
grew sales by respectively 12 % and 7 % in local currency. Emerging Markets
reported a 17 % increase and accounted for 43 % of the Group's total sales.
EBITDAN margin at a healthy 22.1 %
Earnings normalized for the acquisition and integration of Pinova (EBITDAN)
were up 8 % (local currency: 14 %) to EUR 323.3 million (H1 2015: EUR 300.3
million). Despite the Pinova acquisition, the EBITDAN margin, at 22.1 %,
remained very strong (H1 2015: 22.6 %). Pinova is not yet meeting the
Group's profitability targets, but the integration is full on track. Net
income for the period under review, normalized for one-time effects,
increased to EUR 142.0 million (H1 2015: EUR 133.5 million). Normalized
earnings per share rose to EUR 1.09 (H1 2015: EUR 1.03).
High capacity utilization strengthens operating cash flow
The strong growth in earnings, combined with high capacity utilization,
positively affected the operating cash flow, which increased to EUR 100.0
million (H1 2015: EUR 86.0 million). The ratio of net debt (including
pension provisions) to EBITDAN stood at 3.6 (31 December 2015: 2.8). By the
end of 2016, the company intends to reduce the ratio to a level between 3.2
and 3.5, and in the medium term plans to keep it in the range of 2.0 to
2.5. With an equity ratio of 33 % (31 December 2015: 38 %), Symrise
continues to maintain a solid financial position.
Scent & Care segment
Scent & Care increased its sales by 22 % (local currency: 27 %) to EUR
667.8 million (H1 2015: EUR 546.5 million). The segment benefited in
particular from high capacity utilization in its fragrance and cosmetic
ingredients activities and from strong demand for menthol. Portfolio
effects, such as the integration of Pinova, contributed EUR 110.5 million
to Group sales. Even without these effects, Scent & Care achieved
significant growth by 7 % in local currency.
EBITDAN in the segment rose to EUR 140.1 million (H1 2015: EUR 124.2
million). Due to the Pinova acquisition, the EBITDAN margin, at 21.0 %, is
below the previous year's level (H1 2015: 22.7 %).
Flavor & Nutrition segment
Flavor & Nutrition achieved a 1 % increase in sales (local currency: 8 %)
to EUR 794.8 million. As in the previous quarter, growth was driven
particularly by strong demand for savory and beverage applications as well
as pet food.
Flavor & Nutrition grew its EBITDA to EUR 183.1 million (H1 2015: EUR 176.1
million). The EBITDA margin was up 0.5 percentage points to an outstanding
23.0 %.
Symrise is optimistic for the second half
After the successful first half, Symrise is confidently looking ahead to
the second half of the year. Despite the political and economic volatility
in some countries, the Group expects demand and growth dynamics to be
generally strong. Therefore, Symrise confirms its objective of
outperforming the global flavor and fragrances market, which is estimated
to be growing at an annual rate of 2-3 %. Despite the volatility of certain
exchange rates, Symrise aims to be among the most profitable companies in
the industry. Consequently, Symrise has adjusted its profitability target
and is now aiming for an EBITDA margin of above 20 %.
The Group also remains fully committed to the medium-term targets it has
set until the fiscal year 2020: A compound annual growth rate (CAGR) in the
range between 5 and 7 % and an EBITDA margin between 19 and 22 %.
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.
www.symrise.com
Media contact: Investor contact:
Bernhard Kott Tobias Erfurth
Tel: +49 (0)5531 90-1721 Tel: +49 (0)5531 90-1879
Email : [email protected] Email : [email protected]
Social media:
twitter.com/symriseag linkedin.com/company/symrise
youtube.com/agsymrise xing.com/companies/symrise
You will find the Reporting Fact Sheet at the end of this corporate news.
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=QQTAQURWBE
Document title: Symrise Reporting Fact Sheet H1 2016
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11.08.2016 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,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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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, Tradegate Exchange
End of News DGAP News Service
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491435 11.08.2016
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