Symrise Reports Strong Growth Amid Challenging Market Conditions

Symrise AG, a leading global supplier of fragrances, flavorings, cosmetic active ingredients, and functional ingredients, has reported significant growth and profitability for the first half of 2024, despite a challenging global environment. The company's strict cost management and robust business model have contributed to a 6.3% increase in group sales, reaching €2,565 million, with an organic growth rate of 11.5%. The EBITDA margin rose to 20.7%, significantly higher than the previous year's adjusted figure of 19.7%.

Sales and Profitability Growth

Symrise's growth was driven by its two core segments, with profitability supported by favorable material usage and an efficiency program that has already generated approximately 50% of its €50 million target savings. "Symrise is on course. I am committed to continuing Symrise’s success story – for the good of our customers, our shareholders, and our employees," stated Jean-Yves Parisot, Chief Executive Officer of Symrise AG. He emphasized the company's confidence in meeting its growth and profitability targets for the full year 2024.

Outlook and Long-Term Targets

Despite ongoing market volatility due to geopolitical tensions and high inflation, Symrise remains confident in its ability to maintain profitable growth. The company has confirmed its growth target of 5-7% (organic) and an EBITDA margin of around 20% for 2024. Additionally, Symrise aims to increase its sales to €7.5 to €8.0 billion by 2028, with a compound annual growth rate (CAGR) of 5-7%, supported by targeted acquisitions.

Taste, Nutrition & Health Segment Performance

The Taste, Nutrition & Health segment achieved 10.0% organic sales growth in the first half of 2024. The segment's sales amounted to €1,572 million, an increase of 2.9%. The Food & Beverage division saw particularly strong demand for savory products, resulting in double-digit organic growth, especially in the EAME (Europe, Africa, Middle East) and Latin America regions. The Pet Food division also sustained its growth trend, with dynamic sales development in Asia/Pacific and Latin America.

Scent & Care Segment Performance

The Scent & Care segment reported 14.1% organic sales growth, with total sales reaching €993 million, a 12.1% increase from the previous year. The Fragrance division experienced very strong organic growth, particularly in the Fine Fragrances and Consumer Fragrances business units. The Aroma Molecules division also saw a significant recovery, with high double-digit growth rates in the EAME and Asia/Pacific regions. The Cosmetic Ingredients division continued to perform well, with double-digit organic growth driven by strong demand in the EAME, Asia/Pacific, and Latin America regions.

Financial Highlights

Symrise's consolidated net income for the first half of 2024 was €239 million, a 27.7% increase from the previous year's figure of €188 million. Earnings per share rose to €1.71, compared to €1.34 in the same period of 2023. Cash flow from operating activities doubled to €288 million, while business free cash flow more than doubled to €226 million, representing 8.8% of sales, up from 4.4% in the previous year.

Highlights

• Symrise reported a 6.3% increase in sales to €2,565 million, with an organic growth rate of 11.5%.
• The company's EBITDA margin rose to 20.7%, significantly higher than the previous year's 19.7%.
• Taste, Nutrition & Health segment achieved 10.0% organic sales growth, driven by strong demand in the Food & Beverage division.
• Scent & Care segment reported 14.1% organic sales growth, with strong performance in the Fragrance and Cosmetic Ingredients divisions.
• Consolidated net income increased by 27.7%, with earnings per share rising to €1.71.
• Business free cash flow more than doubled, reaching €226 million in the first half of 2024.

Data source: https://www.symrise.com/investors/financial-results/