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Symrise sniffs out market demand to exceed sales and earnings

By Andrew McDougall , 09-Mar-2011

Symrise exceeded its sales and earnings for fiscal year 2010 thanks to the global economic recovery, strong boost in demand and a solid positioning in emerging markets.

The flavour and fragrance company increased sales by 15.4 per cent to €1.57bn, exceeding its sales growth prediction of achieving at least 8 per cent growth.

Strong economic recovery

The EBITDA margin expectation of 20 per cent was also beaten as the Germany-based firm recorded a rise of 21.1 per cent.

Symrise CEO Dr. Heinz-Jürgen Bertram explained: “We capitalised on the strong tailwind of the economic recovery and ran our utilisation at very high levels the whole year round.”

Bertram explained that besides strong growth in emerging markets it was also a strong revival in Western Europe and developed markets that contributed to the growth. Investment in the latter part of next year in its menthol production capacity also boosted the flavour and fragrance business.

Double digit growth in personal care

The Personal Care and Fine Fragrances unit attributed to the double digit growth rates of the Scent and Care division, which increased sales by 18 per cent.

Throughout the year new products were launched in all application areas of Scent and Care, including new anti-ageing ingredients and the aforementioned expansion of the menthol production facility, inaugurating new mixing and dosing capacity for perfume oils.

North America and EMEA markets benefitted from strong demand for fragrance and oral care products reporting 13 per cent growth in sales, in local currency, in both areas.

Asia/Pacific and Latin America also posted growth attributable to the fragrance unit with sales growth of 12 and 10 per cent respectively.

“Fine Fragrances clearly benefited most from the economic rebound and the improved consumer sentiment; the unit achieved the highest growth within the division,” commented Bertram.

Growth the flavour of the year

Flavor and Nutrition posted sales of €767m, a 13 per cent (10 per cent in local currency) rise on the previous year, helped by high demand from the beverage segment, and with its top customers.

The most dynamic business came from Latin America, although Asia/Pacific and EMEA also posted strong growth.

The company’s ‘Naturally Citrus’ campaign launched last year, which concentrates on driving Symrise’s citrus vision, provided strong growth particularly in Asia/ Pacific, whilst established Western European as well as the Gulf region and Eastern European markets drove growth in EMEA.

North America posted the lowest growth rate, 7 per cent at local currency, however benefited particularly from activities with major customers.

Rising EBITDA in both divisions

Flavour and Nutrition EBITDA rose 25 per cent to €170m; meanwhile Scent and Care increased 48 per cent to €161m.

For the current financial year, the global supplier expects that both divisions will both outperform the overall market for flavours and fragrances and expand their market share, with aims of increasing sales by 3 to 5 per cent at local currency and is projecting an EBITDA margin of more than 20 per cent for 2011.

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