Symrise outperforms the market with Q1 growth

By Andrew McDougall

- Last updated on GMT

Related tags: Economic development, Symrise

Business with major customers and emerging markets helped drive growth and get Symrise off to a good start for the financial year 2011 as it posted high sales and earnings figures.

In the first quarter of 2011 Symrise benefited from the continued positive development of demand even though it was more moderate than in the previous year, which was characterized by catch-up effects.

During the reporting period Symrise increased sales by 6.6 per cent to €416.8m, thereby again growing faster than the market for flavors and fragrances.

The flavours and fragrance company said the growth was driven by business with major customers as well as activities in emerging markets, especially Latin America.

Emerging markets contribute to growth
Dr. Heinz-Jürgen Bertram, Symrise CEO, said: “As expected, markets have returned to more moderate growth following the extraordinarily strong year 2010. Thanks to our good strategic positioning we continue to benefit from the dynamic demand in important markets, especially the Emerging Markets in Asia and Latin America.”

The Germany-based firm maintained its EBITDA margin at over 20 per cent which Bertram stated demonstrates that Symrise is able to successfully meet the challenges posed by raw material markets at present.

“We have set a good basis during the first quarter and are confident as we look to the coming months. However, uncertainties remain with regards to the political developments in North Africa and the Middle East, the effects of the natural disaster in Japan, and the price development on raw material markets.”
Emerging markets accounted for 46 per cent of Group sales, with Latin America by far the most dynamically growing region with a 21 per cent increase in sales.
Business with major customers accounted for around 30 per cent of total Group sales, which Symrise said was supported by good core list positions and good access to customers.
Scent & Care matches Group growth

In the first quarter Scent & Care boosted sales by 6.6 per cent to €218.4m compared to the previous year total of €204.8m.
The German firm explained that positive economic developments and the strong demand in the luxury segment were especially noticeable in the Fine Fragrances segment.

Scent & Care also benefited from business with major customers, as well as the launch of a number of skin care and cosmetic products in the Life Essentials segment.

In Latin America the division achieved strongest growth with a sales increase of 17 per cent at local currency.
Based on the positive development of demand in the first quarter Symrise has announced it is confident about the outlook for the course of the financial year.

The Group has maintained its objective of again outperforming the market and aims at increasing sales between 3 per cent and 5 per cent at local currency.

Related topics: Business & Financial

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