The flavours, fragrance and cosmetics ingredients player saw organic group sales up by a significant 5.2%, with actual group sales after adjustment for portfolio and exchange rate sitting at 3.6%, reaching EUR 1,515.3 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA), at € 322.9 million, was at the same level as in the first half of 2016. With an EBITDA margin of 21.3 %, Symrise asserts that it remains highly profitable.
Seeing return on investment
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG says the solid performance is a result of savvy spending in terms of investments into the business.
"The strong growth results from our unique positioning," he states. “The targeted and continuous investments in our competencies and capacity are paying off. We see this as a confirmation of our strategy.”
Scent & care: less strong?
The company has enjoyed successful showing across its segments; however, scent & care is one area where the performance lagged a bit behind the rest of the company's’ activities.
Scent & care for Symrise recorded sales of € 638.2 million in the first half of the year (H1 2016: € 667.8 million), and the company says that this slight decrease was due to the strong sales in the previous year and the sale of Pinova's industrial activities at the end of 2016.
Symrise voices optimism for the segment, with the company stating: “Adjusted for the Pinova portfolio effect, the segment achieved an organic growth of 1.1 %, with good dynamics in Fine Fragrances and Cosmetic Ingredients.”
Looking forward: raising guidance for EBITDA margin
Symrise is optimistic for a continued strong performance in the months ahead for 2017.
“After the strong first half and a good start in the third quarter, Symrise is looking ahead to the remaining months of the year with confidence,” it says.
“Despite the political unrest and economic uncertainties in some countries, the Group expects demand and growth to be generally strong.”
The company confirms that, ‘against this backdrop, and in view of the recent investment projects’, Symrise is increasing its guidance for the EBITDA margin for the fiscal year 2017, and now expects to achieve a margin of over 20%.