EANS-News: Symrise AG Starts Fiscal Year with Robust Sales Growth
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quarterly report
Holzminden (euro adhoc) - - Sales rise 4 % to EUR 433 million
- EBITDA margin of 20.1 % despite higher raw material costs
- Sales with global customers up 10 %
- Symrise raises sales forecast for Fiscal Year 2012
Symrise AG has enjoyed a strong start to the 2012 fiscal year. The Group posted
robust sales growth and achieved the targeted EBITDA margin of 20 % despite
higher raw material brightening costs. Over the course of the quarter, Symrise
benefited from improving market conditions and as a result saw a stronger
demand for its products. Compared to the prior-year quarter sales rose 4 % to
EUR 432.6 million (Q1 2011: EUR 416.8 million). This development was driven in
large part by the disproportionate growth seen in business with global
customers. North and Latin America also provided notable growth impetus.
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: "Symrise
is off to a solid start for the current fiscal year. After the subdued
development at the beginning of this year, the market environment improved
faster than originally anticipated. Our business with global customers has
grown especially rapid. In addition, we maintained our profitability at our
targeted margin level of 20 % despite high raw material costs. We also expanded
our market presence with targeted acquisitions and strengthened our focus on
innovation in fast growing market segments. In view of the positive
developments seen in this quarter, we are raising our sales outlook for the
current financial year."
Sales up 4 %
Symrise generated sales of EUR 432.6 million during the first quarter of 2012
(Q1 2011: EUR 416.8 million). After a reserved start to 2012, economic
development brightened over the course of the first quarter, particularly in
March, and stimulated a positive boost to demand. With an increase of 4 % (2 %
at local currency), the Group has laid the foundation for further growth over
the course of the year.
Latin America continued its positive development, achieving a sales increase of
10 % (10 % at local currency). Particularly Oral Care, Sweet and Beverage
application areas contributed to this growth. Business in North America
significantly recovered, posting sales growth of 13 % (9 % at local currency).
This was mainly supported by high demand in Life Essentials and Oral Care.
Sales in Asia/Pacific were up 5 % (1 % at local currency). The individual
segments developed very favorably in this region. Sales in the EAME region
decreased by 2 % against the prior-year quarter (-2 % at local currency). A
positive development in Fine Fragrances could not fully compensate for the
lower demand in the UV Protection and in Aroma Molecules.
EBITDA margin of 20.1 % achieved
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by
2 % to EUR 87.0 million (Q1 2011: EUR 85.2 million) in the reporting period.
Along with higher energy costs, the ongoing volatility of raw material prices
influenced the result. In addition to the steep rise of the oil price, the
first quarter also saw selective price increases for other raw materials.
Symrise benefited from its backwards integration with important raw materials
which will be further expanded with the nearly finished addition of production
capacities for Menthol. Despite these impacts on the cost side, the Group was
able to keep profitability above its target mark with an EBITDA margin of 20.1
% (Q1 2011: 20.5 %).
Net income for the period amounted to EUR 43 million corresponding to a 3 %
increase on the prior-year quarter (Q1 2011: EUR 41 million). Symrise slightly
increased its earnings per share to EUR 0.36 (Q1 2011: EUR 0.35).
Balance Sheet and Cash Flow
Symrise ended the first quarter with a stronger balance sheet and enhanced
financial strength. The equity ratio increased to 45 % against the same period
last year (Q1 2011: 43 %). Cash flow from operating activities rose to EUR 19.7
million; it was therefore significantly above the previous year's figure (Q1
2011: EUR 6.4 million) which was impacted by greater working capital due to the
increase of strategic inventories. At 2.2, the ratio of net debt incl. pension
provisions to EBITDA remained nearly even compared to the first quarter and the
end of 2011; it remained at the lower end of the target range of 2 to 2.5.
Expanding Market Presence in Emerging Markets
During the first quarter, Symrise strengthened its market presence in the
emerging markets through organic growth and acquisitions. With the takeover of
Belmay's Brazilian activities, the Group expanded its existing range of offers
with products for the Fine Fragrances, Hair Care and Personal Care application
areas. Emerging markets accounted for 46 % of total sales in the first quarter.
Above Average Growth with Global Customers
Symrise also continued to expand its strategically important business with
internationally operating food and consumer goods corporations in the first
quarter. Sales with the ten largest customers per division increased 8 % at
local currency, considerably exceeding the growth rate of overall sales.
Business with global customers was especially dynamic in the Scent & Care
division with an increase of 10 % at local currency. Flavor & Nutrition posted
a sales increase of 5 % at local currency in line with the top ten customer
business. The Group generated almost one third (32 %) of its sales with top ten
customers in the reporting period.
Scent & Care Division
Scent & Care posted sales of EUR 225 million in the first quarter (Q1 2011: EUR
218 million), corresponding to a growth of 3 % (1 % at local currency) compared
to the prior-year quarter.
The Oral Care business achieved double-digit sales growth due to new business
in North and Latin America. In addition, Scent & Care benefited from the
expansion of its portfolio, strengthening its position as one of the leading
providers of product solutions for cosmetic applications. In Fine Fragrances
sales growth was more moderate and reflected slower demand.
With sales up 15% at local currency Latin America was once again the fastest
growing region for Scent & Care. The division boosted sales considerably in the
Oral Care business due to newly gained business wins. With the acquisition of
Belmay's Brazilian activities, Scent & Care further expanded its existing
portfolio. The second strongest region was North America, with sales growth of
7 % at local currency. Strong increases in Oral Care and Life Essentials were
the main drivers. In February, Symrise announced the acquisition of Trilogy
Fragrances which strengthens the dynamically growing business with natural
perfume oils and contributes to further expand the Group's presence in North
America. In Asia/Pacific, the division generated growth of 2 % at local
currency and benefited from increasing demand in Menthol applications and for
household products. Despite the positive development of Fine Fragrances in
EAME, sales in the region decreased 6 % at local currency and mainly reflect
lower demand in UV protection and Aroma Molecules.
In the reporting period EBITDA for Scent & Care increased 4 % to EUR 45
million. The EBITDA margin for the division was slightly above the previous
year's mark at 19.9 % (2011: 19.7 %).
Flavor & Nutrition Division
Flavor & Nutrition increased sales by 5 % to EUR 208 million (Q1 2011: EUR 198
million) in the first quarter 2011. At local currency, this corresponds to a
sales growth of 3 %. The division benefited from its strong position with
global customers and the expansion of its activities in North America.
With a sales rising by 11 % at local currency, Flavor & Nutrition experienced
particularly dynamic growth in North America. The main drivers were
strategically important global customers, with whom Symrise generated a wide
range of new business in the first quarter. In EAME, sales rose by 3 % at local
currency. The emerging markets in Eastern Europe, Africa and the Middle East
were significant contributors here. In Latin America, sales were also up by 3 %
at local currency compared to the previous year. Asia/Pacific, on the other
hand, experienced a slow start to the year. At local currency, sales came in 1
% lower than in the previous year. This is primarily due to the weak demand in
the first two months, which showed considerable signs of improvement in March.
In the first quarter Symrise strengthened the growing business Consumer Health
by entering into an exclusive partnership with Indevex Biotech to focus on
joint research, as well as the development of new product concepts. With the
partnership, Symrise has secured access to a Scandinavian biotech network with
existing product partnerships.
EBITDA in the Flavor & Nutrition division remained stable compared to the prior-
year period and amounted to EUR 42 million (Q1 2011: EUR 42.2 million). Despite
moderate sales growth and cost impacts from higher raw material prices, the
EBITDA margin held strong at 20.3 % (Q1 2011: 21.3 %).
2012 Outlook: Sales Forecast Increased
Based on the positive economic developments in the first quarter, Symrise is
more confident for Fiscal Year 2012 than at the beginning of the year. If the
economy continues to improve the Company sees good opportunities to exceed the
expected market growth. Symrise expects additional impetus, particularly during
the second half of the year, once the expanded production capacities for
Menthol begin operation in Holzminden. Against this background, Symrise is
raising its sales forecast and is now targeting sales growth between 3 % and 5
% for the year. However, the European sovereign debt crisis continues to
represent an unsecure factor for both, the European and the global economy. In
addition, Symrise expects raw material prices to remain volatile in 2012.
Regardless, Symrise aims at sustainable, profitable growth and continues to
target an EBITDA margin of about 20 percent for the 2012 fiscal year.
Key Figures of the Group
|EUR MILLION | Q12011| Q1 2012|CHANGE IN|CHANGE IN|
| | | | %| %|
| | | | | AT LOCAL|
| | | | | CURRENCY|
| | | | | |
|SALES | 416.8| 432.6| 3.8| 2.0|
|EBITDA | 85.2| 87.0| 2| 0|
|EBITDA MARGIN IN % | 20.5| 20.1| | |
|EBIT | 64.4| 66.2| 3| 1|
|EBIT MARGIN IN % | 15.4| 15.3| | |
|NET INCOME FOR THE PERIOD | 41.1| 42.5| 3| |
|EARNINGS PER SHARE IN EUR | 0.35| 0.36| 3| |
|OPERATING CASH FLOW | 6.4| 19.7| | |
|SCENT & CARE
|SALES | 218.4| 224.9| 3.0| 1.1|
|EBITDA | 43.0| 44.8| 4| 3|
|EBITDA MARGIN IN % | 19.7| 19.9| | |
|
|FLAVOR & NUTRITION
|SALES | 198.4| 207.8| 4.7| 3.0|
|EBITDA | 42.2| 42.1| 0| -2|
|EBITDA MARGIN IN % | 21.3| 20.3| | |
| | DEC. 31, 2011| MARCH 31, 2012|
|BALANCE SHEET TOTAL | 2,098.2| 2.108.6|
|EQUITY RATIO IN % | 43.5| 45.1|
|NET DEBT (INCL. PENSION | | |
|PROVISIONS)/ EBITDA (RATIO) | 2.2| 2.2|
|EMPLOYEES* | 5,434| 5,478|
* Full Time Equivalent, not including apprentices and trainees
About Symrise:
Symrise is a global supplier of fragrances, flavorings, cosmetic active
ingredients, and raw materials as well as functional ingredients. Its clients
include manufacturers of perfumes, cosmetics, and foods, the pharmaceutical
industry and producers of nutritional supplements.
Its sales of EUR 1.58 billion in 2011 place Symrise among the top four in the
global flavors and fragrances market. Headquartered in Holzminden, Germany, the
company is represented in over 35 countries in Europe, 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. In doing so,
Symrise combines its insights into consumer trends with cutting-edge
technologies, focusing on innovative trend and lifestyle products that have
additional practical value for the consumer. Symrise - always inspiring more
www.symrise.com
Further inquiry note:
Media contact: Investor contact:
Bernhard Kott Tobias Erfurth
Phone: +49 (0)5531 90-1721 Phone: +49 (0)5531 90-1879
bernhard.kott@symrise.com tobias.erfurth@symrise.com
end of announcement euro adhoc
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company: Symrise AG
Mühlenfeldstraße 1
D-37603 Holzminden
phone: +49 (0) 5531/90-0
FAX: +49 (0) 5531/90-1649
mail: ir@symrise.com
WWW: http://www.symrise.com
sector: Chemicals
ISIN: DE000SYM9999
indexes: MDAX
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English
Original content of: Symrise AG, transmitted by news aktuell