EANS-News: Symrise AG
Sales and Earnings up 9 % in the First Nine Months
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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quarterly report
Holzminden (euro adhoc) - Emerging Markets account for 48 % of sales for the
first time
- EBITDA margin of 20 % despite persistently high raw material prices and
start-up costs for menthol production
- Earnings per share rise to EUR 1.07
In the third quarter, Symrise AG successfully built on its dynamic performance
from the first half of the year. In the first nine months of 2012, the Group
generated sales of EUR 1,320 million (9M 2011: EUR 1,206 million), exceeding the
previous year's figure by 9 % (6 % at local currency). Both divisions provided
strong impetus for growth. Symrise experienced above-average growth in the
emerging markets, with Latin America performing particularly well. The Group
also recorded considerable sales increases in Asia and North America. Symrise
remained highly profitable despite high raw materials prices and start-up costs
for its new menthol production plant. The Group increased its EBITDA by 9 % to
EUR 264 million (9M 2011: EUR 243 million) and achieved an EBITDA margin of 20
%.
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: "We
achieved considerable increases in sales and earnings throughout the Group in
the first nine months of this year. The emerging markets provided particularly
strong impetus for growth and accounted for 48 % of sales for the very first
time. In terms of earnings, we coped well with a number of anticipated one-off
expenses. For the remaining weeks of 2012, we continue to remain confident,
although the sovereign debt crisis is having a growing impact on both, the
European and also the global economy. However, with our balanced portfolio of
customer groups and products, as well as our regional presence, we are, in an
excellent position to make good progress even during economically weaker
phases. We therefore confirm our targets for the fiscal year of 2012. We will
continue to pursue our strategy which aims at sustainable, profitable growth."
Strong Growth in Group Sales
Symrise increased its sales by 9 % to EUR 1,320 million in the first nine months
of 2012 (9M 2011: EUR 1,206 million). Both divisions significantly contributed
towards this increase. In the third quarter, the Group succeeded in increasing
sales by 14 % (9 % at local currency) to EUR 448 million, compared to EUR 395
million in the same quarter of the previous year.
With a 20 % sales increase (21 % at local currency) Latin America provided the
Group's strongest growth in the reporting period. Developments in the
Asia/Pacific region were also positive, allowing Symrise to boost its sales
there by 15 % (8 % at local currency). In North America sales were up 19 % (8
% at local currency). Economic caution influenced sales in the Western European
countries of the EAME region as a result of the European sovereign debt crisis.
However, positive impetus came from Eastern Europe, Russia and Africa. Compared
to the prior year period, sales were slightly up by 1 % (1 % at local
currency).
EBITDA Margin of 20 %
Symrise increased its EBITDA by 9 % in the first nine months to EUR 264 million
(9M 2011: EUR 243 million). Raw material costs remained on an overall high
level. As expected, the Group also had start-up costs for the new menthol
production plant in Holzminden, Despite these factors, Symrise successfully
maintained its profitability and posted an EBITDA margin of 20 % for the
reporting period (9M 2011: 20.1 %).
Net income rose by 7 % compared to the first nine months of 2012 to EUR 126
million (9M 2011: EUR 117 million). Earnings per share rose by 8 cents to EUR
1.07 (9M 2011: EUR 0.99).
Cash Flow from Operating Activities above Last Year's Level
Due to positive business developments the cash flow from operating activities
increased from EUR 130 million in the previous year to EUR 138 million in the
reporting period. The Group has the necessary liquidity and financial strength
to fully implement its strategy. The ratio of net debt (incl. pension
provisions) to EBITDA fell to 2.1 (December 31, 2011: 2.2).
Sales Share from Emerging Markets Reaches a New High of 48 %
During the first three quarters, Symrise continued to expand its strong market
position in the emerging markets. With a sales increase of 11 % at local
currency, Symrise outperformed the Group's average growth rate in these
regions. The company experienced particularly strong demand in Latin America,
China, Russia and the Middle East. The share of sales generated in the emerging
markets increased by two percentage points compared to the first nine months of
2011 and reached the 48 % mark for the first time (9M 2011: 46 %).
Strong Growth with Large Global Customers
Symrise has a balanced portfolio of small-scale local, medium-sized regional
and large global customers. Global producers of food and consumer goods form a
strategic focal point within the customer groups. Symrise increased its sales
with its global customers by 11 % at local currency, outperforming the Group's
total growth rate. Both divisions further expanded their business with global
customers. Scent & Care reported a 12 % increase in sales at local currency.
Flavor & Nutrition grew sales with global customers by 9 %. Overall, business
with major international customers accounted for 32 % of sales in the reporting
period (9M 2011: 31 %).
Scent & Care
The Scent & Care division posted sales of EUR 671 million for the first nine
months (9M 2011: EUR 610 million) - a 10 % increase on the previous year's
figure. At local currency, sales were up 7 %. Scent & Care particularly
continued rapid growth in the Life Essentials, Oral Care and Fine Fragrances
application areas.
Latin America was by far the strongest region, realizing a 32 % sales increase
at local currency. Scent & Care posted double-digit growth rates in all
application areas. North America was the second strongest region, generating a
sales growth of 9 % at local currency. Business with global customers was
primarily responsible for driving this growth. Sales in Asia/Pacific rose by 7
% at local currency compared to the prior year period. This growth was mainly
driven by high demand in Household, Oral Care and Cosmetic Ingredients. Despite
positive impetus from Africa and Eastern Europe sales fell by 3 % at local
currency in the EAME region due to the European sovereign debt crisis.
Scent & Care increased its EBITDA in the reporting period by 5 % to EUR 124
million (9M 2011: EUR 117 million). Despite start-up costs for the new menthol
plant and high raw materials costs, the EBITDA margin remained on a good level
at 18.4 % (9M 2011: 19.2 %).
Flavor & Nutrition
Flavor & Nutrition grew its sales by 9 % in the first nine months to EUR 649
million (9M 2011: EUR 597 million). At local currency, this corresponded to a
growth of 5 %. The division was able to boost its sales in all regions.
The Asia/Pacific and North America regions were responsible for the strongest
growth in the division's sales (8 % each at local currency). Beverages and
savory applications, in particular, generated pleasing growth in the
Asia/Pacific region. In North America, Flavor & Nutrition recorded growth in
the upper single-digit to double-digit percentage range in all application
areas. In Latin America, Flavor & Nutrition expanded its sales by 5 % at local
currency, with Brazil, Argentina and Chile showing the strongest growth. Sales
climbed by 4 % at local currency in EAME, driven primarily by substantial
double-digit growth rates in Russia. By contrast, demand in Western European
markets was noticeably weak due to the sovereign debt crisis.
Flavor & Nutrition improved its EBITDA by 12 % in the first nine months to
EUR 141 million (9M 2011: EUR 125 million). At 21.7 %, the EBITDA margin
exceeded the prior year figure (9M 2011: 21.0 %).
Expectations for the Full Year Confirmed
In the third quarter, an economic slowdown emerged in many economic regions
which will continue in the fourth quarter. Despite this current uncertainty,
Symrise is confident to reach its targets for the full year. The Group aims at
a sales growth of between 3 % and 5 % at local currency and at an EBITDA margin
of around 20 %. Symrise has two strong divisions, a balanced customer base, an
innovative and diversified product portfolio and is geographically very well
diversified. This places the Group in a very good position to continue its
sustainable growth.
KEY FIGURES OF THE GROUP
EUR MILLION 9M 2011 9M 2012 CHANGE IN % CHANGE IN %
at local
currency
Sales 1,206.3 1,319.6 9.4 5.9
EBITDA 242.6 264.4 9 6
EBITDA margin in % 20.1 20.0
EBIT 182.1 200.2 10 6
EBIT margin in % 15.1 15.2
Net income for the period 117.4 125.9 7
Earnings per share in EUR 0.99 1.07 7
Operative cash flow 130.1 138.0
Scent & Care
Sales 609.7 670.6 10.0 6.5
EBITDA 117.3 123.5 5 3
EBITDA margin in % 19.2 18.4
Flavor?&? Nutrition
Sales 596.6 649.0 8.8 5.2
EBITDA 125.3 140.9 12 8
EBITDA margin in % 21.0 21.7
DEC. 31, 2011 SEP. 30, 2012
Balance sheet total EUR million 2,098.2 2,158.1
Equity ratio in % 43.5 45.2
Net debt (incl. pension provisions)/
EBITDA ratio 2.2 2.1
Employees (FTE 1) 5,434 5,621
1 FTE = Full Time Equivalent, not including apperentices and trainees
Press Contact:
Bernhard Kott
Phone. +49 (0)5531 90-1721
bernhard.kott@symrise.com
Investor Contact:
Tobias Erfurth
Phone. +49 (0)5531 90-1879
tobias.erfurth@symrise.com
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 EUR1.584 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:
Symrise AG
Investor Relations
Tobias Erfurth
ir@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