Symrise publishes interim half year figures

In the first six months of the current financial year Symrise posted an increase in Group revenues of approximately 2 percent (2.6 % at local currency) to EUR 811.8 million (previous year: EUR 797.5 million). The Asia/Pacific region exhibited the strongest growth followed by Latin America (+ 4 %, also at local currency) and EAME (+ 3 %, also at local currency), while North American sales declined 7 percent over the strong results of the previous year, primarily due to the slower economy and significant currency effects. At local currency, revenues declined by 2 percent. Emerging Markets did not continue their extraordinarily high growth rate of the previous year, but continued to grow above average in the same period (+ 4 %), which accounted for 46 percent of Group sales.

Whereas the flavour business continued to grow, the demand for fragrances declined. Earnings were affected by high raw material costs and negative currency effects. Nonetheless, Symrise achieved an EBITDA margin of 20 percent (previous year: 22.3 %). The primary contributors were persistent cost management and the conscious divestment of less profitable businesses. In absolute terms, earnings before interest, tax, depreciation and amortization (EBITDA) declined by 8.6 percent to EUR 162.5 million (previous year: EUR 177.7 million). 30 percent of Group sales were generated from business with major customers.

In the first half of 2011 Symrise temporarily built up inventory of raw materials in a move to cushion price increases and shortages of certain raw materials. The Group believes that increased inventory levels will give significantly more planning security in the second half of the year. Despite increased working capital requirements Symrise generated a positive cash flow from operating activities of EUR 34 million (previous year: EUR 74.7 million).

Flavour and nutrition

Flavour & Nutrition continued its growth path in the first half of 2011 with a 4 percent sales increase to EUR 402.3 million (previous year: EUR 385.6 million). It posted the largest sales increase of 8 percent (at local currency) in the EAME region (Asia/ Pacific: +7 %, Latin America: +3 %, North America: -6 %).

Beverage applications in particular developed positively as did the new application segment Consumer Health.