Symrise reports nine-months results

Symrise expects to achieve an organic growth rate of more than 8 percent at local currency for the full year 2010 even though growth has slowed down slightly in the third quarter, as expected. Assuming that raw material prices will rise moderately and will only have a minor impact on manufacturing costs, the company continues to aim at an EBITDA margin of more than 20 percent. The management also confirms the objective of further reducing the ratio of net debt (incl. pension provisions) to EBITDA to a level of around 2.5.

In the first three quarters of 2010 Symrise increased Group sales by 16.4 percent (12.4 percent at local currency) from € 1,037.5 million to € 1,207.7 million. The Group enjoyed strong demand in established as well as in emerging markets.

The Asia/Pacific region was the most important growth engine with an increase in sales of 23 percent (13 percent at local currency). All application areas performed strongly here. Latin America accounted for the second-highest growth rate of 19 percent (13 percent at local currency) despite the strong performance in the corresponding period of the previous year. Group sales in North America rose by 17 percent (13 percent at local currency) and benefited primarily from the strong demand in Fine Fragrances and Household. In the EAME region, which had suffered the most from the economic crisis in the previous year, sales grew significantly by 13 percent (12 percent at local currency) due to, among others, the strong demand in Life Essentials as well as in Middle East and Africa.

The Flavor & Nutrition division also enjoyed high demand in all application areas with a particularly strong development in Sweets and Beverages.

Business developed most dynamically in Latin America. Flavor & Nutrition achieved a 15 percent increase in sales (at local currency), which was particularly driven by strong business with international and local key customers. The Asia/Pacific region posted the second-highest increase in sales of 13 percent (at local currency) primarily due to the high demand in Beverages. Both, North America and the EAME region posted a 9 percent growth in sales (at local currency). Products from the application areas Sweet and Savory were the primary growth engines in North America. Symrise also concluded new supplier contracts for vanilla flavors and seasonings in North America. In the EAME region, Flavor & Nutrition benefited mainly from the above-average growth rate for soft drinks and alcoholic beverages, among others from an increasing demand for mixed beer beverages.