Symrise increases sales and earnings in the third quarter

In the third quarter of 2009, Symrise AG improved its sales and earnings despite continued economic challenges. In a weak overall market, the Group increased third-quarter sales over the same period of 2008 by 5.6 percent at local currency, and by 4 percent on a pro forma basis. Both business divisions and all regions contributed to the growth. The EBITDA rose by 12 percent at local currency in the third quarter, benefiting decisively from the improved sales performance as well as from the first savings effects from the restructuring measures implemented in the first half of the year. In the first nine months of the year, the Group achieved an EBITDA margin, adjusted for restructuring expenses, of 19.7 percent.

Symrise’s Executive Committee expects the Group to grow faster than the market in the 2009 fiscal year. “Symrise remains fast-growing and profitable,” declared Dr. Heinz-Jürgen Bertram, CEO of Symrise AG . “For the year as a whole, we expect a sales growth of 2 percent at local currency. Symrise is benefiting from its strong innovative ability and from its strong market position in dynamically growing emerging markets. Moreover, we anticipate that we will achieve an EBITDA, adjusted for restructuring expenses, at the previous year’s level, will improve the adjusted earnings per share, and will continue to generate a strong cash flow. On the whole, Symrise fared very well in the difficult market situation of recent months and has good prospects of emerging from the crisis stronger than before.”

In the first nine months of the year, Symrise increased Group revenues by 2.8 percent, from EUR 1,009.5 million to 1,037.5 million. At local currency, sales rose by 1.3 percent compared to the same period of the previous year. South America proved to be one of the main growth drivers in the first three quarters. Symrise boosted its sales in this region by 19 percent (25 percent at local currency).

Acquisitions in the previous year made a decisive contribution to the sales growth of 23 percent in North America (15 percent at local currency). In the Asia/Pacific region, Group sales were up by 6 percent (0.5 percent at local currency). The EAME region, which in the past months had been most strongly affected by the weak economy and by destocking, showed signs of recovery with sales climbing by 2 percent at local currency in both Eastern and Western Europe in the third quarter. Due to the weak first half of the year, however, sales in this region were -7 percent (-6 percent at local currency) down on the sales achieved in the first nine months of 2008.