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EANS-News: Symrise AG
Symrise significantly increases sales and earnings
Â• Group sales grow 13.2 % at local currency Â• Growth across all divisions and regions Â• EBITDA rises 42 % Â– EBITDA margin reaches 21.3 % Â• Net income nearly doubles to Â€ 40.4 million
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Subtitle: Â• Group sales grow 13.2 % at local currency Â• Growth across all divisions and regions Â• EBITDA rises 42 % Â– EBITDA margin reaches 21.3 % Â• Net income nearly doubles to Â€ 40.4 million
Holzminden May 4, 2010 (euro adhoc) - Symrise AG has significantly increased sales and earnings in the first quarter of 2010. In an improving market environment the company saw sales at local currency grow 13.2 %, or 12.8 % at actual rates. Symrise grew across all divisions and regions, profiting from a robust rise in demand as well as the increasing normalization of order patterns and stock-keeping on the part of many customers. Group EBITDA rose by 42 % to EUR 83.3 million. At 21.3 % the EBITDA margin significantly exceeded the level of previous quarters. The positive sales development as well as the effects of the restructuring measures implemented in 2009 contributed considerably to the improvement in earnings.
Dr. Heinz-JÃ¼rgen Bertram, Chief Executive Officer of Symrise AG, said: "The clearly visible recovery of the market during the second half of 2009 continued into the first quarter. Symrise took advantage of the noticeable increase in customer demand to get off to a successful start in the 2010 financial year. The strong position we enjoy with respect to major customers and robustly growing emerging markets is again reflected in our above-average rate of growth. We are also pleased about the very positive development of markets in both Western and Eastern Europe. The sharp jump in earnings confirms that our company is in excellent shape."
With respect to the coming quarters Bertram added: "The development of busi-ness during the first quarter makes us confident that we will be able to meet our objectives for the current financial year. We want to continue to grow faster than the market as a whole and achieve an EBITDA margin of more than 20 %. Our strategic focus will be on the further enhancement of our unique profile in the business units Care and Nutrition."
Strong sales growth in all regions
In the first quarter Symrise saw Group sales at local currency grow by 13.2 % to EUR 392.5 million (previous year: EUR 346.7 million) and by 12.8 % at actual rates. The growth rate of 15.4 % at local currency in emerging markets again ex-ceeded the figure for the Group as a whole. The share of total sales generated in emerging markets thus rose one percentage point to 44 %. Symrise also be-nefited from a recovery of the mature markets, namely Western Europe and the USA.
The strongest growth in sales of 18 % (17 % at local currency) was posted in the Asia/Pacific region. The EAME region, which was the hardest hit by the economic crisis in 2009, showed noticeable signs of recovery in the first quarter. Sales rose 15 % (14 % at local currency). The North American market also experienced positive effects from the improved market conditions and in-creased sales by 6 % and by a strong 13 % at local currency. Latin America was less affected by the economic crisis in 2009. Here sales rose 7 % (4 % at local currency) in the first quarter over the already high figures for the previous year.
Sales with major customers grew 13 %
Sales with the ten largest customers rose 13 % at local currency. Symrise thus generated 30 % of Group sales with this strategically important customer group. Business with major customers in the Flavor & Nutrition division developed es-pecially dynamic and sales for this customer group rose 18 % at local currency. In the Scent & Care division the 10 % increase of sales with the ten largest customers was mainly due to the recovery in the application areas Fine Fragrance and the luxury segment of Personal Care. Both divisions continue to enjoy a strong position on core lists and were able to win additional projects in the first quarter.
Net earnings for the period nearly doubled to EUR 40.4 million
The robust sales increases in all regions and business units, combined with the effects of the restructuring measures implemented in 2009, contributed signifi-cantly to the earnings development of Symrise in the first quarter. A decline in the prices for raw materials in certain areas, as well as strict cost management throughout the Group also had a noticeably positive effect.
Earnings before interest, taxes and depreciation (EBITDA) rose in the first quar-ter by 42 % to EUR 83.3 million. The EBITDA margin of 21.3 % was clearly higher than the figure for the first quarter of the previous year (16.9 %). Net income for the period nearly doubled from EUR 20.9 million to EUR 40.4 million. This corresponds to earnings per share of EUR 0.34 following EUR 0.18 for the previous year.
Solid financial situation
Operating cash flow in the first quarter was EUR 17.6 million (previous year: EUR 45.0 million) and reflects the increase in working capital resulting from the sharp growth in sales. Symrise continues to have a solid financial basis. Net debt (incl. pension provisions) amounted to EUR 786 million (31 Dec. 2009: EUR 773 million) at the end of the first quarter. Symrise reduced the ratio of net debt incl. pension provisions to EBITDA from 3.1 at the end of 2009 to 2.9 as of March 31, 2010.
Scent & Care - Double-digit growth and higher profitability
The Scent & Care division, and especially the application area Fine Fragrance and the luxury segment of Personal Care, benefited noticeably from the im-provement of the economy. These business areas suffered from a decline in consumer spending last year. The application areas Household, Aroma Molecules and Cosmetic Ingredients also performed very well. The Scent & Care division also profited from the launch of new products including those in the cosmetics area.
Scent & Care enjoyed double-digit growth rates in the regions EAME, North America and Asia/Pacific. With 20 % sales growth at local currency, EAME posted the largest increase in sales in the division. Sales in Latin America grew only 1 % over the very strong first quarter of 2009.
In the first quarter Scent & Care posted sales of EUR 204.8 million (previous year: EUR 179.8 million) for a growth rate of 13.9 % (14.1 % at local currency).The EBITDA rose by an impressive 53 % to EUR 41.1 million (previous year: EUR 26.9 million). The EBITDA margin of 20.1 % (previous year: 15.0 %) achieved a high level.
Flavor & Nutrition - EBITDA margin increased to 22.7 %
Flavor & Nutrition also got off to a successful start in the 2010 financial year. The division benefited from the recovery of global markets and posted above-average growth in the application areas Beverages and Sweet. Sales rose 22 % at local currency in the Asia/Pacific region. In North America major customers were primarily responsible for the growth in sales of 16 %. The regions EAME and Latin America posted strong single-digit growth rates.
The application area Consumer Health, which was launched in the fourth quar-ter and specializes in functional ingredients for food substitutes as well as flavor solutions for pharmaceutical products, developed well and increased sales by 26 % at local currency.
During the reporting period Flavor & Nutrition saw sales rise 12 % (12 % at local currency) to EUR 186.2 million (previous year: EUR 166.9 million) with an increase in EBITDA from EUR 31.8 million to EUR 42.2 million. The EBITDA margin rose to 22.7 % (previous year: 19.0 %).
EUR million Q1 2009 Q1 2010 Change in% Change in % at local currency Sales 346.7 391.0 12.8 13.2 EBITDA 58.7 83.3 42 49 EBITDA margin in % 16.9 21.3 - - EBIT 38.1 62.5 64 76 EBIT margin in % 11.0 16.0 - - Net income for the period 20.9 40.4 93 Earnings per share in EUR 0.18 0.34 93 Operating cash flow 45.0 17.6 DIVISONS Scent & Care Sales 179.8 204.8 13.9 14.1 EBITDA 26.9 41.1 53 60 EBITDA margin in % 15.0 20.1 - - Flavor & Nutrition Sales 166.9 186.2 11.6 12.3 EBITDA 31.8 42.2 33 39 EBITDA margin in % 19.0 22.7 - - 31.12.09 31.03.10 Balance sheet total 1,895.2 1,981.0 Capital ratio 36.4 38.4 Net debt(incl. pension provisions)/EBITDA ratio 3.1 2.9 Employees / FTEÂ¹ 4,954 5,190
Â¹ Not including apprentices and trainees, FTE = full time equivalent
Symrise is a global supplier of fragrances and flavorings while also manufacturing raw materials and active ingredients for the perfume, cosmetics and food industries.
Its sales of EUR 1.36 billion in 2009 place the company among the top four in the international flavors and fragrances market. Headquartered in Holzminden, Germany, Symrise is represented in over 35 countries in Europe, Asia, the United States and South America.
Used by manufacturers of perfumes, cosmetics and foods, our products are an inseparable part of daily life. At Symrise we combine an awareness of consumer trends with cutting-edge technologies, focusing on innovative fashion and lifestyle products that have additional practical value for the consumer. Symrise - always inspiring moreÂ… www.symrise.com
Press Contact: Investor Contact: Bernhard Kott Dr. Andrea Rolvering Tel. +49 (0)5531 90-1721 Tel. +49 (0)69 75 93 75 94 email@example.com firstname.lastname@example.org
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