EANS-News: Symrise AG Increases Sales and EBITDA by 7 % in the First Half of the
Year
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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6-month report
Subtitle: EBITDA margin of 20 % despite ongoing high raw material prices
Share of sales from Emerging Markets up to 47 %
Earnings per share rise to 0.71
Outlook for the full year confirmed
Holzminden August 9, 2012 (euro adhoc) - Symrise AG benefited from a further
rising demand in both segments during the
second quarter of 2012. The Group thus increased sales by 7 % in the first half
of the year, to EUR 872 million (H1 2011: EUR 812 million). The dynamics in
Emerging Markets, especially Latin America, as well as positive developments in
North America played a particular role. Business with global key customers was
also a source of positive momentum. EBITDA increased by 7 % to EUR 174.0 million
(H1 2011: EUR 162.5 million) despite ongoing high raw material costs.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, commented: "We continued to gain
momentum in the second quarter and benefited from a considerable rise in demand
in both, the Emerging Markets and established markets. Once again, Symrise
achieved an EBITDA margin of 20 %. This is a notable achievement considering
the impacts from high raw material and energy prices as well as ramp-up costs
for our new menthol plant. Although many questions remain surrounding the
development of the eurozone, we expect further growth in the second half of the
year. We are well-positioned internationally and enjoy a broad customer base.
Additional growth is expected from our new menthol production plant which has
been operating since the end of June. We therefore confirm our raised outlook
from May and are aiming for sales growth at local currency between 3 % and 5 %
for the full year."
Symrise Enjoys Strong Second Quarter
Symrise generated sales of EUR 871.6 million in the first half of 2012 (H1 2011:
EUR 811.8 million). This represents an increase of 7 % (4 % at local currency).
This development was particularly driven by the second quarter when the Group
boosted sales by 11 % to EUR 438.9 million (Q2 2011: EUR 395.0 million).
North America performed especially well in the first half with sales up 19 %
(10 % at local currency). Latin America also posted disproportionately positive
growth with a sales increase of 18 % (18 % at local currency). Sales in the
Asia/Pacific region were up 11 % (4 % at local currency) while sales remained
stable in the EAME region despite economic uncertainties in Southern European
markets.
EBITDA Margin of 20.0 %
Symrise improved its earnings before interest, tax and depreciation (EBITDA) by
7 % in the first half to EUR 174 million (H1 2011: EUR 163 million). The cost
situation remained characterized by persistently high raw material and energy
costs. Ramp-up costs for the expansion of Symrise's menthol capacities in
Holzminden also had an effect in the first half. Despite these costs, the Group
managed to achieve an EBITDA margin of 20 % (H1 2011: 20 %) and kept
profitability at a sustainable high level.
Net income for the period rose by 8 % to EUR 84 million (H1 2011: EUR 77
million). Earnings per share increased by 6 cents to EUR 0.71 after EUR 0.65
last year.
Cash Flow from Operating Activities Nearly Doubles at EUR 62.5 Million
Cash flow from operating activities amounted to EUR 63 million, substantially
higher than in the previous year (H1 2011: EUR 34 million). The company has the
necessary liquidity and financial strength to fully implement the Group's
strategy. The ratio of net debt incl. pension provisions to EBITDA remained,
despite the distribution of dividends for 2011, nearly constant with last
year's period at 2.3.
Share of Sales from Emerging Markets Increases to 47 %
The Group's strong position in Emerging Markets led to an increase in sales for
these regions of 8 % at local currency. Thus, Symrise is growing nearly twice
as fast in Emerging Markets than the Group as a whole. The Emerging Markets in
Latin America were substantial growth drivers along with those in Eastern
Europe, Russia and the Middle East. Latin America also benefited from growth
initiatives implemented there. The share of Group sales generated in the
Emerging Markets increased to 47 % in the first half after amounting to 46 % in
the first half of 2011.
Above Average Growth with Global Customers
Symrise has a balanced portfolio of local, regional and global customers. The
first half of 2012 continued to deliver especially positive results in business
with internationally active key customers. Sales with this customer group
increased 11 % at local currency and therefore exceeded the overall growth of
the Group. Business with top 10 customers was especially strong in the Scent &
Care division with an increase of 13 % at local currency. Sales with major
customers rose 8 % at local currency in the Flavor & Nutrition division.
Symrise generated 32 % of its overall sales with international key customers in
the first half (H1 2011: 30 %).
Scent & Care Division
Scent & Care increased sales in the first six months of 2012 by 9 % (6 % at
local currency) to EUR 444 million (H1 2011: EUR 410 million). The application
areas Oral Care, Fragrances and Life Essentials were the top contributors to
this result, each posting double-digit growth rates.
With a 29 % jump in sales at local currency, Latin America was the strongest
growth driver in the division. The Oral Care business unit played a leading
role in this development with substantial growth in sales. In Fragrance, a
number of new businesses also made a notable positive impact. North America was
the second strongest region, generating sales growth of 9 %. Also in this
region, the Oral Care business unit was the clear growth driver posting strong
sales growth, particularly with key customers. Continuing uncertainties
regarding the sovereign debt crisis led to reserved sales performance in the
EAME region. Despite the positive impulses from the Emerging Markets in Africa
as well as solid growth in the Fine Fragrances and Personal Care application
areas, sales were down 4 % at local currency compared to the first half of
2011. The Asia/Pacific region saw sales up 7 % at local currency and generated
double-digit growth rates in the Household, Oral Care and Cosmetic Ingredients
application areas.
Scent & Care increased its EBITDA in the first half by 5 % to EUR 81 million (H1
2011: EUR 77 million) despite ramp-up costs for the expanded menthol production.
The EBITDA margin for the segment amounted to 18.2 % (H1 2011: 18.8 %).
Flavor & Nutrition Division
Flavor & Nutrition increased sales by 6 % in the first half to EUR 427 million
(H1 2011: EUR 402 million). At local currency, this corresponded to an increase
of 3 %. The division benefited particularly from its activities in the Emerging
Markets, favorable core-list positions and from additional new business gained
with regional and international customers.
Flavor & Nutrition achieved the strongest growth in North America with sales up
12 %. Every application area contributed to this positive development, with
sales increases in the high single-digit and double-digit ranges. Sales were up
3 % at local currency in the EAME region. The main growth driver was Russia
with a double-digit growth rate, while the sovereign debt crisis continued to
have a notable effect on Western European markets. Sales growth was restrained
in the Asia/Pacific region, up 1 %. In Latin America, Flavor & Nutrition
increased its sales by 2 % at local currency.
Flavor & Nutrition improved its EBITDA by 9 % in the first half to EUR 93
million (H1 2011: EUR 86 million). The EBITDA margin remained at an excellent
level with 21.8 % compared to 21.3 % in the prior-year period.
Outlook for the Full Year - Objectives Confirmed
Symrise remains confident of a good second half despite continuing
uncertainties surrounding the European sovereign debt crisis. The Group has a
balanced business: it is geographically well positioned and operates with two
nearly identically sized divisions; in addition it has a broad customer base.
Following the positive developments of the first half of 2012, Symrise confirms
its increased outlook from May and continues to aim for sales growth between 3
% and 5 %. Further growth is expected in both Emerging Markets as well as
industrialized nations although in Western Europe this is expected to be
reserved due to the sovereign debt crisis. Symrise also continues to focus on
its approach to realize sustainable, profitable growth and aims to achieve an
EBITDA margin of about 20 %, despite persistently high raw material and energy
prices.
Key Figures of the Group
EUR MILLION | |H1 2011 H1 2012 Change % Change lc %
Sales | |811.8 | |871.6 | |7.4 | |4.4 |
EBITDA | |162.5 | |174.0 | |7 | |4 |
EBITDA margin in % | |20.0 | |20.0 | | | | |
EBIT | |120.7 | |130.8 | |8 | |5 |
EBIT margin in % | |14.9 | |15.0 | | | | |
Net income for the period | |77.4 | |83.5 | |8 | | |
Earnings / share in EUR | |0.65 | |0.71 | |9 | | |
Operating cash flow | |34.0 | |62.5 | | | | |
Scent&Care
Sales | |409.5 | |444.4 | |8.5 | |5.5 |
EBITDA | |76.9 | |81.0 | |5 | |3 |
EBITDA margin in % | |18.8 | |18.2 | | | | |
Flavor&Nutrition
Sales | |402.3 | |427.2 | |6.2 | |3.2 |
EBITDA | |85.6 | |93.0 | |9 | |5 |
EBITDA margin in % | |21.3 | |21.8 | | | | |
| |Dec. 31, | |June 30, |
| |2011 | |2012 |
Balance sheet total EUR million | |2,098.2 | |2,138.3
Equity ratio in % | |43.5 | |43.8 |
Net debt (incl. pension provisions)/EBITDA ratio | |2.2 | |2.3 |
Employees (FTE) | |5,434 | |5,552 |
FTE = Full Time Equivalent, not including apprentices and trainees
lc = local currency
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:
Pressekontakt
Bernhard Kott
Tel. +49 (0)5531 90-1721
bernhard.kott@symrise.com
Investorenkontakt
Tobias Erfurth
Tel. +49 (0)5531 90-1879
tobias.erfurth@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