EANS-News: Symrise Achieves All-Time High in Sales and Earnings in 2012
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annual result
Holzminden, March 12, 2013 (euro adhoc) - · Sales up by 10 % to EUR 1.735
billion
· EBITDA increases by 7 % to EUR 339 million
· Net income reaches all-time high of EUR 158 million
· Proposed dividend increase to EUR 0.65
· Symrise communicates long-term targets through 2020 for the first time
Symrise AG achieved the highest sales and earnings figures in its company
history in Fiscal Year 2012. The Group increased sales to EUR 1,735 million
(2011: EUR 1,584 million); this represents an increase by 10 % (at local
currency: 6 %) compared to the previous year. Positive developments in both
divisions contributed to this result. Of the established markets, North America
showed the most dynamic growth. Among the Emerging Markets - whose share of
sales rose from 46 % to 48 % - Latin America posted the strongest growth.
Symrise remained highly profitable despite increased raw materials prices and
start-up costs for the doubling of its menthol capacities. EBITDA increased by 7
% to EUR 339 million (2011: EUR 316 million) and the EBITDA margin reached its
targeted level of about 20 %.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: 'For Symrise, 2012 was a new
record year. We increased sales by 10 % and thus exceeded both, market growth as
well as our own targets. Symrise saw significant gains - both in Emerging
Markets as well as in established markets such as North America. With a strong
increase in EBITDA, we kept our profitability at a high level, despite increased
raw material costs and one-off expenses. Earnings per share improved to EUR
1.33. The Executive and Supervisory Boards will propose increasing the dividend
for the Fiscal Year 2012 to EUR 0.65 at the Annual General Meeting.'
Dr. Bertram continued: 'In view of our balanced positioning with customer
groups, products and regions as well as our investments in rapidly expanding
business areas, we consider ourselves well equipped for 2013. Once again, we aim
to grow faster than the market for fragrances and flavors. For the first time,
we have also formulated long-term targets, which underscore our strategic
commitment, which aims at sustainable, profitable growth: By 2020 we want to
increase sales by EUR 1 billion and achieve an EBITDA of more than EUR 500
million.'
Sales Growth of 10 %
Symrise increased Group sales in 2012 by 10 % to EUR 1,735 million (2011: EUR
1,584 million). At local currency, the increase was 6 %. As a result, Symrise
managed to surpass its raised forecast from May 2012, which targeted at a sales
growth between 3 % and 5 %.
The Group's strongest growth was realized in Latin America with a 20 % increase
in sales (21 % at local currency). Among the established markets, North America
proved to be the most dynamic and was our second strongest region, posting an
increase of 17 % (at local currency: 8 %). In the Asia/Pacific region, Symrise
grew by 15 % (at local currency: 9 %). In the EAME region, weak economic
conditions and falling consumer demand hindered growth, particularly in Southern
Europe. Positive developments in Eastern Europe, Russia and Africa, however,
were able to counteract these effects. Sales growth saw a more moderate increase
at 2 % (at local currency: 1 %).
EBITDA Rises by 7 % to EUR 339 Million
Despite higher raw material prices and one-off expenses, such as the start-up
costs for doubling the menthol production, Symrise managed to further increase
its earnings. Earnings before interest, taxes, depreciation and amortization
(EBITDA) grew by 7 % to EUR 339 million (2011: EUR 316 million). The EBITDA
margin of 19.5 % (2011: 20.0 %) was within the targeted range of around 20 %.
Symrise was once again among the most profitable companies in the industry in
2012.
Net income was up by 7 % and amounted to EUR 158 million (2011: EUR 147
million), which is also a new all-time high. Earnings per share improved from
EUR 1.24 in the previous year to EUR 1.33. In view of these positive
developments, the Executive Board and Supervisory Board will put forward a
proposal at the Annual General Meeting to be held on May 14, 2013, to increase
the dividend to EUR 0.65 (2012: EUR 0.62) for the past fiscal year.
Cash Flow from Operating Activities up on Last Year
Cash flow from operating activities amounted to EUR 219.5 million, about EUR
18.6 million more than in the prior year (2011: EUR 200.9 million). A higher
operating result was the leading contributor to this development.
Net debt including pension provisions totaled EUR 812 million as of the
reporting date (December 31, 2011: EUR 772 million). The increase compared to
2011 is mainly due to a rise in pension provisions resulting from a change to
the discount rate due to the currently low interest rate levels. The ratio of
net debt including pension provisions to EBITDA amounted to 2.4 (December 31,
2011: 2.4) and was thus within the targeted range of 2.0 to 2.5.
Share of Sales from Emerging Markets Increases to 48 %
Symrise continued to expand its market position in the Emerging Markets during
the past fiscal year. Compared to the previous year, sales in these regions grew
by 11 % at local currency and were therefore notably higher than the Group's
average sales growth. The Emerging Markets accounted for 48 % of Group sales in
2012 (2011: 46 %).
Balanced Customer Portfolio
Symrise's customer portfolio is divided equally between global, regional and
local customers. The Group therefore has a very balanced customer base, which
contributes to a robust business development. The company places a strategic
focus on gaining core list positions at large, internationally operating
consumer goods and food manufacturers. In the past fiscal year, Symrise
increased its share of sales with global customers by 10 % at local currency.
The activities with this particular customer group made up 32 % of Group sales.
Scent & Care Division
With sales of EUR 883 million (2011: EUR 801 million) the Scent & Care division
exceeded its previous year's figure by 10 %. At local currency, this corresponds
to a growth of 7 %.
The division posted positive developments in demand for every business unit,
with the application areas Fragrances, Oral Care and Life Essentials leading the
way. Additional growth impulses arose from the operations of the expanded
menthol production plant in Holzminden.
The strongest regional growth in the division was seen in Latin America. Here,
sales at local currency increased by 30 %. Rising consumer demand in the perfume
and personal care segments were the top drivers behind this development. The
second-highest growth came from the Asia/Pacific region, where every business
unit contributed to the region's sales increase of 9 % at local currency. North
America also developed positively. Sales were up by 8 % at local currency in the
region, with Life Essentials and Fine Fragrances providing most of the growth.
In EAME, sales at local currency declined by 2 %. The continuing positive
developments in Eastern Europe, particularly in the Fragrances and Aroma
Molecules business units, were not able to completely counteract the weaker
developments seen in Southern Europe.
Scent & Care increased its EBITDA by 2 % to EUR 161 million (2011: EUR 158
million). The EBITDA margin amounted to 18.2 % compared to 19.7 % in 2011.
Flavor & Nutrition Division
Flavor & Nutrition generated sales of EUR 852 million in the 2012 fiscal year
(2011: EUR 782 million). This corresponds to an increase of 9 % (6 % at local
currency).
The division grew in all application areas, with savory and beverage
applications as well as sweets generating particularly high growth rates. Strong
contributions also came from activities in Emerging Markets.
The highest growth rate was seen in Asia/Pacific and North America, with each
posting an increase in sales of 8 % at local currency. The Chinese market played
a particularly key role for the positive developments seen in Asia/Pacific.
Symrise has been present there for 30 years and plans to expand its activities
in 2013 and 2014 with further investments. Sales growth in North America was
mainly attributable to new business throughout all application areas. Latin
America posted an increase of 7 % at local currency and generated major gains
with both, global and local customers. In the EAME region, sales were up by 4 %
at local currency. The region especially benefited from higher demand in Eastern
Europe, Africa and the Gulf region.
EBITDA increased by 12 % to EUR 178 million in the Flavor & Nutrition division
(2011: EUR 158 million). The EBITDA margin increased from 20.2 % in 2011 to 20.9
%.
Long-Term Targets 2020: Focus on Sustainable, Profitable Growth
For the first time, Symrise has formulated long-term targets for its business
activities, which apply through the end of Fiscal Year 2020. The Group aims to
increase sales by more than EUR 1 billion by 2020. This corresponds to an
average annual sales growth (CAGR) of 5 to 7 %. Symrise continues to remain
committed to profitable growth and is targeting an EBITDA of more than EUR 500
million by 2020. The EBITDA margin should develop within the range of 19 to 22
%.
To achieve these goals, Symrise is capitalizing on its proven growth strategy,
which is based on three pillars. The first pillar relates to its global
positioning and the expansion of its activities, particularly in the dynamic
Emerging Markets, which should account for about two-thirds of Group sales by
2020. The second pillar targets efficiency and includes measures for the
continual optimization of processes and the portfolio, as well as efficient cost
management. The third pillar focuses on maintaining a unique profile with a
diversified product portfolio, which will be expanded through accelerated
innovation.
In addition, Symrise continues to combine profitable growth with sustainability.
The Group thus aims to procure its most important raw materials from sustainable
sources by 2020. In addition, Symrise aims at further reducing its energy and
water consumption, CO2 emissions and waste volumes by one third each.
Positive Outlook for the 2013 Fiscal Year
For the international flavors and fragrances market, growth has been estimated
of 2 to 3 % for the current financial year. Symrise aims at outperforming the
market in 2013, too. The Group expects to grow in both, industrialized nations
and Emerging Markets in 2013. The traditional fragrance and flavor business will
contribute as will the comparably new, dynamic market segments Life Essentials
and Consumer Health. The Group is expecting a generally advantageous economic
environment, although Europe, in particular, will continue to be affected by
uncertainties arising from the sovereign debt crisis. Symrise anticipates raw
material prices to remain at a high level with short-term volatility in 2013.
Key Figures of the Group
Change in %
at local
in Mio. EUR 2011 2012 Change in % currency
Sales 1,583.6 1,734.9 9,6 6,4
EBITDA 315.9 338.9 7 4
EBITDA margin in % 20.0 19.5
EBIT 234.4 252.6 8 4
EBIT margin in % 14.8 14.6
Net income 146.5 157.5 7
Earnings per
share in EUR 1.24 1.33 7
Dividend per
share in EUR 0.62 0.65(1) 5
Balance
sheet total
(as of
Dec 31) 2,120.3(2) 2,151.9 1
Equity ratio
(as of
Dec 31) in % 40.9 40.7
Investments 67.3 70.3
Net debt
(incl.
pension
provisions)
/EBITDA (as
of Dec 31) ratio 2.4(2) 2.4
Operating
cash flow 200.9 219.5 9
Employees
(as of
Dec 31) FTE(3) 5,434 5,669 4
Scent & Care
Sales 801.4 882.8 10.2 7.1
EBITDA 157.6 161.1
EBITDA margin in % 19.7 18.2
Flavor & Nutrition
Sales 782.2 852.1 8.9 5.7
EBITDA 158.3 177.8
EBITDA margin in % 20.2 20.9
(1) proposal
(2) previous year's figures have been adjusted as a result of changes to
accounting policies
(3) not including apprentices and trainees; FTE = Full Time Equivalent
Pictures are available for download from the Company Website/News& Media/
http://www.symrise.com/en/news-media/press-images/management.html
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, food and beverages, the
pharmaceutical industry and producers of nutritional supplements.
Its sales of EUR 1.735 billion in 2012 place Symrise among the top four
companies in the global flavors and fragrances market. Headquartered in
Holzminden, Germany, the Group is represented in over 35 countries in Europe,
Africa, the Middle East, 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. Economic success
and corporate responsibility are inextricably linked as part of this process.
Symrise thus takes sustainability into account in every part of its corporate
strategy. The company was awarded the German Sustainability Award in 2012.
www.symrise.com
Contact Media:
Bernhard Kott
Phone: +49 (0)5531 90-1721
bernhard.kott@symrise.com
Contact Investors:
Tobias Erfurth
Phone: +49 (0)5531 90-1879
tobias.erfurth@symrise.com
Further inquiry note:
Symrise AG
Investor Relations
Tobias Erfurth
ir@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