Symrise AG saw a successful start into the 2024 fiscal year. Supported by strong demand and the company’s solid positioning, Symrise increased sales in its reporting currency by 5 % to € 1,291.6 million (Q1 2023: € 1,230.2 million). The organic growth of 10.9 % resulted primarily from higher volumes.
Dr. Jean-Yves Parisot, Chief Executive Officer of Symrise AG: “As the new CEO, I am especially pleased that Symrise has been able to build on last year’s good business development. Despite the sustained volatility in our markets, we are very optimistic for the months ahead and expect robust demand. Our diversified portfolio, our innovative offers and global positioning give us the necessary strength to continue leveraging our growth potential and thus create sustainable value for our customers and ourselves. We are on course to achieve our targets for the current year and our long-term targets through to 2028 as communicated.”
Scent & Care: High demand for fragrances and cosmetic ingredients
Sales of Scent & Care, the business with fragrance applications, aroma chemicals and cosmetic ingredients, increased by 13.7 % year on year to € 516.4 million
(Q1 2023: € 454.0 million). In organic terms, sales rose by 16.9 %.
In the Fragrance division, growth remained dynamic in the luxury segment. The Fine Fragrance business unit benefited from this, recording high double-digit percentage growth compared to the same quarter the previous year. Sales of the Consumer Fragrance business unit also grew by a double-digit percentage, driven by body care and household products.
The Aroma Molecules division likewise posted double-digit growth in the first quarter. Last year, the production shutdown at Colonels Island in the USA, the difficult market environment and high customer inventories led to a decline in sales volumes. The picture has changed in the first three months of the new fiscal year. There was strong demand for all product groups, including menthol, terpenes and specialty aroma chemicals.
In the first quarter of the current year, sales in the Cosmetic Ingredients division developed at the customary strong pace with double-digit percentage organic sales growth. The main drivers of this growth were the EAME (Europe, Africa, Middle East) and Latin America regions. The Sun Protection and Micro Protection business units in particular saw strong gains.
Taste, Nutrition & Health: Substantial growth in applications for savory products and pet food
The Taste, Nutrition & Health segment, in which Symrise consolidates flavor solutions for food and beverages, pet food and healthy nutrition, grew sales organically by 7.5 %. Due to negative currency effects of € 55.1 million, sales in the reporting currency dipped by 0.1 % to remain almost constant at € 775.2 million (Q1 2023:
€ 776.1 million). The Latin America and EAME regions were the growth drivers.
The Food & Beverage division with its Beverages, Sweet and Savory business units achieved medium single-digit percentage growth rates. Out of it, Savory product applications posted a double-digit growth.
The Pet Food division also saw double-digit percentage growth rates. The strongest growth momentum came from the Latin America and Asia/Pacific regions. The addition of capacities in growth markets is continuing and will provide the foundation for further international business expansion.
Symrise reaffirms growth and profitability targets
Symrise reaffirms its long-term growth and profitability targets for 2024. The company continues to expect that it will grow faster than the relevant market, for which long-term growth of around 3 % to 4 % is forecasted. The company’s long-term organic growth expectation is unchanged at 5 % to 7 % (CAGR). By the end of 2028, Symrise is seeking to achieve sales of € 7.5 billion to € 8.0 billion.
Symrise has already implemented a series of measures aimed at increasing profitability, including an efficiency program with strict company-wide cost management. Assuming that raw material costs remain largely stable, the company is anticipating an EBITDA margin of around 20 % in 2024. In the medium term, Symrise is aiming to achieve an EBITDA margin in the range of 20 % to 23 %. A Business free cash flow of around 12 % in relation to sales is targeted for 2024. The company is aiming for a figure of 14 % in the medium term.
2024 Financial Calendar
May 15 - Annual General Meeting
August 1 - Interim Group Report, January – June 2024
October 24 - Trading Update, January – September 2024
