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Symrise ’08 Net Income Drops 7 Percent

Symrise reports its full-year 2008 net income decreased by 7 percent, while stating core business is 'robust and stable.'

BERLIN — Hit by the negative impact of the financial crisis on customer orders and an increase in the cost of raw materials, German fragrance and flavors maker Symrise reported its full-year 2008 net income decreased by 7 percent to 90.4 million euros, or $132.9 million at average exchange.

Citing the market’s current volatility, the Holzminden- and Frankfurt-based company stopped short of giving full-year 2009 profit projections in its annual report, which was published Wednesday. While Symrise predicted the first half of the year will be weaker than the same period in 2008, for the year as a whole, the firm said it expects to grow faster than the market.

The company, which said it outperformed the market in 2008, posted sales up 3.6 percent at current exchange, or up 6.5 percent in local currencies, last year to 1.32 billion euros, or $1.94 billion. Earnings before interest, taxes, depreciation and amortization decreased by 4 percent, to 262.5 million euro, or $385.9 million. Symrise’s EBITDA margin came in at 19.9 percent.

The firm’s Scent & Care business, which accounts for more than half of its revenues, registered a 0.1 percent uptick at current exchange, or grew by 3 percent in local currencies, to 671.8 million euros, or $987.5 million.

“Despite the challenging business environment, we consider our core business to be as stable and robust as ever,” stated Dr. Gerold Linzbach, chief executive officer of Symrise.