Symrise Q1 Profits Rise 7%

The German fragrance and flavors maker’s sales gained 5.8 percent in the period.

BERLIN — First-quarter profits at Symrise AG rose 7 percent to 46 million euros, or $60.8 million, due to solid developments in emerging markets and strong performances in established ones, including those touched by the euro crisis, the company said.

“Once again, we enjoyed robust growth — growing faster than the market,” said Heinz-Jürgen Bertram, Symrise’s chief executive officer. “With the acquisition of the U.S. fragrance manufacturer Belmay, we took another strategic step towards further expanding our product portfolio and market presence in North America. We are therefore confident for the upcoming months of 2013.”

The Holzminden, Germany-based fragrance and flavors maker registered earnings before interest, taxes, depreciation and amortization (EBITDA) of 92.8 million euros, or $122.6 million, a rise of 6 percent. In local-currency terms EBITDA gained 7 percent. The quarterly EBITDA margin was on target at 20.3 percent, which was flat versus the same prior-year period.


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Group sales rose 5.8 percent to 457.6 million euros, or $604.4 million. They advanced 7.9 percent when adjusted for local currencies. Symrise generated 48 percent of its revenues in emerging markets, versus 46 percent in 2012. Sales on a local-currency basis in Eastern Europe rose 5 percent.

Dollar figures are calculated at average exchange for the three-month period ended March 31.

The EBITDA at Symrise’s scent and care division grew 8 percent to 48.9 million euros, or $64.6 million. The branch’s revenues had an uptick of 9 percent to 245 million euros, or $323.6 million, driven by the fragrance and aroma molecules business units. Adjusted for local currencies, the increase amounted to 11.1 percent.

The branch’s sales grew in every market, with the strongest developments in the Asia-Pacific region and Latin America. Both zones posted sales rises of 15 percent in local currencies. North America also registered a revenue gain of 12 percent in local currency.

As previously reported, Symrise anticipates it will outperform the global fragrance and flavors industry’s forecasted 2013 market growth of 2 percent to 3 percent.

The company celebrates its tenth anniversary this year. Symrise was created after the merger of German fragrance and flavor suppliers Haarmann & Reimer and Dragoco.