PARIS – Symrise AG reported first-quarter sales rose 4.6 percent, driven by strong development in all of its business segments.
Revenues at the German fragrance and flavors maker reached 765.2 million euros, or $840.5 million. On an organic basis, sales advanced 5.3 percent.
Earning before interest, taxes, depreciation and amortization (EBITA) were up 4.4 percent to 165.5 million euros, or $181.8 million, in the three months ended March 31. That included a one-time gain from a purchase price adjustment of 4.7 million euros, or $5.2 million, linked to the sale of Pinova Inc. Symrise’s EBIT margin came in at 21.6 percent.
“We seamlessly maintained our strong performance into the first months of 2017, expanded our existing business in all segments and also gained new customer projects,” Heinz-Jürgen Bertram, chief executive officer of Symrise AG, said in a statement released on Tuesday. “There is therefore every reason to feel confident as we look forward to the coming months.
“For 2017 we are planning a number of projects,” he continued. “These will include gaining broad access to natural, sustainable raw materials and the expansion of our capacities in Holzminden as well as internationally.”
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Symrise’s scent and care division posted a 3.2 percent sales decline to 333.2 million euros, or $366 million, due to the sale of Pinova in December 2016. On a like-for-like basis, growth stood at 1.1 percent.
Stripping out the Pinova portfolio effect, Symrise’s aroma molecules division registered the strongest first-quarter sales growth inside the scent and care division, the company said. Spurring gains was high demand for fragrance ingredients and menthol.
Symrise said fine fragrances also were a strong contributor to the division’s growth. Its sales were up in double digits in Asia, while gains were “satisfactory” in Latin America and the Europe, Africa and Middle East zone.
The company’s flavor segment generated sales of 270.2 million euros, or $296.8 million, up 8 percent versus the same prior-year period. Revenues from the nutrition branch of Symrise, meanwhile, rose 17.8 percent to 161.8 million euros, or $177.7 million.
Dollar figures are converted at average exchange for the period to which they refer.
The company maintained its financial targets for this year.
“The group remains confident that it will continue to achieve growth on a sustainable basis in 2017, and aims to substantially outperform the relevant market – which is projected to grow at a rate of about 3 percent,” Symrise said in a statement. “The various investment projects to increase capacity in Holzminden as well as internationally, especially in growth markets, will continue to facilitate organic growth. Moreover, Symrise aims to be highly profitable, with an EBITDA margin of approximately 20 percent.”
The company also reiterated its medium-term targets through the end of 2020, including a compound annual growth rate of 5 percent to 7 percent, and an EBITDA margin of 19 percent to 22 percent.