PARIS — Symrise AG reported an 8.8 percent decline in third-quarter net profits, which were dented by the acquisition and integration of Pinova Holdings Inc.
The Holzminden, Germany-based fragrance and flavors maker’s net income in the three-month period ended Sept. 30 reached 59.9 million euros, or $66.9 million. Sales in the quarter were 729.8 million euros, or $814.9 million, up 12.9 percent.
Net profits in the first nine months of the year were down 2.9 percent to 193.6 million euros, or $216.1 million, while sales gained 10.9 percent to 2.19 billion euros, or $2.45 billion.
Dollar figures are converted at average exchange for the periods in question.
Symrise saw its strongest revenue growth in Latin America, where sales were up 34 percent in local currency terms. That was followed by North America, with a 27 percent gain, and Asia-Pacific, 12 percent.
The company said it has decided to sell the industrial activities of Pinova Holdings to French manufacturer DRT for $150 million. But Symrise will continue operating Pinova’s former Renessenz unit, which has now been integrated into the company’s Aroma Molecules division.
Symrise has also realigned its fragrance unit, which is no longer organized by geographic regions. Rather, it is now divided by applications, such as fine fragrance, personal care, home care and oral care.
The company remains bullish about business this year.
“We are expecting the final spurt in 2016 with optimism,” said chief executive officer Heinz-Jürgen Bertram.
The company reiterated that it plans to outpace the global flavors and fragrances market that is expected to grow about 3 percent in 2016. Symrise also confirmed its target EBITDA margin of more than 20 percent.
Symrise’s medium-term aims for the year 2020 involve a compound annual growth rate of between 5 percent and 7 percent, and an EBITDA margin of 19 percent to 22 percent.