PARIS – Symrise AG reported first-half net profits declined 0.1 percent, dented by weaker demand in its scent and care segment.
Net income at the German fragrance and flavors maker reached 141.8 million euros in the six months to June 30, while earnings before interest, taxes, depreciation and amortization (EBITDA) were down 0.1 percent to 322.9 million euros. The group’s EBITDA margin was 21.3 percent.
Symrise’s sales gained 3.6 percent to 1.52 billion euros, spurred by increased sales in all segments and regions. On an organic basis, revenues were up 5.2 percent.
Revenues grew 12 percent in Latin America and 4 percent in the Europe, Africa and Middle East region. A 2 percent sales gain was registered in North America, while the Asia-Pacific region’s revenues were up 1 percent. Meanwhile, sales advanced 5 percent in emerging markets, which generated 43 percent of group revenues.
In view of the strong results, Symrise raised its guidance for its full-year EBITDA margin, which is now expected to exceed 20 percent, versus the “approximately 20 percent” formerly projected.
“The targeted and continuous investments in our competencies and capacity are paying off,” Heinz-Jürgen Bertram, chief executive officer of Symrise, said in a statement on Wednesday. “We see this as a confirmation of our strategy. With the recent acquisition of Cobell, we are strengthening our position in the lucrative U.K. beverage market, which promises additional sales potential for our innovative applications.
“We are in an excellent position to meet the rising demand for our products and to stay on track for growth in the second half of this year,” he continued. “Our goals are unchanged: we want to remain one of the fastest-growing companies in the industry and to operate highly [profitably].”
Symrise’s scent and care division posted a 4.4 percent sales decline to 638.2 million euros, against a tough comparable in the same prior-year period and also due to the sale of Pinova’s industrial activities in late 2016. Stripping out the effect of the latter, the branch achieved organic gains of 1.1 percent, with good dynamics noted in the fine fragrances and cosmetic ingredients activities.
Symrise’s flavors segment made sales of 554.8 million euros, up 7.2 percent. Revenues from the nutrition branch rose 16.3 percent to 322.2 million euros.
“After the strong first half and a good start in the third quarter, Symrise is looking ahead to the remaining months of the year with confidence,” the company said. “Despite the political unrest and economic uncertainties in some countries, the group expects demand and growth to be generally strong.
Symrise confirmed its goal of once again exceeding the growth rate of the global flavor and fragrances market, which it said was growing at an average annual rate of around 3 percent.
The company said its mid-term targets remain unchanged, including a compound annual growth rate of 5 percent to 7 percent, and an EBITDA margin in the range of 19 percent to 22 percent.