BERLIN — Symrise AG said its first-quarter net profits for 2012 gained 3 percent to 42.5 million euros, or $55.7 million, citing improving market conditions and higher demand for its products.
“After the subdued development at the beginning of this year, the market environment improved faster than originally anticipated,” said Heinz-Jürgen Bertram, Symrise’s chief executive officer. “In view of the positive developments seen in this quarter, we are raising our sales outlook for the current financial year.”
The company is now predicting sales growth between 3 and 5 percent and a continuing earnings before interest, taxes, depreciation and amortization margin of around 20 percent for 2012.
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In the first quarter, the Holzminden, Germany-based fragrance and flavors supplier registered EBITDA of 87 million euros, or $114 million. The company said it reached its targeted EBITDA margin of 20 percent despite higher raw material costs.
Sales were up 3.8 percent to 432.6 million euros, or $567 million. Adjusted for local currencies, sales were up 2 percent.
Dollar figures are converted at average exchange rates for the three-month period ended March 31.
In Symrise’s scent and care division, revenues rose 3 percent to 224.9 million euros, or $294.8 million. Adjusted for local currencies, the rise was 1 percent.
The division’s EBITDA saw an uptick of 4 percent to 45 million euros, or $59 million. Latin America was the fastest growing region for scent and care, with sales up 15 percent at local currency. North America also turned in strong growth, with revenues up 7 percent on-year. Symrise said it anticipates further growth in the region due to its February purchase of U.S.-based Triology Fragrances.