2007 financial year: Symrise sets sales and ear...
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Corporate news announcement processed and transmitted by Hugin ASA.
The issuer is solely responsible for the content of this
announcement.
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- Sales growth of 6.2 percent in local currencies
- EBITDA margin more than 21 percent
- Dividend of 50 cents per share proposed
- 4th quarter sales growth 3.5% in local currencies, very strong
start in 2008
- Optimistic outlook for the 2008 financial year - maintain 5-6
percent sales
growth target
- Proposed acquisition of the flavor business from Chr. Hansen
(Holzminden/Frankfurt) Symrise AG had a successful year in 2007: the
company grew twice as fast as the market thanks to its concentration
on fast-growing segments and regions. With sales growth of 6.2
percent in local currencies and an increase in the EBITDA margin to
more than 21 percent, Symrise reached its ambitious targets for 2007
in all respects. The Executive Board and the Supervisory Board are
proposing a first ever annual dividend of 50 cents per share to the
annual shareholders' meeting.
Symrise is also pleased to announce its latest proposed acquisition:
the company has signed an agreement to take over the flavor business
from the Danish supplier Chr. Hansen. Pending regulatory approval in
the US and Germany, this acquisition should be completed before the
end of April.
On the basis of local currencies, sales in 2007 were 6.2 percent
higher than in the previous year. At actual exchange rates, the
company achieved sales growth of 3.7 percent, from ¤ 1 229.4 million
to ¤ 1 274.5 million. Sales of "AND" products - products with
additional benefits - increased particularly fast and reached 31.5
percent of total sales. Sales to the most important customers also
grew disproportionately fast (8.2 percent based on local currencies /
5.6 percent at actual exchange rates). Sales to the ten largest
customers rose to 28 percent of the total sales in the period as a
result.
Thanks to the concentration on high-margin products and efficient
cost management the EBITDA margin went up from 19.8 percent to 21.3
percent, increasing to ¤ 272.1 million, 11.9 percent higher than in
the previous year. EBIT grew by 19%, from ¤ 163.5 million to ¤ 195.7
million.
Net income for the year rose to ¤ 97 million, following a loss of ¤
90 million in the previous year. Earnings per share (diluted and
basic) increased to ¤ 0.82, with underlying EPS at ¤1.02.
In view of the positive development of the business, the Executive
Board and the Supervisory Board are proposing to the annual
shareholders' meeting (which is being held on 29. April 2008) that a
first ever dividend of ¤ 0.50 per share be paid. In relation to the
adjusted earnings per share, this corresponds to a dividend payout
ratio of about 50 percent.
Scent & Care
The Scent & Care division increased its sales in local currencies by
6.5 percent to ¤ 671.3 million in 2007. At actual exchange rates,
sales were up 3.7 percent. There was very good sales growth in all
regions. EBITDA rose from ¤ 113.0 million to ¤ 134.7 million, an
increase of 19.2%, attributable primarily to an improvement in the
profitability of new products and strict cost management. The EBITDA
margin went up from 17.4 to 20.1 percent.
The positive development in divisional sales (based on local
currencies) was driven to a large extent by Cosmetics (+ 10.6
percent) and Mint (+ 12.6 percent). In Fine Fragrances, Symrise
succeeded in winning some major prestigious new fragrances in 2007
and in maintaining the high local currency growth rate of 8.5
percent.
Flavor & Nutrition
The Flavor & Nutrition division also had a successful year: based on
local currencies, sales increased by 5.8 percent to ¤ 603.2 million.
The sales growth at actual exchange rates amounted to 3.6 percent.
EBITDA rose from ¤ 130.3 million to ¤ 137.4 million, which is
attributable essentially to the increase in sales. The EBITDA margin
reached 22.8 percent from 22.4 percent in the previous year.
Innovations from the "Taste-For-Life®" range boosted the positive
results achieved in the Sweet and Savoury business units
considerably. "Taste-For-Life®" flavors help to reduce the sugar,
salt and fat content in food products substantially without any
adverse impact on taste, so they contribute to the global trend
towards a healthier diet.
A global "Citrus Centre" was opened in Brazil to continue
strengthening the core skills in the citrus field.
The most recent proposed acquisition by the company represents
further systematic implementation of the growth strategy. Pending the
approval of the relevant regulatory authorities, Symrise will acquire
the flavor business from the Danish supplier Chr. Hansen and thereby
strengthen its presence on the North American market: Chr. Hansen
generates a substantial majority of its flavor sales in the USA. This
is Symrise's biggest acquisition to date. It will strengthen the
company's current position on what is the largest domestic market for
flavors in the world.
Outlook for 2008
"We are present in the fast-growing international regions around the
world and will be covering the North American market even better in
the future than has been the case in the past. We are a reliable,
flexible partner for our customers and appeal to consumers' emotions
with exceptional creativity. We have innovation skills that give our
products their technical basis and impressive additional flair. Our
focus on efficiency makes us a fast mover and protects our
profitability. All of this gives us the confidence that our sales
growth will again be considerably higher than overall industry growth
in 2008", says Dr Gerold Linzbach, Chairman of the Management Board
of Symrise AG.
All in all, the company is expecting to achieve average sales growth
of 5 to 6 percent per year in 2008 and 2009. The Executive Board also
believes that there is room for further growth in the EBITDA margin.
Key financials for 2007
Growth Growth
2007 (actual (local
2006 in ¤ rates) currency)
in ¤ million million in percent in percent
Sales 1 229.4 1 274.5 3.7 6.2
- Scent & Care 647.4 671.3 3.7 6.5
- Flavor & Nutrition 582.0 603.2 3.6 5.8
EBITDA* 243.2 272.1 11.9
EBITDA margin* in percent 19.8 21.3 -
EBIT* 163.5 195.7 19.7
EBIT margin* in percent 13.3 15.4 -
Net income for the year -89.8 97.4 -
Earnings per share, in ¤ -1.08 0.82 -
Employees (qualifying 3.2
date)** 4 889 5 046
* 2006 adjusted to eliminate integration and restructuring expenses
** Qualifying date: without apprentices and trainees
Key Financials Q4/2007
Growth Growth
Q4/2007 (actual (local
Q4/2006 in ¤ rates) currency)
in ¤ million million in percent in percent
Sales 285.0 285.3 0.1 3.5
- Scent & Care 155.1 149.5 -3.6 0.0
- Flavor & Nutrition 129.9 135.8 4.5 7.7
EBITDA* 51.1 53.1 4.0
EBITDA margin* in percent 17.9 18.6 -
EBIT* 31.1 34.1 9.8
EBIT margin* in percent 10.9 12.0 -
This press release as well as the 2007 Symrise Annual Report are also
available on our website at www.symrise.com.
About Symrise
Symrise is a global supplier of fragrances and flavorings while also
manufacturing raw materials and active ingredients for the perfume,
cosmetics and food industries.
Its sales of ¤1.27 million in 2007 place the company among the top
four in the international flavors and fragrances market.
Headquartered in Holzminden, Germany, Symrise maintains a total of
more than 31 sites in Europe, Asia, the United States and South
America.
With roughly 50 registered patents each year, Symrise is one of the
most innovative manufacturers on the market. Used by manufacturers of
perfumes, cosmetics and foods, our products are an inseparable part
of daily life. At Symrise we combine an awareness of consumer trends
with cutting-edge technologies, focusing on innovative fashion and
lifestyle products that have additional practical value for the
consumer. Symrise - always inspiring more.
www.symrise.com
Contact: red roses communications, Katja Derow, Phone +49 (0)162
4311376 or +49 (0) 40 46 96 77 0 10
--- End of Message ---
Symrise AG
Mühlenfeldstraße 1 Holzminden Germany
WKN: SYM999; ISIN:
DE000SYM9999; Index: MDAX, TecDAX;
Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Freiverkehr
in Bayerische Börse München,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr
in Börse Berlin,
Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart,
Prime Standard in Frankfurter Wertpapierbörse;
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