Financial Year 2008: Stable Growth Despite Econ...
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* 6.5% Sales Growth in Local Currencies: Symrise again outperforms
the Market
* ¤ 1.02 Basic Earnings Per Share (EPS) Stable at Last Year's Level
* 19.9% EBITDA Margin
* 9.3% Free Cash Flow/Sales: Strong Cash Flow Generation
* 3 Acquisitions Strengthen Position in the US
(Holzminden/Frankfurt) Despite the unfavorable environment, Symrise
boosted sales by ¤ 45.4 million to ¤ 1.32 billion in 2008. Sales
growth included the strategically important acquisitions in the US
and equated to a local currency increase of 6.5%. Net of
acquisitions, sales increased 3.5% in local currencies (0.8% at
actual rates). Symrise again grew faster than the market in 2008. The
EBITDA margin of almost 20% is on a par with the leading companies in
the global fragrance and flavor industry. The Company generated a
strong operating free cash flow of 9.3% of total sales. In line with
the dividend policy of distributing about 50% of basic underlying
earnings per share as dividends, the Company will propose a dividend
of ¤ 0.50 per share at the annual shareholders' meeting on May 11,
2009.
In 2008, additional progress was made with the strategy of realizing
new sales potential with large multinational customers and in the
faster-growing emerging markets. Sales in local currencies to the ten
largest customers rose by 7% at Scent & Care and by 11% at Flavor &
Nutrition. Both divisions won new core list positions with key
accounts. As last year, the emerging markets remained growth drivers.
Sales in the emerging markets grew by 8% in local currencies and
accounted for 39% of total sales in 2008. Symrise's position has
substantially improved in the US market, which had proved challenging
to date. Sales in the US climbed by 25%; acquisitions in both
divisions played a significant role here. Net of acquisitions, sales
in local currencies rose by a robust 8%.
The strategically important "AND" products, Symrise's innovative
multifunctional products, similarly demonstrated good growth and
again constituted a significant percentage of total sales in 2008.
The Life Essentials portfolio from the Scent & Care division as well
as all of the Taste For Life® products from Flavor & Nutrition showed
particularly strong increases.
In the second half of the year, the financial and economic crisis got
worse. The related decline in demand was most noticeably reflected in
the luxury segments and in customers' order patterns. In the second
half of the year, many customers reduced their inventories in order
to maximize cash flow and optimize working capital.
Earnings in 2008 were impacted by high raw material prices and
acquisition-related integration costs. For the year as a whole, raw
material prices were more than 5% higher than in 2007. Integration
costs totaled ¤ 6 million; additional integration costs of about ¤ 3
million are expected in 2009.
Strategic Decisions
In 2008 Symrise made a series of strategic decisions that position
the Company to grow faster than the market once again in 2009.
Worldwide the Company invested ¤ 179.2 million (2007: ¤ 55.8
million). Investments and acquisitions in 2008 were focused on
expanding the Flavor & Nutrition and Scent & Care divisions in the
US.
In the Scent & Care division, the acquisition of the US businesses of
Manheimer Fragrances and Intercontinental Fragrances has transformed
Symrise into one of the leading fragrance manufacturers in the US air
freshener and scented candle (air care) market. The North American
market for air care products totals more than USD 300 million and
constitutes 10% of the overall fragrances market in the US. In 2009
Symrise plans to open a global Air Care Center in the US.
In the Flavor & Nutrition division, the acquisition of the flavor
business unit of Chr. Hansen has substantially enhanced
competitiveness in the US market. The acquisition likewise reinforces
the sales organization and facilitates access to a new customer base.
By opening a new Creative Center in Shanghai, the Scent & Care
division has recognized the rising importance of China and the entire
North Asian region. The Creative Center serves as a new regional
headquarters for Northeast Asia, which will serve not only China and
Taiwan but also Japan and Korea.
In 2008, Symrise also further expanded its market position in the
area of citrus flavors: by opening a global Citrus Center in
Sorocaba, Brazil, the Company has now direct access to first-class
raw materials and innovative technologies.
Similarly, Symrise has strengthened its position in the rapidly
growing markets in Southeast and Eastern Europe. The subsidiary in
Vienna has been expanded in order to serve customers in these markets
even better. In Moscow Symrise has opened a new development center as
well as a new sensory and consumer research center, which will help
to satisfy customer requirements in this important market more
quickly.
Outlook
In view of the high prices for raw materials in coming months and the
negative impact of the economic crisis on customers' order patterns,
Symrise expects that the first half of 2009 will be weaker than the
strong first half of 2008. For 2009 as a whole, Symrise expects to
grow faster than the market once again. Due to the volatility of the
current economic environment, precise forecasts regarding
profitability and margin are not currently possible. Nonetheless,
Symrise again anticipates strong operating free cash flow for 2009 as
a whole. Symrise has secure financing through the end of 2011 and is
able to pursue its corporate strategy in 2009 with full vigour.
"Despite the challenging business environment, we consider our core
business to be as stable and robust as ever," said Dr. Gerold
Linzbach, Chief Executive Officer of Symrise. "As a result of the
strategic decisions taken in recent years, we are well positioned to
grow faster than the market in 2009 as well."
KEY FIGURES
in ¤ millions 2007 2008 Change (at Change
current (exchange rate-
exchange adjusted) %
rates)
%
Sales 1,274.5 1,319.9 3.6 6.5
Scent & Care 671.3 671.8 0.1 3
Flavor & Nutrition 603.2 648.1 7.4 10.4
EBITDA 272.1 262.5 -4 -4
EBITDA margin in % 21.3 19.9
EBITA 232.3 221.6 -5 -5
EBITA margin in % 18.2 16.8
Operating free cash 145.5 123.4
flow
Basic earnings per in ¤ 1.02 1.02 0 0
share
Dividend per share in ¤ 0.50 0.50
The complete Annual Report for 2008 can be found on our website:
http://investor.symrise.com
About Symrise
Symrise is a global supplier of fragrances, flavorings, and raw
materials and active ingredients for the perfume, cosmetics, and food
industry. Its sales of ¤ 1.32 billion in 2008 place the company among
the top four in the international flavor and fragrance market.
Symrise is represented in more than 35 countries in Europe, Asia, the
United States, and South America. 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:
Press: Investors:
Katja Derow Dr. Andrea Rolvering
Tel.: +49 40 46 96 77 00 Tel.: +49 69 75 93 75 94
Email: k.derow@redroses-pr.com Email: andrea.rolvering@symrise.com
--- End of Message ---
Symrise AG
Mühlenfeldstraße 1 Holzminden Germany
WKN: SYM999; ISIN:
DE000SYM9999; Index: MDAX, TecDAX;
Listed: Regulierter 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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