Symrise grows strongly in a difficult market en...
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* Sales growth of 6.7% (in local currencies) significantly above
industry average
* Underlying earnings per share growth 13% in local currencies
* Integration of Chr. Hansen on track
(Holzminden/Frankfurt) In a difficult environment Symrise managed to
increase its sales in the first half of 2008 compared to the previous
year and to maintain margins in line with last year. The management
board expects for the full year 2008 a sales increase of 6-7 percent
and an EBITA growth of 6 percent (both in local currencies).
In the first half of 2008 Symrise increased its sales by 6.7 percent
on a local currency basis and therefore grew much faster than the
market, which grew around 2.5 percent. This positive development can
be attributed to high growth rates in the Emerging markets of Europe,
Africa, the Middle East and Asia. Compared to the previous year,
sales grew by 2.3 percent at actual rates from EUR 660.9 million to
EUR 676 million.
The earnings (EBITA) for the first half of 2008 were up 6 percent in
local currencies (up slightly in actual rates), increasing from EUR
123.1 million to 123.6 million. This increase was achieved despite
significant increases in raw materials, energy and transportation
costs.
These cost increases were partially compensated for by strong cost
management and an ongoing programme of production efficiency
improvements. The EBITA-margin stood at 18.3 percent.
Net profit increased by 16 percent at actual rates from EUR 52.6
million to EUR 60.8 million. Accordingly, earnings per share reached
51 cents compared to 44 cents in the respective period last year.
Flavor & Nutrition
The development of the group was led by the good growth of Flavor &
Nutrition. The division registered sales growth of 11 percent in
local currencies, reaching EUR 333.3 million. At actual rates, this
represents an increase of 7 percent. South America, showing a growth
of 17 percent in local currencies, and Asia/Pacific, showing a growth
of 15 percent in local currencies, especially contributed to this
high growth.
Chr. Hansen, which was acquired in the second quarter of 2008,
contributed sales of EUR 8.3 million. After integration costs, Chr.
Hansen made an immaterial contribution to profit.
Scent & Care
Due to global pressure on consumer spending in the second quarter,
the Scent & Care division showed moderate sales growth of 2.5 percent
in local currencies in the first half year, with sales at Euro
342.7million. While segments like Mint and Life Essentials continued
to show strong growth, "luxury segments" like Fine Fragrances and
parts of Personal Care had to contend with lower demand.
In order to compensate for the increased raw material and energy
costs and in order to protect our margins going forward, the division
announced selective price increases of 10 percent and more in early
July.
Key financials for the first 6 months of 2008
Change in Change in %
H1 / 2007 H1 / 2008 % (in local
In ¤ In ¤ (at actual currencies)
million million rates)
Sales 660.9 676.0 + 2.3 + 6.7
- Scent & Care 349,7 342,7 - 2,0 + 2.5
- Flavor & Nutrition 311,2 333,3 + 7.1 + 11.4
EBITA 123.1 123.6 + 0 + 6
EBITA-Marge in % 18.6 18.3 - 0.3 ppt
EBIT 105.4 107.9 + 2 + 8
EBIT-Marge in % 15.9 16.0 + 0.1 ppt
Net income for the period 52.6 60.8 + 16
Earnings per share 0.44ct 0.51ct + 16
Underlying Earnings per
share* 0.55ct 0.59ct + 7
No. of employees (on the
qualifying date)
(incl. Chr. Hansen
take-over) 4.926 5.035 + 2
* adjusting for recipe amortization as well as exchange movements on
loans, movements in the valuation of swaps, and applying the
underlying tax rate
Our full half year report and accounts can be found under
www.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 ¤1.27 billion in 2007 place the company among the top
four in the international flavors and fragrances market.
Headquartered in Holzminden, Germany, Symrise is represented in more
than 30 countries in Europe, Asia, the United States and South
America.
With more than 40 first patent applications per 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: Alexander Kleinke, Investor Relations, Phone +49 69 75 93
76-97, e-mail: alexander.kleinke@symrise.com
--- 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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