Germany-based fragrance and flavour supplier Symrise has announced the completion of a €16 million investment at its Holzminden headquarters to meet demand for synthetic menthols in emerging markets.
Demand is increasing both in industrialized nations and emerging markets – especially in China / Asia - with the former production set up [we were not] able to fulfil that demand,” a company spokesperson told CosmeticDesign-Europe.com.
In order to fulfil the company’s new demand, its raw material supplier partner of almost four decades, Lanxess has also invested extensively.
“With this step, we are extending our leading position in this strategically important segment and investing in a key growth segment,” says Symrise CEO, Dr. Heinz-Jürgen Bertram.
In addition, Symrise is investing in its facility in the US in order to process greater volume flows around the world.
Acquisitions and innovation drive results
Last month the company reported above market average group sales growth, but noted weaker results in its scent and care division.
Group sales, which also include the company’s flavour and nutrition business, grew by 4 percent to €432.6m, compared to €416.8m in the corresponding quarter last year, a figure that was driven by the performance in the Americas as well as larger global players.
The EBITDA margin was 21 per cent for the quarter, while net income rose slightly, up from €41.1m to €42.5m, a figure that the company said was impacted by rising raw material costs.
“Our business with global customers has grown especially rapid. In addition, we maintained our profitability at our targeted margin level of 20 per cent despite high raw material costs,” said Bertram.
“We also expanded our market presence with targeted acquisitions and strengthened our focus on innovation in fast growing market segments.”
In the scent and care division sales rose to €225m, which represented a rise of 3 per cent in reported terms and 1 per cent in local currency, when compared to sales of €218m in the corresponding period last year.
Oral care and Latin America rocket
Highlights for the division included double-digit sales growth for the oral care business, driven by new business in the Americas, while the company also said further benefits were achieved by an expansion of its product portfolio.
Overall sales in the Latin America region grew by 15 per cent for the scent and care business, particularly driven by oral care, together with the acquisition of the Belmay’s Brazilian business. Likewise, North America achieved sales growth of 7 per cent.