Symrise results show recovery in third quarter as destocking slows

By Katie Bird

- Last updated on GMT

Related tags Sales growth Revenue Middle east

Symrise third quarter sales show a marked ‘upswing’ as destocking came to an end with both flavour and fragrance segments showing positive growth.

CEO of the Germany-based firm Dr Heinz-Jürgen Bertram said the third quarter of the year showed a ‘clearly discernable upswing’.

Sales for the period came in at €352.4m compared to €333.5m in the same period last year, an increase of 5.7 per cent.

Scent and Care reported 5 per cent sales growth taking the segments revenue to €175.0m. However, taking into account the effect of currency fluctuations and acquisitions made in 2008, sales grew about 3 per cent.

This included sales growth in the Europe Africa and Middle East region, which for the first two quarters of 2009 suffered significantly from destocking.

Growth continues in emerging markets

Growth in the emerging markets of South America and Asia/Pacific also helped boost the quarter’s sales.

However, fine fragrance and the high price areas of the personal care segment continued to suffer in a weaker economy.

The company’s flavour and nutrition sector saw sales grow by 6.3 per cent reaching €177.4m for the quarter.

South America was a star region for the segment bringing in sales growth (in local currency) of over 30 per cent.

Reflecting the results of the fragrance sector, the third quarter was the first time in the year that Europe Africa and Middle East recorded flavour sales growth. Similarly, the company said it was due to diminished destocking on the part of customers.

Sales growth in both divisions signals an end to destocking

Commenting on the results, Bertram said: “In our view, the sales growth in both business divisions and in all region is a signal that destocking on the part of our customers has virtually come to an end.”

Strong sales helped shore up net income for the period which grew by 22 per cent to reach €29.3m.

In addition to increased revenue, Symrise said that the first savings from its restructuring plan implemented earlier in the year were beginning to have an effect, and helped grow net income.

The company also announced today the resignation of its chief financial officer Dominique Yates and the appointment of Hans Holger Gliewe to head up the flavour and nutrition division.

According to Symrise, the CFO is leaving the company on good terms to pursue personal projects and his replacement has been found and will be announced shortly.

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