Strong Symrise results reflect big rise in emerging market revenues

By Simon Pitman

- Last updated on GMT

Related tags North america Revenue United states

Fragrance and flavours player Symrise has reported a big rise in its first half year results, driven by gains in its emerging market operations, together with the scent and care division.

The Germany-based global ingredients company said that sales for the period increased by 7 per cent to € 872m, compared to €812m for the corresponding period last year.

This performance was particularly driven by an accelerated sales revenue growth during the second quarter, with sales up by 11 percent to €439m, compared to €395m in the corresponding period last year.

Latin America proves to be the shining star

Although the developed markets were reported to have gained momentum in the second quarter, the emerging markets have been counterbalancing this performance, with the Latin American market proving to be particularly active.

Sales in North America during the first half were up by 19 percent at constant rates, and 10 percent in local currencies, whereas sales in Latin America were up 18 percent, a figure that was not affected by currency exchange.

The increase in revenues was also reflected in the company’s profitability, with EBITDA increasing by 7 per cent to €174.0m, compared to the first half of 2011, a figure that defied the higher costs the company incurred during the period due to raw materials pricing.

Scent and care demand pumps up revenues

The scent and care division, which serves the cosmetics and personal care market, reported sales for the first half of the year up 9 percent to €444m, an increase of 6 percent in local currency, a figure that was particularly driven by oral care, fragrances and Life Essentials.

Again this figure was boosted by the performance in the Latin America region, where sales were up by 29 percent, whereas North America provided the second biggest increase in revenues, up by 9 percent.

The flavour and nutrition division reported sales up 6 percent in the first half, to €427m, a figure that was driven by a 12 percent increase seen in the North American market.

Forecasts upgraded, despite unpredictable economy 

“Although many questions remain surrounding the development of the eurozone, we expect further growth in the second half of the year. We are well-positioned internationally and enjoy a broad customer base,”​ said CEO Dr. Heinz-Jurgen Bertram.

Considering the momentum experienced in the first half o the year, the company now believes it will exceed growth forecasts set at the beginning of the year, and has upgraded its forecast accordingly.

"Additional growth is expected from our new menthol production plant which has been operating since the end of June. We therefore confirm our raised outlook from May and are aiming for sales growth at local currency between 3  per cent and 5 per cent for the full year.”

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