Emerging markets drive sales gains for Symrise

By Simon Pitman

- Last updated on GMT

Emerging markets drive sales gains for Symrise

Related tags Asia-pacific Aroma compound Symrise

Flavours and ingredients player Symrise says that the driving force behind its strong market growth during the first financial quarters was the emerging markets.

The company said that local currency sales grew at 8 percent to €458m, which translated at a rise of 6 percent when taking into account currency translations. The EBITDA earnings also rose slightly on the back of the improved sales, to €93m, while the EBITDA margin was 20.3 percent and net income was $46m.

'Growing faster than the market'

“Once again, we enjoyed robust growth – growing faster than the market. Along with solid development in emerging markets, we also benefited from considerable growth impetuses in the established markets,”​ said Dr. Heinz-Jürgen Bertram, CEO of Symrise.

“With the acquisition of the US fragrance manufacturer Belmay, we took another strategic step towards further expanding our product portfolio and market presence in North America. We are therefore confident for the upcoming months of 2013,”​ he added.

Breaking the figures down to a regional level, the Asia-Pacific region returned sales growth of 9 percent, and 11 percent at local currency rates, generating approximated 48 percent of the group’s sales.

The EAME region, which includes the mainstay European market, showed sales growth of 4 percent, which was 5 percent in local currencies.

Scent and care division drives growth

The scent and care division outshone the performance of the flavor and nutrition industry, with sales grew by 9 percent to €245m, which represented an increase of 11 percent in local currencies.

In contrast, the flavor and nutrition division grew sales by just 2 percent to €213m.

Sales in the scent and care division were driven by significant gains in the Latin America and Asia Pacific regions, where revenues were up by 15 percent in local currencies for both markets. The company said that revenues in the region driven by fragrances, oral care and aroma molecules

In North America sales for the division increased by 12 percent in local currencies, while sales in the EAME region grew by 7 percent.

Despite slower sales impacted by the Euro crisis, the company said that its expects to see gains in other market continue to counterbalance this situation, giving it a positive outlook, in line with the company’s aims to grow sales at a CAGR of between 5 to 7 percent, until 2020.

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