Scent & Care drive strong results for Symrise, outlook is strong
The Germany-based fragrance and flavours company said that group sales increased by 8% in local currencies to reach €470m, which it said was down to high demand for its products in both divisions.
With almost no impact from currency translations, the company revealed that its EBITDA increased by 9% to €101m, compared to €93m in the corresponding period last year.
Maintaining the momentum from 2013
CEO Dr. Heinz-Jürgen Bertram said that so far in 2014 the company had managed to maintain the high levels of growth it had experienced in the 2013 financial year on the back of high demand from its customers.
In the scent & care division, where sales grew to €254.6m, the company said that particularly strong performances were seen in the fragrances and life essentials business units through double-digit revenue growth, while continued demand for menthol drove the aroma molecules division.
On a regional basis, the scent and care division saw sales grow by 13% in the Latin America region, 8% in the Asia Pacific region and by 9% in the North America and EAME regions.
In the flavor and nutrition division, sales came in at €215m, driven mainly by results in Latin America, where sales increased 18%, as well as the emerging markets.
Given its strong start in the first quarter, the company says that it will continue to stick to its outlook for the rest of the financial year 2014, aiming for EBITDA margin of more than 20%.
Acquisition of Diana Group
The company also mentioned in the results that its planned acquisition of France-based pet food and natural flavours company Diana Group is likely to grow its business in the 2015 financial year.
In 2013 the company recorded sales of €424m and an EBITDA margin of more than 21%.
Looking ahead to the full year results for 2014, the company says that given the strong start to the year, it is sticking to its initial forecasts, expecting group sales growth of between 5% to 7%, and EBITDA margins to exceed 20%.