The scent and fragrance company says it exceeded its targets for the fiscal year, benefiting from ‘strong demand’ across all segments and regions.
It increased its sales by 12% to EUR 2,903.2 million (up from EUR 2,601.7 million in 2015), and its EBITDAN grew by 9% to EUR 625.2 million (up from EUR 572.2 million in 2015).
"In the fiscal year 2016, Symrise continued with its highly dynamic and profitable growth course while making targeted investments to expand its portfolio, competencies and capacity,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.
“For 2017, we remain optimistic despite political changes and tensions in some countries. We have a presence in more than 40 countries, a widely diversified portfolio, and highly engaged employees. We aim at continuing our highly profitable growth course and remain one of the leading companies in our industry."
While Symrise says it enjoyed robust demand across all regions and segments in 2016, it particularly highlighted its double-digit growth in emerging markets as a key growth driver.
It saw a 15% growth in the groups emerging market’s sales, accounting for 43% of total sales. It notes that compared to the prior year, the sales share of those markets has been a bit lower as the companies acquired in 2016 have a stronger market presence in its mature markets.
“As part of its proven corporate strategy, Symrise continued to expand its presence in Emerging Markets and intensified cooperative activities with strategic customers in those markets,” confirmed the company.
Scent & Care
Sales in Scent & Care increased from EUR 1,073.7 million to € 1,311.3 million, according to Symrise, meaning sales grew by 22% in the reporting currency.
“All of the business segments contributed to this growth. The strongest gains were posted by the Aroma Molecules division. Furthermore, the segment benefited from strong demand for menthol and fragrances.”
The company notes that its fragrance business, the Pinova Group, which was acquired in 2016, is not currently as profitable as the wider Symrise Group.
The year ahead
Looking forward, Symrise believes that with its global presence, it is well positioned to balance out regional differences in the coming fiscal year, which it predicts will be a more challenging landscape due to certain geopolitical tensions and some countries struggling with debt.
“Symrise is optimistic to continue its sustainable profitable growth in 2017. Symrise again aims to substantially outperform the relevant market, where growth of around 3% is forecasted. Moreover, the Company intends to remain highly profitable with an EBITDA margin of around 20%.”