Symrise hopes to achieve the projected growth with an average annual organic sales growth (CAGR) of 5 to 7% and strategic acquisitions, the company confirmed at its recent Investors' Day in Charleston, South Carolina, USA.
An expansion of its portfolio and sharpening of its product mix (including a focus on high-margin applications) is planned, along with updated targets for sustainability set to come into play, keeping up with industry-wide demand for ever greater sustainability efforts.
Olaf Klinger, CFO of Symrise AG, said: "With our targeted investments in future growth and our reinforced focus on cash flow, we will create a solid basis for the Symrise stock to remain an attractive investment for our shareholders. We will further keep an eye on our healthy capital base.”
Symrise’s outlook: long-term targets for 2025 explainer
The company has revealed top-level details of its strategy to build growth in the coming five year period, as follows:
Symrise intends to achieve its long-term targets through to the end of the fiscal year 2025 with targeted investments in additional organic growth and strategic acquisitions.
The Company aims to increase sales to € 5.5 to 6 billion. The average annual organic sales growth is targeted in the range of 5 to 7 %. Symrise remains committed to generating more than half of its sales in Emerging Markets.
With its favorable product mix and efficiency improvements, Symrise aims to generate an EBITDA margin in the range of 20 to 23 %. Most of the major investment projects will be completed by 2022.
As a result, the Company aims to lower CAPEX to the range of 4 to 5 % by 2025. The Company will continue to create sustainable value for its investors and retain a dividend policy with a pay-out ratio of 30 to 50 %.
In all aspects of its business activities, Symrise will remain committed to its sustainability targets and will therefore strive to reduce its ecological footprint by 50%.