Symrise Ag (SYIEF.PK,SYIEY.PK), a supplier of fragrances, flavorings, cosmetic active ingredients, Tuesday reported a 7 percent growth in annual profit, despite increased raw materials prices and start-up costs for the doubling of its menthol capacities.
Net income climbed to 157.5 million euros ($205 million) from last year’s 146.5 million euros.
Earnings before interest, taxes, depreciation and amortization or EBITDA grew 7 percent to 338.9 million euros, despite higher raw material prices and one-off expenses, such as the start-up costs for doubling the menthol production. EBITDA margin fell to 19.5 percent from 20 percent.
Earnings Before Interest and Tax, or EBIT, advanced 8 percent to 252.6 million euros. EBIT margin slid to 14.6 percent from 14.8 percent.
Group sales increased 9.6 percent to 1.735 billion euros from 1.584 billion euros a year earlier. The growth was 6 percent at local currency, reflecting positive developments in both divisions, and exceeded guidance.
Symrise had raised its forecast in May 2012, which aimed for a sales growth between 3 percent and 5 percent.
According to the company, North America showed the most dynamic growth among established markets. Of the Emerging Markets, whose share of sales rose from 46 percent to 48 percent, Latin America posted the strongest growth.
Symrise noted that the Chinese market played a particularly key role for the positive developments in Asia/Pacific.
In the Scent & Care segment, sales climbed 10.2 percent to 882.8 million euros while EBITDA margin fell to 18.2 percent from 19.7 percent. The division saw positive developments in demand for every business unit, with the application areas Fragrances, Oral Care and Life Essentials leading the way.
Flavor & Nutrition generated 852.1 million euros, up nearly 9 percent from last year, and EBITDA margin improved to 20.9 percent from 20.2 percent.
The division grew in all application areas. Within the business, savory and beverage applications as well as sweets saw particularly high growth rates.
Symrise intends to increase the dividend to 0.65 euros per share for the past fiscal year from last year’s 0.62 euros per share.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said, ”…we consider ourselves well equipped for 2013. Once again, we aim to grow faster than the market for fragrances and flavors…By 2020 we want to increase sales by € 1 billion and achieve an EBITDA of more than € 500 million.”
The company’s 2020 sales target corresponds to an average annual sales growth of 5 percent to 7 percent. EBITDA margin is expected to develop within the range of 19 percent to 22 percent.
For 2013, the international flavors and fragrances market growth has been estimated at 2 to 3 percent. Symrise targets to outperform the market in 2013 also. The firm expects raw material prices to remain at a high level with short-term volatility in 2013.
Symrise expects a generally advantageous economic environment, although Europe, in particular, is expected to continue to be affected by uncertainties from the sovereign debt crisis.
The stock settled at 29.60 euros on Monday.
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by RTT Staff Writer
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