- WKN: SYM999
- ISIN: DE000SYM9999
- Land: Deutschland
Nachricht vom 08.08.2019 | 07:30
Symrise achieves strong revenue growth of 7.4 % in the first half of the year (news with additional features)
DGAP-News: Symrise AG / Key word(s): Half Year Results
Interim Group Report January - June 2019
"After a dynamic start to the year, we continued our growth and further expanded our business," said the CEO of Symrise AG, Dr. Heinz-Jürgen Bertram. "All segments increased sales and contributed to the Group's growth. This positive development is accompanied by continued good demand from our customers. That is why we are looking ahead to the coming months with confidence, even if the economic prospects are slowing down in some regions of the world. Symrise has proven in the past that our business remains very robust even in such times. We therefore stand by our annual goals as well as our long-term ambitions. These goals include annual organic sales growth of 5-7 % on average by 2025."
Good demand in all segments
Symrise achieved dynamic organic sales growth of 6.2 % in the first half of 2019. All segments benefited from good demand. Including exchange rate effects, consolidated revenues increased by an impressive 7.4 %.
The Scent & Care segment
Sales in the Cosmetic Ingredients division grew by a single-digit percentage, driven by the North America and Asia/Pacific regions. The national markets in the USA and China developed particularly dynamically.
The Fragrance division achieved a double-digit percentage increase in organic sales. Growth drivers were the Consumer Fragrances and Fine Fragrances business units. In the Consumer Fragrances business unit, growth in Asia/Pacific and North America was particularly high, especially in India and the USA. The Fine Fragrances business unit significantly increased sales in the North American and EAME regions. The Oral Care business unit grew in the low single-digit percentage range and achieved the highest growth in the Asia/Pacific region.
Scent & Care improved EBITDA by 9.7 % to EUR 140 million in the first half of 2019 (H1 2018: EUR 128 million). The segment's EBITDA margin was 19.7 % and was despite persistently high raw material costs above the previous year's level (19.4 %).
The Flavor segment
In the first half of 2019, Flavor achieved organic sales growth of 3.7 % over very high comparable figures from the previous year. The Savory business unit and the Asia/Pacific and EAME regions significantly increased sales. In the Sweet business unit, the increase in sales was modest after the high level of momentum in the previous year. Accounting for currency translation effects, the segment's sales in the reporting currency grew by 5.4 % to EUR 637 million (H1 2018: EUR 605 million).
In the EAME region, the Flavor segment realized single-digit organic growth rates. Significant growth stimuli came from applications for savory products in Russia and the Middle East.
The Asia/Pacific region recorded double-digit growth rates in the Beverage and Savory products application areas. The markets of Indonesia, Malaysia, Thailand and Vietnam developed particularly well.
Latin America also was also dynamic and achieved double-digit organic growth. The application areas for savory and sweet goods did particularly well in Brazil, achieving double-digit growth.
In North America, sales growth was in the single digits. In particular, the savory products application area developed positively.
The EBITDA of the Flavor segment amounted to EUR 144 million in the reporting period (H1 2018: EUR 127 million), and grew 13.6 % compared to the prior year's figure. The EBITDA margin improved from 21.0 % in the first half of the previous year to 22.6 % in the current fiscal year. This was mainly due to proportionally lower raw material costs.
The Nutrition segment
Nutrition achieved strong organic growth of 11 % in the first half of 2019. Accounting for currency translation effects, sales in the reporting currency amounted to EUR 343 million and were 10.5 % above the previous year's level (H1 2018: EUR 311 million).
The Pet Food business unit achieved a very good, double-digit organic growth rate. Of particular note is the dynamic sales development in the Latin America and Asia/Pacific regions with strong growth in South Korea, Thailand, Brazil and Mexico.
In the Food business unit, the regions of Asia/Pacific and Latin America posted double-digit growth, especially in China, Australia and Mexico. Sales in the EAME and North America regions fell slightly.
Sales also developed well in the Aqua business unit. Important new business was gained here, especially in the EAME region.
Probi achieved double-digit sales growth during the reporting period. The regions of EAME and North America showed particularly good growth. In Europe, numerous new business wins were realized, and a large customer's business stabilized in North America.
The Nutrition segment generated an EBITDA(N) of EUR 67 million in the first half of 2019
As part of the planned acquisition of ADF/IDF, acquisition costs of EUR 9.6 million were incurred in the first half of 2019. Symrise is therefore using normalized results (EBIT(N) / EBITDA(N)) adjusted for these one-off, non-recurring specific influences.
In the first six months of 2019, the Group generated normalized earnings before interest, taxes, depreciation and amortization (EBITDA(N)) of EUR 351 million. The EBITDA(N) thus increased by 10.8 % compared to the same period of the previous year. The main driver of this development was profitable sales growth.
The normalized net income for the first six months of 2019 amounted to EUR 153 million, which was EUR 11 million above the figure from the previous year of EUR 142 million. Normalized earnings per share reached EUR 1.14, after EUR 1.10 in the first half of the previous year (+4 %). Earnings per share including one-time expenses for the ADF/IDF acquisition were EUR 1.09.
Cash flow from operating activities
At EUR 141 million, cash flow from operating activities for the first half of 2019 was EUR 10 million lower than in the previous year (EUR 151 million). The main reasons for this were an increase in working capital (in particular due to period-related lower trade payables) and higher tax payments in the reporting period, which more than offset the higher profits and lower capital expenditures than in the same period of the previous year.
Net debt decreased by EUR 207 million to EUR 1,173 million compared to the reporting date of
Outlook: Targets confirmed and profitability specified
Overall, the Group is very well positioned to achieve its targets with its global presence, diverse portfolio and broad customer base. Against the background of rising demand for important raw materials, the expansion of our own backward integration will continue to play an important role.
At the beginning of the year, Symrise presented its long-term targets. They underpin the company's ambitions and now extend to the end of fiscal year 2025. Symrise intends to increase sales to about EUR 5.5 to 6.0 billion by then. This increase is to be achieved through annual organic growth of 5 to 7 % (CAGR) as well as additional targeted acquisitions.
Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients and raw materials, as well as functional ingredients. Its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements and pet food.
Its sales of approximately EUR 3.2 billion in the 2018 fiscal year make Symrise a leading global
Symrise works with its clients to develop new ideas and market-ready concepts for products that
Document title: Symrise Factsheet H1 2019
|Phone:||+49 (0)5531 90 0|
|ISIN:||DE000SYM9999, DE000SYM7787, DE000SYM7704|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||853785|
|End of News||DGAP News Service|
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