Symrise AG
Symrise delivers reliable, profitable growth during the exceptional year 2020 (news with additional features)
DGAP-News: Symrise AG
/ Key word(s): Annual Results
Symrise AG reliably continued its profitable growth course in 2020 despite the challenging environment. The Group increased its sales by 3.3 % to € 3,520 million taking into account portfolio and currency translation effects. In organic terms, sales went up by 2.7 %. The Group thus significantly outperformed market growth, which is estimated at 1.0 % for 2020. At the same time, Symrise stayed behind its defined sales target, as the business development in the month of December was impacted by a criminal cyber-attack. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 5.8 % to € 742 million in 2020. Profitability reached an outstanding level with an EBITDA margin of 21.1 % and was within the expected margin range. Against the backdrop of the good performance, the Executive Board and the Supervisory Board propose a dividend increase to € 0.97 for the fiscal year 2020 to the annual general meeting. “In the historically exceptionally difficult year 2020, Symrise AG achieved a very solid result. Despite the shifts in demand resulting from the global coronavirus pandemic, we did an excellent job of staying on track until our progress was thwarted by a criminal cyber-attack on the final miles. Even though we were not able to fully achieve our growth targets, we nevertheless kept our profitability at a high level and continued to increase earnings. Once again, this success proves that we have a robust business model and that our dedicated employees reliably create value. We therefore also want our shareholders to participate in the success of the Company for 2020. The Executive and Supervisory Boards will propose a dividend of € 0.97 to the annual general meeting. This is the eleventh dividend increase in succession,” said Dr. Heinz Jürgen Bertram, CEO of Symrise AG. “Battling the pandemic will continue to define people’s everyday lives and economic conditions in 2021. However we look with confidence into the current financial year and expect reliable demand. Against this background, we are targeting organic sales growth of 5 to 7 % and an EBITDA margin of around 21 %.” Symrise also increased its profitability in the fiscal year 2020. The EBITDA margin rose to 21.1 % and exceeded the prior-year figure (2019 EBITDA(N) margin: 20.6 %). This means that once again, Symrise ranked among the most profitable companies in the sector. Net income for the period rose by € 11 million to € 307 million (2019 normalized: € 296 million). Earnings per share increased to € 2.27 (2019 normalized: € 2.20) accordingly. Against the backdrop of this positive development, the Executive Board and the Supervisory Board will propose to the annual general meeting a dividend increase to € 0.97 per share for the fiscal year 2020 (2019: € 0.95). Net debt including leasing liabilities decreased by € 269 million to € 1,348 million (2019: € 1,617 million) in the fiscal year 2020 as a result of the strong operating cash flow. The ratio of net debt (including interest-related increased provisions for pensions and similar obligations) and EBITDA was below the prior-year figure and amounted to 2.7 (2019: 3.2) on 31 December 2020 despite increased provisions for pensions. The equity ratio decreased year-on-year from 41.3 % to 39.8 % due to currency effects. Symrise sees itself as very well positioned to sustainably advance future development of its business. Scent & Care generated EBITDA of € 272 million in 2020 after € 278 million in the previous year. The EBITDA margin of 19.8 % was slightly above the level in 2019 (19.6 %). In November 2020 Symrise signed a purchase agreement for the acquisition of the fragrance and aroma chemicals business of Sensient Technologies Corporation. Symrise is thereby continuing to expand its leading position as a provider of fragrance and aroma chemicals for applications in bodycare and household products in the future. This step will also strengthen the Company’s presence especially in EAME and Latin America. EBITDA in the Flavor segment amounted to € 267 million (2019: € 268 million). Profitability remained at a very high level with an EBITDA margin of 21.8 % (2019: 21.4 %). The Nutrition segment increased EBITDA to € 204 million and thereby significantly exceeded the normalized prior-year figure (2019 EBITDA(N): € 155 million). The EBITDA margin increased, also supported by ADF/IDF, to 22.0 % (2019 EBITDA(N) margin: 21.2 %). Symrise regards the underlying growth drivers for its own business as being intact and believes it is very well positioned to also realize its medium-term forecast. The Company therefore confirms its target of achieving average annual growth of between 5 and 7 % (CAGR) by the end of 2025. Symrise has aligned its business model along key global megatrends, including an increasing world population, economic progress in emerging markets and the trend toward healthier nutrition and natural ingredients. Thanks to its global positioning, its highly diversified portfolio and its broad customer base covering a wide range of varied market segments, Symrise regards itself as being very well positioned to meet the emerging demand. Furthermore, the Group will continue to invest in growth projects, while at the same time maintaining disciplined cost management and focusing on business with strong margins. For Symrise the priority is on organic growth which can, however, be complemented by targeted value-adding acquisitions as well as by strategic partnerships.
About Symrise:
Additional features: File: Symrise Factsheet FY 2020 ENG
09.03.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Symrise AG |
Mühlenfeldstraße 1 | |
37603 Holzminden | |
Germany | |
Phone: | +49 (0)5531 90 0 |
E-mail: | ir@symrise.com |
Internet: | www.symrise.com |
ISIN: | DE000SYM9999, DE000SYM7787, DE000SYM7704 |
WKN: | SYM999 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1174011 |
End of News | DGAP News Service |