AI assistant
Symrise AG — Earnings Release 2013
May 7, 2013
423_rns_2013-05-07_a7099e52-26c4-4751-bcae-5b964284027d.html
Earnings Release
Open in viewerOpens in your device viewer
News Details
Corporate | 7 May 2013 07:00
Symrise AG Shows Strong Business Development in Q1/2013
Symrise AG / Key word(s): Quarter Results
07.05.2013 / 07:00
Holzminden, May 7, 2013
Report on the First Quarter of 2013
Symrise Shows Strong Business Development in Q1/2013
– Sales increase of 8 % at local currency
– Sales up 11 % in Emerging Markets
– EBITDA rises to EUR 93 million
– EBITDA margin of 20.3 %
Symrise AG has begun Fiscal Year 2013 with impressive growth. The Group saw dynamic demand in both divisions and increased sales to EUR 458 million in the first quarter of 2013 (Q1 2012: EUR 433 million). This corresponds to a growth of 6 % (8 % at local currency) compared to the prior-year-quarter. Symrise improved its earnings before interest, taxes, depreciation and amortization (EBITDA) to EUR 93 million and was highly profitable with an EBITDA margin of 20.3 %.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: ‘Symrise is celebrating its ten-year anniversary in 2013. The start to our anniversary year was a complete success: Once again, we enjoyed robust growth – growing faster than the market. Along with solid development in Emerging Markets, we also benefited from considerable growth impetuses in the established markets. Our profitability remained at a good level with an EBITDA margin of 20.3 %. With the acquisition of the US fragrance manufacturer Belmay, we took another strategic step towards further expanding our product portfolio and market presence in North America. We are therefore confident for the upcoming months of 2013.’
Sales Increase of 8 % at Local Currency
Symrise increased Group sales by 6 % in the first three months to EUR 458 million (Q1 2012: EUR 433 million). At local currency, this amounts to 8 % growth. In addition to good utilization rates in both divisions, the Group benefited from the expansion of its menthol capacities which was realized in 2012; the new capacities will make full contributions to growth this year.
At regional level, Symrise realized its strongest sales increase in Asia/Pacific with 9 % growth (12 % at local currency). The second largest gains were made in North America, with a sales increase of 8 % (9 % at local currency). The EAME region made a pleasing recovery, particularly in the Emerging Markets of Eastern Europe, and expanded at a rate of 4 % (5 % at local currency). Latin America, which grew at an above-average rate in the previous quarters, increased its sales by 3 % (10 % at local currency).
EBITDA Increases by 6 % to EUR 93 Million
The positive sales developments are also reflected in the earnings performance. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 6 % to EUR 93 million during the reporting period (Q1 2012: EUR 88 million). The EBITDA margin amounted to 20.3 % (Q1 2012: 20.3 %) and Symrise was therefore once again among the most profitable companies in the industry.
Net income for the period rose by 7 % to EUR 46 million (Q1 2012: EUR 43 million). Earnings per share correspondingly rose to EUR 0.39 after EUR 0.36 in the first quarter of 2012.
Cash Flow from Operating Activities Climbs to EUR 26.0 Million
Cash flow from operating activities amounted to EUR 26.0 million (Q1 2012: EUR 19.7 million) and particularly reflected the high utilization rates seen in the first quarter. The ratio of net debt including pension provisions to EBITDA remained nearly unchanged from the end of 2012 at 2.5. It therefore is within the targeted corridor of 2.0 to 2.5.
Emerging Markets Grow By 11 %
Symrise also benefited from the steady expansion of its presence in Emerging Markets during the first quarter. Sales in these markets increased by 11 % at local currency. The Group generated 48 % of its total sales (Q1 2012: 46 %) in Emerging Markets.
Scent & Care Division
The Scent & Care division increased sales across every region, with sales up by 9 % at EUR 245 million. At local currency, this corresponds to a growth of 11 %.
Especially strong impulses were seen in the Aroma Molecules business unit, which realized substantial double-digit growth. In the Fragrances business the division also posted double-digit sales growth.
The greatest sales increase in the Scent & Care division was achieved in Asia/Pacific and Latin America, each region posting a 15 % sales growth at local currency. In both regions, Symrise especially benefited from increased demand in the Fragrances, Oral Care and Aroma Molecules application areas. In North America, sales increased by 12 % at local currency and were positively influenced by the Aroma Molecules and Fragrances business units. The EAME region experienced a pleasing recovery compared to the prior-year-quarter and posted sales growth of 7 % at local currency.
Scent & Care increased its EBITDA by 8 % to EUR 48.9 million (Q1 2012: EUR 45.2 million). The EBITDA margin amounted to 20.0 % (Q1 2012: 20.1 %).
Flavor & Nutrition Division
Flavor & Nutrition generated sales of EUR 213 million in the first quarter of 2013 (Q1 2012: EUR 208 million). This corresponds to an increase of 2 % (4 % at local currency).
Every application area contributed to this growth, with beverages and sweets making particularly solid gains. The Emerging Markets also made significant contributions.
Asia/Pacific was the strongest growing region, with sales up 8 % at local currency. The region particularly benefited from high demand in the beverage segment as well as a snack food initiative started last year. The second strongest region was North America, which posted a sales increase of 4 % at local currency. In Latin America, performance was more moderate following above-average growth in the previous two years. Sales rose 3 % at local currency and were especially influenced by high demand from global and regional customers for savory products and sweets. The EAME region posted good growth, particularly in the country markets of Eastern Europe. Sales in the region rose by 3 % at local currency.
Flavor & Nutrition increased its EBITDA by 3 % to EUR 43.9 million (Q1 2012: EUR 42.6 million). The EBITDA margin increased from 20.5 % in the previous quarter to 20.6 %.
Outlook
For Fiscal Year 2013, Symrise is expecting an advantageous development in consumer confidence. Even though, some European countries continue to be impacted by the Euro crisis, Symrise expects to see an overall positive economic climate in its sales markets. Accordingly, the Group is aiming to once again outperform the growth of the global fragrances and flavors market, which is expected to expand by between 2 and 3 %.
Along with the publication of its results for Fiscal Year 2012, Symrise published a long-term outlook for the first time. Compared to the 2012 figures, the Group aims to increase sales by EUR 1 billion until 2020. This corresponds to an average annual sales growth (CAGR) of 5 to 7 %. Symrise also remains committed to profitable growth. The Group aims to increase its EBITDA to more than EUR 500 million by the end of 2020. The EBITDA margin should be within the range of 19 to 22 %.
Key Figures Of The Group
| EUR Million | Q1 2012(1) | Q1 2013 | change in % | CHANGE IN % at local currency |
| Sales | 432.6 | 457.6 | 5.8 | 7.9 |
| EBITDA | 87.8 | 92.8 | 6 | 7 |
| EBITDA margin in % | 20.3 | 20.3 | ||
| EBIT | 67.0 | 71.6 | 7 | 8 |
| EBIT margin in % | 15.5 | 15.6 | ||
| Net income for the period | 43.0 | 46.0 | 7 | |
| Earnings per share in EUR | 0.36 | 0.39 | 8 | |
| Balance sheet total (DEC. 31, 2012) | 2,150.2 | 2,301.6 | 7 | |
| Equity ratio in % (DEC. 31, 2012) | 40.9 | 41.5 | ||
| CAPEX | 18.4 | 83.1 | ||
| Net debt (incl. pension provisions)/EBITDA (ratio) | 2.4 | 2.5 | ||
| Operating cash flow | 19.7 | 26.0 | 32 | |
| Employees FTE(2) | 5,669 | 5,805 | 2 | |
| Scent & Care | ||||
| Sales | 224.9 | 245.0 | 9.0 | 11.1 |
| EBITDA | 45.2 | 48.9 | ||
| EBITDA margin in % | 20.1 | 20.0 | ||
| Flavor & Nutrition | ||||
| Sales | 207.8 | 212.6 | 2.3 | 4.3 |
| EBITDA | 42.6 | 43.9 | ||
| EBITDA margin in % | 20.5 | 20.6 |
(1) previous year’s figures have been adjusted as a result of changes to accounting policies
(2) not including apprentices and trainees; FTE = Full Time Equivalent
About Symrise
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.
Its sales of EUR 1.735 billion in 2012 place Symrise among the top four companies in the global flavors and fragrances market. Headquartered in Holzminden, Germany, the Group is represented in over 35 countries in Europe, Africa, the Middle East, Asia, the United States and Latin America.
Symrise works with its clients to develop new ideas and market-ready concepts for products that form an indispensable part of everyday life. Economic success and corporate responsibility are inextricably linked as part of this process. Symrise thus takes sustainability into account in every part of its corporate strategy. The company was awarded the German Sustainability Award in 2012.
Symrise – always inspiring more.
www.symrise.com
Contact Media :
Bernhard Kott
Phone +49 (0)5531 90-1721
Contact IR:
Tobias Erfurth
Phone +49 (0)5531 90-1879
End of Corporate News
07.05.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
| Language: | English |
| Company: | Symrise AG |
| Mühlenfeldstraße 1 | |
| 37603 Holzminden | |
| Germany | |
| Phone: | +49 (0)5531 90 0 |
| E-mail: | [email protected] |
| Internet: | www.symrise.com |
| ISIN: | DE000SYM9999 |
| WKN: | SYM999 |
| Indices: | MDAX |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart |
| End of News | DGAP News-Service |
| - - - |
| 209882 07.05.2013 |