Symrise Raises Full-year Guidance Again
PARIS -— On the back of a strong third quarter, Symrise AG has raised its full-year 2022 guidance yet again.
The German fragrance and flavors supplier said in a statement on Wednesday that sales growth across each of its divisions was more robust than expected, up 13.6 percent overall on an organic basis to 975.2 million euros in the three months ended Sept. 30. In reported terms, sales rose 26.4 percent.
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Symrise’s Scent and Care division’s activity was spurred by the fragrance and fine fragrance activities, while demand for hygiene and oral care products was lower than in 2021. The Cosmetic Ingredients activity posted double-digit organic growth, and sun protection products notched up dynamic wins. Overall, the division’s sales reached 382.7 million euros, a 6.7 percent organic on-year increase.
Also in the third quarter, Symrise’s Taste, Nutrition and Health division’s sales were up 18 percent on an organic basis to 592.5 million euros.
In the first nine months of this year, the company’s sales totaled 3.49 billion euros, a 11.3 percent improvement in organic terms and a 21.2 percent rise on a reported basis versus the same prior-year period.
“In a still challenging and volatile market environment, we once again managed to continue our growth course,” Heinz-Jürgen Bertram, chief executive officer of Symrise, said in the statement. “Our diversified portfolio as well as our broad regional presence and customer base were key factors in achieving this. Furthermore, materially increasing demand in our core competencies such as cosmetics and pet food has contributed to significant organic growth.”
Given the strong turnout, Symrise now aims for organic sales growth of more than 10 percent — rather than the formerly announced “significantly above 7 percent” — and maintained an expected EBITDA margin of around 21 percent for 2022 overall.
“The aim is to continue to combine organic and inorganic growth in the form of targeted strategic acquisitions together with strict cost management and price increases,” Symrise said.
The company reconfirmed, as well, its mid-term goals for 2025. By then, the group aims to grow its sales to between 5.5 billion euros and 6 billion euros, in part by a compound annual growth rate of 5 percent to 7 percent and acquisitions. Symrise expects an EBITDA margin of 20 percent to 23 percent in the long term.