Symrise Beats 2010 Sales And Earnings Goals
Symrise AG has exceeded its sales and earnings goals for Fiscal Year 2010. The Group benefited from the…
Symrise AG has exceeded its sales and earnings goals for Fiscal Year 2010. The Group benefited from the global economic recovery and strong boost in demand, as well as the excellent positioning in emerging markets and in the business with large customers. Symrise increased sales by 15.4 % to EUR 1.57 billion and exceeded its target to achieve sales growth of at least 8 %. The EBITDA margin rose to 21.1 % and bet the aspired mark of more than 20 %. On another positive note, Symrise succeeded in further reducing its net debt thanks to operating cash flow being at a high level again.
Flavor & Nutrition – 22.2 % EBITDA margin
The Flavor & Nutrition division also grew positively in all application areas. Sales rose 13 % (10 % at local currency) to EUR 767 million (2009: EUR 680 million). Growth was particularly driven by high demand in the beverage area, as well as by business with Top 10 customers.
Business was most dynamic in Latin America, where Flavor & Nutrition sales rose 15 % at local currency. Growth was also strong in Asia/Pacific and EAME, both of which reported 10 % sales growth at local currency. In Asia/Pacific, Symrise’s global initiative “Naturally Citrus” provided for strong growth, especially in its beverages applications. Growth in the EAME region was driven by the established Western European markets as well as by Eastern Europe and the Gulf region. High demand in Russia confirmed Symrise’s decision to expand its footprint in this market. Symrise had acquired an existing facility from the Russian Aromaros-M group at the beginning of 2010, which it subsequently expanded and took into operation in December. In North America, Flavor & Nutrition sales grew 7 % at local currency. In doing so, the business benefited particularly from activities with major customers which were further expanded by a new core listing in June.
Flavor & Nutrition EBITDA rose 25 % to EUR 170 million (2009: EUR 137 million). With the EBITDA margin increasing to 22.2 % (2009: 20.1 %) the division was able to improve its already high profitability further.