Symrise continued its profitable growth trajectory in the first nine months of the year, achieving organic sales growth of 11.1 %. Considering portfolio and exchange rate effects, Group revenue rose to EUR 3,824 million in the first nine months (9M 2023: EUR 3,610 million), a plus of 5.9 % compared to the year-ago period. Both segments contributed to the positive development and increased sales in a global economic environment that remained challenging. In the third quarter, overall sales increased organically by 10.2 %. Despite negative exchange rate effects of 4.0 %, sales grew by 5.2 % in the reporting currency. Against the backdrop of robust organic growth, Symrise has specified its organic growth target, sales expected to come in at around 7 %.

Jean-Yves Parisot, CEO of Symrise AG: “Symrise was able to seamlessly continue the positive business development of the past months in the third quarter. Despite the current volatile market environment due to geopolitical tensions and continued inflation pressure, we are confident for the rest of the year and expect robust demand. Our diversified portfolio and broad, international footprint will continue to help us realise our growth potential and create sustainable value this year. We are firmly convinced that we have set the right course for the future.”

Sales development by region

The strongest organic growth was recorded in the Latin America region with 27.4 %, followed by the Asia/Pacific region with 11.2 % and EAME (Europe, Africa, Middle East) with 11.1 %. The main growth drivers were the Food & Beverage, Fragrance, Aroma Molecules and Pet Food business units. The North America region achieved organic growth of 2.3 %, driven primarily by the Food & Beverage and Aroma Molecules business units.

High growth in food, beverages and pet food

The Taste, Nutrition & Health segment increased sales organically by 10.4 % in the first nine months of the current fiscal year. In the third quarter, organic growth was 11.3 %. Taking into account portfolio and currency effects, the segment’s revenue rose to EUR 2,349 million in the first nine months (9M 2023: EUR 2,267 million). The portfolio effect from the sale of the beverage trading business in the UK within the Food & Beverage business unit had a negative impact of EUR 27 million on sales development.

The Food & Beverage division achieved double-digit organic growth in percentage terms. Strong growth impulses came from the application areas for sweet and savory products and beverages. All four regions, especially the EAME region, achieved high growth. The Naturals application area increased its revenues, especially in the North America and EAME regions.

The Pet Food division also achieved double-digit organic growth in percentage terms in the first nine months. Sales development was particularly dynamic in the Asia/Pacific and Latin America regions, with double-digit organic growth.

Sales development in the Aqua Feed business unit recorded declining organic growth. As part of the further portfolio streamlining with a focus on high-margin growth areas, Symrise intends to sell the business.

The probiotics business, which includes the majority stake in the listed company Probi AB, Lund, Sweden, generated slight growth, driven by the EAME region.

Strong sales growth in Consumer Fragrance and significant recovery in Aroma Molecules

The Scent & Care segment, which manages the fragrances, perfumery applications and cosmetic active ingredients business, achieved organic sales growth of 12.2 % in the first nine months and 8.4 % in the third quarter respectively. Taking into account portfolio and currency effects, revenue for the first nine months amounted to EUR 1,475 million (9M 2023: EUR 1,343 million).

The Fragrance division increased its sales organically in the double-digit percentage range in the first nine months. In particular, the Consumer Fragrance application area achieved double-digit percentage growth. The EAME, Asia/Pacific and Latin America regions in particular experienced very high market dynamics. The Fine Perfumery application area also continued its very positive development and achieved high single-digit percentage organic growth. Here, the Latin America and Asia/Pacific regions recorded good growth. The Oral Care application area achieved single-digit percentage organic growth, with good growth especially in the North America and Asia/Pacific regions.

Sales in the Aroma Molecules division recovered significantly in the first nine months of the current year. While the market environment continues to prove challenging, the resumption of production in Colonels Island, USA has resulted in a significant year-on-year increase in revenue. High double-digit growth figures were achieved in all regions.

Sales in the Cosmetic Ingredients division continued to develop strongly with high single-digit percentage organic growth. Revenues increased significantly in the EAME, Asia/Pacific and Latin America regions. Only the North America region showed just a slight year-on-year growth. The application areas for micro-protection and actives and botanicals also recorded very strong growth impulses.

Symrise specifies growth target for 2024

Based on the good business performance in the first nine months, Symrise is specifying its sales target for the full year 2024. The Group is now aiming for organic sales growth of around 7 %. The Group’s long-term organic growth expectation of 5 % to 7 % (CAGR) remains unchanged. The long-term EBITDA margin is expected to be in the range of 20 % to 23 %.

Symrise AG successfully continued its profitable growth course in the third quarter of 2021. The Group recorded excellent organic sales growth of 8.3 %. In the first nine months of the current financial year, growth even amounted to 9.2 %. Taking into account the portfolio effect from the acquired fragrances business of Sensient as well as currency translation effects, Group sales rose to € 2,883 million during the reporting period (9M 2020: € 2,703 million), up 6.7 % compared to the prior-year period and 10.6 % in the third quarter. Both segments contributed to this positive result.

“We can look back on an exceptionally successful third quarter of 2021. As a result of the progress made in battling the coronavirus pandemic, demand has continued to increase significantly. The demand was particularly high for applications associated with more travel or leisure activities – including, for example, sun protection products, fragrances, but also applications for beverages and culinary products. We are extremely satisfied with our business development since the beginning of the year and we are continuing our accelerated growth path,” said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. “This is why we are once again raising our sales forecast to around 9 %. We are confident that we can achieve even more growth than forecasted after six-months and we will make the best possible use of the remaining weeks in 2021 to achieve this target.”

Applications for beverages and pet food drive strong sales growth for Flavor & Nutrition segment

The Flavor & Nutrition segment increased organic sales by a strong 10.0 % compared to the previous year. In the third quarter, organic growth amounted to 9.7 %. Taking currency translation effects into account, segment sales increased to € 1,752 million (9M 2020: € 1,646 million). Flavor & Nutrition also saw a normalization of consumer behavior owing to progress in combatting the coronavirus pandemic. The increase in out-of-home consumption exerted a positive impact and led to strong demand for beverages. At the same time, the increasing number of households with pets across the world generated high demand for pet food applications, resulting in strong growth in this business unit.

Applications for beverages recorded sales growth in the double-digit range. In all markets, growth was particularly driven by the strong increase in demand for beverages destined for out-of-home consumption.

Sales in the Savory business unit in all regions slightly exceeded the exceptionally high prior-year level, which was characterized by the particularly high demand during the initial months of the coronavirus pandemic.

Sales for sweet product solutions were slightly below the prior-year level. Medium single-digit growth driven by new customers in Latin America and Asia/Pacific was offset by the current low price level for vanilla.

The Pet Food business unit continued its strong growth compared to the already excellent prior-year period and increased sales in the double-digit percentage range. The sales development was particularly dynamic in the national markets of Mexico, Russia and South America.

The Food business unit achieved modest organic growth. This was driven by rising sales in Western Europe, while sales in North America declined slightly.

The ADF/IDF Group also developed extremely well, achieving double-digit organic sales growth. The business recorded strong growth in its home market, the American domestic market.

The Probiotics business unit, including the majority shareholding in the Swedish company Probi AB, did not maintain the strong level of the previous year and recorded a slight decline in sales. This is balanced by strong project vitality with numerous new product launches of customers.

Symrise once again raises its sales forecast for 2021

With its global presence, the continually growing, diversified portfolio and its broad customer base, Symrise considers itself as being robustly positioned despite the ongoing challenging market environment. Symrise has full delivery capability and can reliably meet the strongly rising demand in the wake of successful combatting of the coronavirus pandemic.

Based on the positive business development in the first nine months, Symrise is once again raising the sales target and now expects organic growth of around 9 % for the full year 2021. This corresponds to an increase of around two percentage points compared to the raised forecast of 7 % in August 2021. Symrise thereby highlights its aspiration to once again significantly outperform growth in the relevant market for fragrances and flavors during the current financial year. In the present business environment, current estimates assume market growth of 3 to 4 %.

Furthermore, Symrise is adhering to its profitability target for the financial year 2021 and is aiming for an EBITDA margin of more than 21 %.

The medium-term targets continue to be unchanged. The company expects to increase its sales to between € 5.5 and € 6.0 billion by the end of the financial year 2025. Symrise intends to achieve this increase with annual organic growth of 5 to 7 % (CAGR) and complementary strategic acquisitions. Profitability over the medium term is projected in the target corridor of 20 to 23 %.