Symrise AG, a leading global supplier of fragrances and flavours, cosmetic and active ingredients as well as functional products, continued to significantly increase its sales and earnings growth in the 2024 financial year despite challenging economic conditions. Symrise confirms its mid-term growth and profitability targets until 2028.

The Symrise Group generated sales of EUR 4,999 million, an increase of 5.7 % in the reporting currency. Excluding portfolio and currency effects, organic sales growth amounted to 8.7 %. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 1,033 million, up EUR 130 million from the previous year’s figure of EUR 903 million¹. This corresponds to a margin of 20.7 % (2023: 19.1 %¹).

Sales development in the regions

Business in the Europe, Africa, Middle East (EAME) region performed well, with sales growing organically by 10.9 %. Sales in North America were positively impacted by the resumption of production at the Colonel Island site. After a decline in sales in the previous year, organic sales growth of 1.5 % was achieved in 2024. The Asia/Pacific region achieved organic sales growth of 9.3 % year-on-year. Sales in Latin America were very dynamic, with organic growth of 15.2 %.

Earnings performance and net income

An important driver of the very positive development of earnings was the profitable sales growth and the execution of the efficiency program. The gross margin reached 39.3 % in 2024, an increase of 2.5 percentage points versus the previous year (2023: 36.8 %²).

Earnings before interest, taxes, depreciation and amortization (EBITDA) grew to EUR 1,033 million, an increase of EUR 130 million versus the previous year’s figure of EUR 903 million . This corresponds to a margin of 20.7 % (2023: 19.1 %2).

Net income attributable to shareholders of Symrise AG amounted to EUR 478 million and was EUR 138 million higher than in the previous year (2023: EUR 340 million). Earnings per share amounted to EUR 3.42 and were EUR 0.98 above the previous year’s figure of EUR 2.44.

Cash flow, net debt, and equity ratio

Operating cash flow was significantly higher than in the previous year and amounted to EUR 895 million (2023: EUR 720 million). The operating cash flow ratio as a percentage of sales was 17.9 %.

Business free cash flow, which is an important internal performance indicator consisting of EBITDA, capital expenditures (including cash effects from leasing) and changes in working capital, increased significantly to EUR 680 million in the financial year (2023: EUR 553 million²). The business free cash flow ratio improved to 13.6 % (2023: 11.7 %²) of sales.

Net debt decreased by EUR 330 million to EUR 1,836 million compared with the reporting date of December 31, 2023. The ratio of net debt including lease liabilities to EBITDA was thus 1.8. Including pension and lease liabilities, net debt amounted to EUR 2,343 million, corresponding to a ratio of net debt (including lease liabilities and provisions for pensions and similar obligations) to EBITDA of 2.3.

The equity ratio of 48.3 % was higher than in the previous year (2023: 47.0 %), a very solid basis for continuing to grow the business in the long term.

Segment Taste, Nutrition & Health

The Taste, Nutrition & Health segment achieved organic sales growth of 7.8 %. Taking into account portfolio and exchange rate effects, the segment’s sales amounted to EUR 3,091 million in reported currency, an increase of 3.8 %. The negative portfolio effect from the sale of the beverage trading business in the UK in the Food & Beverage division amounted to around EUR 38 million.

In Food & Beverage the application areas for savory products and beverages developed very well and achieved double-digit organic growth. In particular, the EAME (Europe, Africa, Middle East) and Asia/Pacific regions achieved high growth rates. The Naturals and Sweet application areas achieved low single-digit percentage growth with strongest growth in the EAME and North America regions.

The Pet Food business achieved single-digit organic growth. Sales development was particularly dynamic in the Latin America and Asia/Pacific regions, including China, with double-digit organic growth. In EAME, Turkey, Belgium and Spain in particular showed high growth.

The sales development of the Aqua Feed business unit recorded declining organic growth in the financial year. As part of the further portfolio streamlining with a focus on high-margin growth areas, Symrise intends to sell the business in Costa Rica and Ecuador.

EBITDA in the Taste, Nutrition & Health segment amounted to EUR 686 million in the reporting year, up on the prior-year figure (2023: EUR 627 million3). The increase is mainly due to profitable sales growth and an increased efficiency. The EBITDA margin of 22.2 % was significantly above the previous year’s level (2023: 21.0 %³).

Confirmation of long-term growth and profitability targets

Symrise has confirmed its growth and profitability targets for 2025. The Group continues to expect to grow faster than the relevant market. The projected long-term growth of the relevant market is about 3 % to 4 % globally. The Group’s long-term growth expectation of 5 % to 7 % (CAGR), which is also expected to be achieved in 2025, remains unchanged.

The Group is aiming for an EBITDA margin of around 21 % for 2025, In the medium term, a range of 21 % to 23 % is targeted. For the Business Free Cashflow, a ratio in relation to sales of around 14 % is targeted in 2025.

¹Attributable to shareholders of Symrise AG
²Undiluted
³Including lease obligations

Azelis, a leading global innovation service provider in the specialty chemicals and food ingredients industry, announces that it has reached an agreement to acquire a majority stake in Ashapura Aromas Private Limited, a leading distributor of ingredients in the flavours & fragrances market in India.

This acquisition provides Azelis with a strong F&F platform in Asia Pacific, creating a global F&F network, following its 2021 acquisitions of Vigon in the US and Quimdis in France, serving the Americas and EMEA regions respectively. Ashapura’s extensive product portfolio strategically complements the group’s lateral value chain in the fast-growing F&F market segment, strengthening the offering and technical expertise Azelis provides to customers.

Founded in 2003 and headquartered in Mumbai, Ashapura is the leading distributor of F&F ingredients in India, representing more than 225 principals with well-established partnerships and serving over 900 customers globally through the breadth and depth of its portfolio of products. Ashapura’s 100 plus employees will join Azelis, along with founders and owners Ajaykiran and Nayan Gudka, who will remain to lead the business post-integration. The transaction is expected to close before the end of the third quarter, after fulfilment of customary closing conditions.

The Flavors & Fragrances (F&F) business unit of specialty chemicals company LANXESS is increasing prices worldwide for its entire portfolio of preservatives, benzoates, intermediates, aroma chemicals and multifunctionals with immediate effect. Customers will be contacted individually regarding the specifics of the measure as it applies to their products or regions.

The reasons for the adjustments are, in particular, unprecedented challenges with a significant impact on logistics and production. Fragile supply chains, dramatically increased raw material and energy costs – not least as a result of the war in Ukraine with oil and gas prices at record levels – bring significant consequences for the entire supply chain.

Offerings from F&F are primarily used to provide flavour, fragrance, shelf life and essential performance characteristics in a wide variety of consumer products, such as food and beverages.

August 3, specialty chemicals company LANXESS completed the acquisition of Emerald Kalama Chemical. The U.S.-based company is a world-leading manufacturer of specialty chemicals. LANXESS signed a purchase agreement on February 14, 2021. All required regulatory approvals have been received. LANXESS financed the purchase price of around USD 1.04 billion (EUR 870 million) from liquid funds.

In 2020, Emerald Kalama Chemical generated global sales of around USD 425 million (EUR 375 million) and EBITDA pre-exceptionals of around USD 90 million (EUR 80 million). Seventy-five percent of sales were attributable to business with specialty products for the consumer care market, especially products for flavors and fragrances as well as preservatives for use in food, household products and cosmetics. One quarter of sales originated from business with specialty chemicals for industrial applications. With the closing of the transaction, LANXESS grows by around 470 employees and the three production sites in Kalama/Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain).

New Flavours & Fragrances business unit

This second-largest acquisition in its company history elevates LANXESS to being one of the leading providers of products for flavours and fragrances for the consumer sector. Products such as aldehydes and benzoates are distinguished by their premium quality, safety and unique flavour profiles.

The main areas of application for the flavourings and fragrances are personal care products, cosmetics and exclusive fragrances, as well as food and drinks. The products in the new LANXESS portfolio encompass over 30 aroma chemicals, providing a range of earthy, floral, fruity, spicy and herbal notes.

Benzaldehyde, for example, gives items such as food, drinks, personal care products and cosmetics a sweet, almond-like flavour and fragrance. It is a key component in the synthesis of rose and jasmine fragrances in the perfume industry.

LANXESS is incorporating the flavourings and fragrances business into the newly established Flavours & Fragrances business unit led by Holger Hueppeler. “We at LANXESS have decades of experience in technology and production to reliably supply our customers with synthetic chemicals and deliver consistently high-quality ingredients that formulators of flavourings and fragrances can rely on,” says Hueppeler, who began his career in 1989 at Bayer and has amassed over three decades of experience in marketing, sales and logistics.

The new business unit will also comprise benzyl alcohol business. The product is used as an ultra-pure preservative for injection solutions and cosmetics and as a synthetic chemical. Other areas of application include the production of fragrances and flavourings and agricultural chemicals.

Nature-identical preservatives for food and household and care products

The acquisition of Emerald Kalama also enables LANXESS to significantly expand its portfolio of preservatives. Key products for the food industry include sodium and potassium benzoate under the Kalama, Purox and Kalaguard brands. They act as gentle preservatives in foods, drinks, personal care and home care products with a pH level of up to 6.5.

Sodium and potassium benzoate are used primarily as nature-identical preservatives and safely inhibit the growth of bacteria, yeast and mold. They are approved as food additives and preservatives by the U.S. Food and Drug Administration (FDA) and are used in food and drink applications. The new products make perfect additions to LANXESS’s existing range of drink stabilizing agents under the Velcorin and Nagardo brands.