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

AGRANA Group recently confirmed its annual guidance on 10 October 2024 in the context of publishing its results for the first half of 2024/25. Significantly lower EBIT* was forecast for the 2024/25 financial year compared to the prior year (2023/24: € 151.0 million), with a decline of 10 % to 50 %.

It had already been communicated that, due to higher sugar inventories and sharply falling sugar prices (in the EU and globally), AGRANA’s Sugar segment in particular would continue to face very challenging times in the coming months. Since the full-blown start of the sugar beet processing campaign in October 2024, it has also become evident that the campaign costs of the new 2024/25 sugar marketing year will be higher than expected. In the meantime, the evaluation of September’s flooding damages (primarily in Austria) has also been largely completed. The negative impact on earnings in the current financial year has been higher than originally forecast, mainly due to the production stoppage at the plant in Pischelsdorf, Austria, in the Starch segment.

These developments are primarily responsible for the forecast now that the 2024/25 financial year will be characterised by a very significant decline in EBIT* of more than 50 % at the Group level. The operating profit before exceptional items and results of equity-accounted joint ventures is expected to be in the range of € 55 million to € 75 million.

The publication of the results for the first three quarters of 2024/25, including details of the outlook for all segments in the remainder of the 2024/25 financial year, will be on 14 January 2025 as scheduled.

*EBIT: operating profit after exceptional items and results of equity-accounted joint ventures

GNT has achieved a 22 % reduction in carbon intensity at its EXBERRY^® factories since 2020, the company’s latest sustainability report shows.

GNT, which creates EXBERRY^® colours from non-GMO fruit, vegetables, and plants, has set out 17 ambitious targets to optimise its environmental and social impacts over the course of the current decade.

In 2023, GNT’s total carbon footprint at its production sites in the Netherlands, Germany, and USA stood at nearly 13 thousand metric tons of CO₂-equivalent emissions. This means 22 % less CO₂ was emitted per ton of product sold compared to the base year of 2020, taking GNT almost halfway toward its ambition to achieve a 50 % reduction by 2030.

The new sustainability report reveals there was important progress in a number of other areas. GNT aims to enhance water efficiency at its factories by 20 % and has already delivered a 13 % improvement compared to 2020 levels. In addition, 74 % of the farmers in the company’s supply chain achieved a minimum of Farm Sustainability Assessment (FSA) Silver standard. The compliance rate for GNT’s Policy on Sustainable Sourcing, meanwhile, increased from 70 % to 90 %.

GNT also secured an EcoVadis silver medal last year and remains the only food colour supplier to have published a third-party Greenhouse Gas Verification Statement.

To read GNT’s ‘Sustainability report 2023,’ visit: https://exberry.com/en/sustainability-report-2023

GNT has achieved a 22 % reduction in carbon intensity at its EXBERRY^® factories since 2020, the company’s latest sustainability report shows.

GNT, which creates EXBERRY^® colours from non-GMO fruit, vegetables, and plants, has set out 17 ambitious targets to optimise its environmental and social impacts over the course of the current decade.

In 2023, GNT’s total carbon footprint at its production sites in the Netherlands, Germany, and USA stood at nearly 13 thousand metric tons of CO2-equivalent emissions. This means 22 % less CO₂ was emitted per ton of product sold compared to the base year of 2020, taking GNT almost halfway toward its ambition to achieve a 50 % reduction by 2030.

The new sustainability report reveals there was important progress in a number of other areas. GNT aims to enhance water efficiency at its factories by 20 % and has already delivered a 13 % improvement compared to 2020 levels. In addition, 74 % of the farmers in the company’s supply chain achieved a minimum of Farm Sustainability Assessment (FSA) Silver standard. The compliance rate for GNT’s Policy on Sustainable Sourcing, meanwhile, increased from 70 % to 90 %.

GNT also secured an EcoVadis silver medal last year and remains the only food colour supplier to have published a third-party Greenhouse Gas Verification Statement.

To read GNT’s ‘Sustainability report 2023,’ visit: https://exberry.com/en/sustainability-report-2023