GERMANY – Symrise AG sales were up by 3.2% to US$3.68 billion from US$3.56 billion in 2016, attributed to higher performance of the Flavor and Nutrition segments and strong demand in the EAME and Latin America regions.
Symrise benefited from high organic sales which grew by 6.3%, affected by adjustment in portfolio that is, the sale of the industrial activities of Pinova in December 2016 and the acquisitions of Nutraceutix, Nutra Canada and Cobell, in addition to exchange rate effects.
In Latin America, sales grew 7.6% due to strong demand but were offset by a 4.1% decline in North America as a result of the divestment of Pinova’s industrial activities in December 2016.
While the Asia/Pacific region achieved a modest increase of 1.4%, the EAME region showed an even more dynamic development with a strong 7.4% rise in sales.
Its profits increased to US$775.04 million despite of unfavourable currency effects, higher costs for raw materials and investments in expansion.
Net income increased 1.8% and as a result, Symrise said that the Executive Board will propose an increase in the dividend from US$1.05 to $1.08 per share at the Annual General Meeting on 16 May 2018.
The flavor segment grew by 8.5% with an increase in sales from US$1.24 in 2016 to US$1.35 billion, little affected by acquisition of Cobell which positioned it at a better competitive edge in the processed fruit and vegetable business.
In this category, sales were pushed by strong organic growth, 9.3% with a successful trend in Europe, Africa and the Middle East (EAME) as well as in North America.
Profits rose high by 3.9% due to strong performance in the Sweets and Beverages application areas as a result of new business with vanilla flavourings.
Nutrition segment recorded increased sales to US$776.27 million, driven by 6.5% organic sales growth, adjusted for portfolio and currency effects.
The pet food application contributed to the strong growth with at least single-digit growth in sales in all the four regions, which is Europe, Africa, the Middle East (EAME) and North America.
In 2018, Symrise says it remains committed to its target of growing faster than the relevant market at Group and segment levels, strong profitability, an EBITDA margin of around 20% and a compound annual growth rate of 5-7%.
“We are also optimistic about our prospects in 2018.
We have made a dynamic start and feel confident that, with our strong market position, increased internal sourcing of raw materials, and the targeted expansion of capacity, we are very well positioned,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.