Symrise sales remain static in 2011
Scent & Care sales suffer slight dip
Symrise AG has announced sales of over €1.58bn in 2011 – a slight increase of 1% (or 2% at a local currency level) on 2010. The company attributed the modest gains to a more subdued business cycle and the discontinuation of low margin activities. Earnings before interest, tax, depreciation and amortisation reflected the modest sales performance, as well as a sharp rise in raw materials prices; EBITDA in 2011 amounted to €315.9m, less than 2010’s total of €331.2m. Nevertheless, the group kept profitability at its target level, achieving an EBITDA margin of 20%.
Net income, meanwhile, rose by around 10% to €146.5m as Symrise benefited from the positive effects of refinancing (completed in 2010) and the corresponding reduction in financing expenses.
Growth in 2011 was driven by Symrise’s Flavor & Nutrition business. Its larger Scent & Care division reported sales of €801.4m – a decrease of 0.4% compared to 2010 (or a 1% increase in local currency). The division did however benefit from strong demand for menthol across all regions.
Commenting on the results, Heinz-Jürgen Bertram, ceo of Symrise, said: “We held our ground well in 2011 and proved that we can also achieve our ambitious earnings targets in a weaker economic environment. Given the widespread turbulence in many regions of the world and high volatility on commodities and capital markets, maintaining profitability was the top priority for Symrise.”