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Symrise AG

EANS-News: Symrise AG
Symrise enters second half 2010 backed by strong earnings and profitability growth

Holzminden August 10, 2010 (euro adhoc) -

• Group sales up 16.4 % 
 • 46 % of sales generated in emerging 
markets
 • EBITDA up 50 % – EBITDA margin rises to 22.3 % 
 • Net 
income for the period more than doubles to € 88.8 million
 • FY 2010 
forecast specified: on local currency terms sales growth of 
 at 
least 8 % expected
  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
6-month report
Subtitle: • Group sales up 16.4 %
• 46 % of sales generated in emerging markets
• EBITDA up 50 % – EBITDA margin rises to 22.3 %
• Net income for the period more than doubles to € 88.8 million
• FY 2010 forecast specified: on local currency terms sales growth of
at least 8 % expected
Symrise AG looks back on a
successful first half with significantly higher sales and 
profitability. In the first six months of the Fiscal Year 2010, Group
sales rose 16.4 %, or 13.9 % at local currency. Symrise benefited in 
particular from the global economic recovery, an increase in new 
orders, the innovative products in the portfolio as well as the 
dynamic growth of the business in the emerging markets. Group EBITDA 
rose 50 % to EUR 177.7 million. This was matched by a robust EBITDA 
margin of 22.3 %, up sharply on the 17.3 % reported in the previous 
year. The increased net sales, ongoing cost discipline and the high 
capacity utilization of its production facilities significantly 
supported the rise in profitability. Based on its development in the 
first six months, Symrise specifies its forecast for the full year 
and expects 2010 sales growth of at least 8 % at local currency. In 
addition, Symrise continues to aim for an EBITDA margin of more than 
20 %.
Dr. Heinz-Jürgen Bertram, Chief Executive of Symrise AG, said "We 
successfully capitalized on the economic recovery and enjoyed 
above-average growth in the first half of 2010. Our customers´ order 
patterns have normalized again compared to 2009 and we were in 
particular able to expand our business with our key customers. Our 
regional diversification and our special focus on emerging markets 
are also paying off: we´ve seen considerable growth in all regions 
and are meanwhile generating 46 % of sales in emerging markets 
alone."
"The encouraging developments of the first six months have given us 
cause for optimism for the second half of 2010. At the same time, we 
continue to keep an eye on market developments. We aim to grow faster
than the market as a whole and are currently forecasting at least 8 %
sales growth at local currency."
"We will also continue to vigorously implement our core strategic 
goals: We will further sharpen our profile, while particularly 
focusing on the two application areas Life Essentials and Consumer 
Health."
In the second quarter, Symrise took another major strategic step to 
realize further growth in the menthol business: its menthol 
production capacities will almost double by 2012.
Double digit growth in every region In the first half of 2010, 
Symrise increased Group sales by 16.4 % (13.9 % at local currency) to
EUR 797.5 million (EUR 685.1 million). Once again, the benefits of 
the company´s emerging market strategy became apparent: over the 
reporting period, the region´s contribution to Group sales increased 
further to 46 % from 44 % for the same period last year.
On a regional basis, Asia/Pacific was the most dynamic region with 21
% sales growth (14 % at local currency), closely followed by Latin 
America which - despite strong reference values - reported a 20 % 
rise in sales (15 % at local currency). The EAME region, which was 
hardest hit by the economic crisis in 2009, benefited considerably 
from the global recovery over the first six months of 2010, reporting
a 15 % rise in sales (14 % at local currency). Sales in North America
also benefited from the improved market environment, achieving 14 % 
growth (13 % at local currency).
Sales with key customers up 15 % Symrise has successfully increased 
business with strategically important key customers: over the first 
six months, sales with its top 10 customers rose by 15 % at local 
currency and accounted for 30 % of total sales.
In the Flavor & Nutrition division, sales with the top 10 customers 
grew by 16.7 % (at local currency), thereby achieving growth rates 
above those of the overall Group. In addition, the business division 
was able to secure two further core listings in the second quarter. 
Scent & Care also continued to expand its business with its key 
customers, increasing sales by 12.8 % at local currency.
EBITDA increases to EUR 177.7 million - EBITDA margin of 22.3 % up 
significantly YoY The growth in Group earnings in the first half of 
2010 was considerably supported by the disproportionately high 
increase in sales as well as the high utilization levels. In 
addition, the ongoing cost discipline throughout the Group and the 
effects of the restructuring program, which was ratified in 2009 and 
implemented successively were also clearly beneficial to Group 
earnings. Furthermore, the company was able to benefit from moderate 
raw material prices in certain areas as they were negotiated and 
secured at an early stage. In the first six months, earnings before 
interest, tax, depreciation and amortization (EBITDA) rose 50 % to 
EUR 177.7 million (EUR 118.6 million). At 22.3 %, the EBITDA margin 
significantly exceeded its previous year´s level of 17.3 %. The net 
income for the period more than doubled from EUR 41.0 million in the 
first half of 2009 to EUR 88.8 million for the same period 2010. 
Earnings per share rose accordingly from EUR 0.35 to EUR 0.75.
Gearing ratio further reduced Operating cash flow in the first half 
amounted to EUR 74.7 million (EUR 89.9 million) and reflects the 
increase in working capital at the start of the financial year. The 
Group reduced its net debt including pension provisions to EBITDA 
ratio from 3.1 at the end of 2009 to 2.7 as of June 30, 2010 and is 
thus in a financially sound position. With liabilities due in 2011 
and in the view of the current, relatively favorable capital market 
conditions, Symrise will assess various options for premature 
refinancing in the second half of the year.
Scent & Care sales rise 20 % The developments in the Scent & Care 
division were particularly impacted by the economic recovery, which 
was most evident in the application areas of Fine Fragrances and 
Personal Care. In addition, similar trends were noticeable in Special
Fragrance & Flavor Ingredients, Household and Cosmetic Ingredients. 
Scent & Care also benefited from new product launches in Cosmetics 
including e.g. the clinically tested revitalizer SymMollient® and the
aroma molecule Ambrocenide®.
Scent & Care reported double digit sales growth in EAME, North 
America and Asia/Pacific. The largest increase in sales was achieved 
by the EAME region with 21 % at local currency. Last year´s 
particularly strong reference values resulted in a somewhat more 
moderate 9 % improvement in sales in Latinamerica.
The business division´s year on year sales rose by almost a fifth to 
EUR 411.9 million (EUR 343.6 million) and an increase of 16.5 % at 
local currency. EBITDA rose by 69 % to EUR 85.5 million (H12009: EUR 
50.6 million). The EBITDA margin went up from 14.7 % in the previous 
year to 20.7 % in the reporting period.
Flavor & Nutrition - impressive EBITDA margin of 23.9 % The Flavor & 
Nutrition division also benefited significantly from improvements in 
the global economy and reported above-average growth particularly in 
the application areas Beverages and Sweet. The division additionally 
launched new products and expanded existing ranges such as the citrus
oil line NATURALLY CITRUS!® used primarily in soft drink 
manufacturing.
On a regional basis, Flavor & Nutrition achieved strongest growth 
rates in Latin America: The 21 % rise in sales at local currency was 
mainly driven by the robust demand from local and global customers in
the application areas Beverages and Sweet. The second strongest 
region of this segment, Asia/Pacific, reported a 14 % rise in sales 
and mainly profited from the advantageous developments in the 
Beverages application area. The region North America also reported 
strong sales growth of 13 %, benefiting especially from its focus on 
key customers. EAME reported an 8 % rise in sales which was supported
by both, the established markets in Western Europe as well as the 
emerging markets in Eastern Europe and Africa.
In the first half of 2010, sales rose by 12.9 % (11.4 % at local 
currency) to EUR 385.6 million (EUR 341.5 million). EBITDA increased 
by over one third, from EUR 68.0 million to EUR 92.2 million, while 
the EBITDA margin rose to an impressive 23.9 % (from 19.9 % the 
previous year).
Outlook for Full Year 2010 specified Based on the strong growth in 
the first six months Symrise enters the second half of the year with 
optimism: the Group is expecting further growth, albeit somewhat less
dynamic than in the first half due to the higher reference values and
the generally more moderate economic development. For 2010, Symrise 
aims to grow faster than the market again and expects sales growth at
local currency of at least 8 %. Under the assumption that raw 
material prices for 2010 will remain at last year´s levels, the 
Management Board also emphasizes its goal of attaining an EBITDA 
margin of over 20.0 %.
In addition, the Management Board confirms its objective of further 
reducing the net debt (including pension provisions) to EBITDA ratio 
to a level of between 2.0 and 2.5 over the medium-term.
EUR million            HY 2009       HY 2010     Change in %  Change in % at lc
Sales                    685.1         797.5            16.4         13.9
EBITDA                   118.6         177.7              50           49
EBITDA margin in %        17.3          22.3
EBIT                      77.1         133.7              73           73
EBIT margin in %          11.2          16.8               -            -
Net income for
the period                41.0          88.8             117            -
EPS in EUR                0.35          0.75             117            -
Operating cash flow       89.9          74.7
Divisions
Scent & Care
Sales                    343.6         411.9            19.9         16.5
EBITDA                    50.6          85.5              69           67
EBITDA margin in %        14.7          20.7               -            -
Flavor & Nutrition
Sales                    341.5         385.6            12.9         11.4
EBITDA                    68.0          92.2              36           36
EBITDA margin in %        19.9          23.9               -            -
31.12.09        30.06.10
Balance sheet total              1,895.2         2,087.1
Capital ratio in %                  36.4            38.3
Net debt (incl. pension
provisions)/EBITDA                   3.1             2.7
Employees/FTE¹                     4,954           5,219
¹ Not including apprentices and trainees, FTE = full time equivalent
lc= at local currency
About Symrise
Symrise is a global supplier of fragrances and flavorings while also 
manufacturing raw materials and active ingredients for the perfume, 
cosmetics and food industries.
Its sales of EUR 1.36 billion in 2009 place the company among the top
four in the international flavors and fragrances market. 
Headquartered in Holzminden, Germany, Symrise is represented in over 
35 countries in Europe, Asia, the United States and South America.
Used by manufacturers of perfumes, cosmetics and foods, our products 
are an inseparable part of daily life. At Symrise we combine an 
awareness of consumer trends with cutting-edge technologies, focusing
on innovative fashion and lifestyle products that have additional 
practical value for the consumer. Symrise - always inspiring more… 
www.symrise.com
end of announcement                               euro adhoc

Further inquiry note:

Press Contact:
Bernhard Kott
phone +49 (0)5531 90-1721
bernhard.kott@symrise.com

Investor's contact:
Dr. Andrea Rolvering
phone +49 (0)5531 90-1879
andrea.rolvering@symrise.com

Branche: Chemicals
ISIN: DE000SYM9999
WKN: SYM999
Index: MDAX
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade

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