News - Symrise AG, Headquarters

News - Symrise AG, Headquarters

Symrise AG, Headquarters

 

News - Symrise AG, Headquarters

Newsgrafik #36073
 13.05.2020

Symrise continues to grow in challenging market environment  (Company news)

— Sales up 8.0 % to € 917.1 million
— Excellent contribution to growth by ADF/IDF Group following acquisition in 2019
— Organic growth at 2.3 %, adjusted for portfolio and exchange rate effects
Symrise confident for the fiscal year, targets through to the end of 2025 confirmed

The Symrise Group remains on track for growth in the fiscal year 2020. In the first quarter, sales were up by 8.0 % to € 917.1 million (Q1 2019: € 848.8 million). All segments contributed to this positive development and posted gains despite the challenging global economic conditions under Covid-19. In organic terms, sales were up 2.3 % after strong comparative figures in the prior-year quarter.

"The Covid-19 pandemic is proving a tough test for the global economy. Symrise has put measures in place at all of its locations to provide employees and partners with optimal protection against the virus. We continue to be fully operational and are making every effort to supply our customers with the reliability they are used to. In this context, our employees' flexibility and enormous commitment play a decisive role," said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. "This crisis again underscores the resilience and balance of our business model. With our broad range of product solutions for foods and beverages, personal care and hygiene, we serve especially in these times the needs of everyday life. In addition, we are demonstrating social responsibility by using our technological skills and resources to produce disinfectants by the ton and deliver them free of charge to municipalities for use in public institutions."

Scent & Care with strong demand for fragrance products and menthol
The Scent & Care segment, specializing in fragrances and personal care, achieved total sales of € 368.4 million. In reporting currency, this represents a slight increase as compared to the strong prior-year quarter (Q1 2019: € 367.3 million). On an organic basis, the segment increased sales by 1.2 %.

The Fragrance division reported a significant increase in sales, with particularly strong demand in the EAME and Latin America regions. The application areas Fine Fragrances, Consumer Fragrances and Oral Care continued to achieve good sustainable growth.

In the Aroma Molecules division, sales came in slightly below the high level of the prior year, mainly as a result of weaker demand for fragrances. In the previous year, the application area benefited from soaring raw material prices fueled by raw material shortages. Sales in the first three months of the fiscal year 2020 received a boost from menthol applications, especially in the regions North America and Latin America.

Sales in the Cosmetic Ingredients division developed moderately as compared to the previous year, especially in the North America and Asia/Pacific regions. This reflected both the high comparative figures as well as a momentarily reduced demand for UV protection products. In addition, sales in China temporarily lagged behind the forecast levels. At the same time, Cosmetic Ingredients posted in the EAME and Latin America regions high single- and double-digit growth rates.

Flavor grows with savory products and beverage applications
In the Flavor segment, which supplies flavor ingredients for foods and beverages, sales increased by 2.2 % to € 322.6 million (Q1 2019: € 315.6 million). Adjusted for exchange rate effects and after a strong prior-year quarter, organic growth in the segment amounted to 1.6 %.

In EAME, the highest growth rates were recorded in applications for beverages and savory products, especially in the national markets in Germany, Eastern Europe, the Middle East, and South Africa. Sales in applications for sweets were slightly below the prior-year quarter.

In the Asia/Pacific region, sales growth in the beverages application area was in the high single-digit percentage range and reached even double-digit growth rates in savory applications. The national markets of Singapore, Indonesia, Vietnam and Bangladesh developed particularly pleasing. By contrast, the currently weaker demand in China had a negative impact on the overall positive regional development.

In North America, the application areas for beverages and sweet products were slightly below the strong prior-year level. The savory business achieved solid growth with regional and global customers.

Business in Latin America developed very dynamically and achieved high single-digit percentage growth for sweet products. At the same time, sales for beverage and savory products grew in the double-digit percentage range. Demand for beverage application products was particularly strong in the national markets of Brazil and Uruguay.

Nutrition with strong growth in pet food
In the Nutrition segment, which includes Diana (food, pet food and probiotics applications) and the activities of ADF/IDF, sales increased by 36.2 % to € 226.1 million (Q1 2019: € 165.9 million). ADF/IDF contributed € 52.5 million to total segment sales in the period under review. Acquired in 2019, ADF/IDF continues to meet all expectations. The integration is well on track and the Group will continue opening up new opportunities to drive future growth in the segment. Adjusted for portfolio and exchange rate effects, organic growth amounted to a very good 6.1 % in the period under review.

Demand in the pet food business again showed a very pleasing double-digit percentage gain in organic terms, with dynamic growth continuing especially in the Latin America and Asia/Pacific regions.

Sales in the application area food developed moderately in the first quarter. The Latin America region delivered strong results, above all in the national markets in Chile and Brazil.

The probiotic business achieved organic growth in the double-digit percentage range. The North America and Asia/Pacific regions developed particularly dynamically.

Confident for the current fiscal year
Symrise continues to be fully operational worldwide and has sustained supply capability. Due to its global presence, its expanded portfolio and broad customer base, the Group considers itself to be robust and reliably positioned even in this demanding market environment. Symrise expects that the Covid-19 crisis will temporarily change consumer behavior in parts and lead to a shift in the portfolio. A large number of the products that are currently in greater demand address essential daily needs in connection with nutrition, personal care and hygiene.

After a solid start into the year, Symrise remains confident for the current fiscal year. While the development and impact of Covid-19 is difficult to assess at present, the Group continues to expect to grow faster than the relevant market, supported by the very diversified competencies, in the course of the year.

The longer term goals until the end of 2025 remain in effect. Symrise aims to increase its sales to € 5.5 – € 6 billion. The Company intends to achieve this increase through annual organic growth of 5–7 % (CAGR) and additional targeted acquisitions.
(Symrise AG)

Newsgrafik #35999
 20.04.2020

Symrise joins KitchenTown Berlin, supporting food start-ups with expert knowledge  (Company news)

— Combined know-how to help shape a sustainable food system

— Food and taste experts support start-ups

— Unique collaboration to accelerate innovation cycle

Symrise announces its partnership with KitchenTown Berlin, a food and foodtech innovation network set up to positively impact the food system: Special focus lies on the development, commercialization, and launch of impact driven and transformational food products. To achieve this, KitchenTown creates an active global community of food entrepreneurs and innovators. With KitchenTown providing the infrastructure and network in EMEA, Symrise contributes expert guidance, to jointly deploy the right tools at the right time.

Kitchen Town uses innovation sprints to help drive new market ideas from ideation to market testing at fast pace. Special focus lies on the development, commercialization, and launch of impact driven and transformational food products. To achieve this, KitchenTown creates an active global community of food entrepreneurs and innovators to support one another and create a new sustainable food system. Interested parties can join KitchenTown through memberships and use its facilities and know-how. Additionally, KitchenTown offers an accelerator program where startups can apply for funding and venture development.

Symrise leverages the state of the art food facility and co-working spaces to facilitate collaboration and co-creation between its taste experts, foodies, entrepreneurs and their customers, the manufacturers of food and beverage products. Ideas developed and fast-tracked in KitchenTown can easily be reviewed with consumers. Through a rapid prototyping approach and compressed creation the collaboration enables critical project acceleration.

“As the world around is changing quickly, we’re here to help feed it.” says Lukas Neuß, Co-Founder of KitchenTown Berlin. Providing new perspectives for the food and beverage retail landscape through often impact driven brands is KitchenTown’s mandate.

“We have entered the innovation network to ideate, create, and grow new food and beverage ideas in the smartest way possible. We are one of the founders of the flavor industry and a leading provider of taste with innovative food ingredients expertise with strong product development capabilities, and we look forward to partnering with KitchenTown Berlin and its startup ecosystem”, says Heinrich Schaper, President Flavor at Symrise. Founders gain access to 1,000 m2 of innovation space, tailored to the needs of food and foodtech thought leaders, including a development lab, small batch production facilities, as well as a co-working and event space located in the heart of Berlin, amidst the capital’s startup scene.

“KitchenTown Berlin is a great partner for agile development projects” continues Schaper. “At Symrise we regard collaboration in open eco-systems and strategic partnerships as important enablers for long-term business success. It is our pleasure to connect our customers and taste industry experts with innovators and thought leaders, while accelerating their innovation cycle.” The company has a long heritage of external collaborations, incl. strategic Research & Technology partnerships as well as their Califormulations end-to-end rapid innovation approach in the US. Both Califormulations and KitchenTown are prepared to quickly develop shelf-ready, scalable products by replacing the traditional and often time-consuming “stage gate” innovation funnel through creative innovation sprints.
(Symrise AG)

Newsgrafik #35913
 20.03.2020

Financial Report 2019: Symrise successfully continues profitable growth  (Company news)

• Group sales in reporting currency up 8.0 % to € 3,408 million
• 5.7 % organic sales growth
• Increase in operating result (EBITDA(N)) by 12.2 % to over € 707 million
• EBITDA(N) margin up to 20.8 %
• Normalized net income for fiscal year rises by 10.2 % to over € 304 million
• Dividend increase from € 0.90 to € 0.95 per share proposed

Symrise AG continued its profitable growth course in 2019 and achieved all of its targets for the year. With the acquisition of ADF/IDF, the Company furthermore reinforced its position in North America and expanded its product portfolio in the pet food market and in natural product solutions for the food industry. Taking portfolio and exchange rate effects into account, sales increased by 8.0 % to € 3,408 million (2018: € 3,154 million). As a result, Symrise was again one of the fastest growing companies in the industry. This strong performance was carried by good demand across all segments and regions. Earnings before interest, taxes, depreciation and amortization as well as normalized for one-time effects resulting from the acquisition of ADF/IDF (EBITDA(N)) increased by € 76.7 million to € 707.2 million.

"Symrise AG again posted strong growth in 2019. With the acquisition of ADF/IDF, we have continued to expand in fast growing, high-margin business areas. We have also further diversified our product portfolio in the attractive pet food market and expanded our position in North America. In addition, we made investments to expand our capacities over the course of the year and rolled out new technologies around the world. These targeted growth initiatives, combined with our disciplined cost management, are clearly reflected in our operational development in recent quarters," said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. "Along with our customers, the capital market has also responded favorably to our performance. The share price has increased by 42 % in 2019. We want our shareholders to participate in our success again this year. At the Annual General Meeting of Symrise AG, the Executive Board and Supervisory Board will propose a dividend increase to € 0.95 per share."

Industry-leading sales growth
In the year under review, Symrise benefited from good capacity utilization and strong demand in all segments and regions. Taking portfolio and exchange rate effects into account, Group sales increased by 8.0 % in the reporting period to € 3,407.9 million (2018: € 3,154.0 million). The organic growth rate achieved a clear plus of 5.7 %. As a result, the Group exceeded the average market growth rate in 2019, which was in the 3 to 4 % range according to estimates. The acquisition of the ADF/IDF Group, a leading US supplier of poultry and egg-based protein specialties, completed in November 2019, contributed approximately € 32 million to Group sales.

High profitability despite investments and fluctuating raw material costs
Despite higher expenses, Symrise increased its earnings before interest, taxes, depreciation and amortization as well as normalized for one-time effects resulting from the acquisition of ADF/IDF (EBITDA(N)) by a clear two-digit result of 12.2 % to € 707.2 million (2018: € 630.5 million). The deal resulted in one-time acquisition and integration expenses of € 16.3 million in 2019. The markets for raw materials remained tense, especially in the first half of the year. Notwithstanding the above, Symrise continued to invest in global capacity expansion. Major investment projects included the new manufacturing site in Nantong (China), the expansion of production capacity for menthol and natural extracts in the USA, and for pet food in Colombia and France.

Symrise achieved very strong profitability in the fiscal year 2019 and significantly exceeded the previous year's level, with an EBITDA(N) margin of 20.8 %. As a result, Symrise was once again one of the most profitable companies in the industry.

Normalized net income increased by 10.2 % year-on-year to € 303.5 million (2018: € 275.3 million). This led to an increase in normalized earnings per share to € 2.25 (2018: € 2.12). Against the backdrop of the positive growth in earnings, the Executive Board and Supervisory Board of Symrise AG will propose a dividend of € 0.95 per share at the Annual General Meeting on 6 May 2020 (2018: € 0.90).

Strong cash flow trend
Symrise grew its normalized Business Free Cash flow[1] by 53 % to € 476 million in the year under review (2018: € 312 million). This represents 14.1 % of sales, as compared to 9.9 % in the previous fiscal year. This significant increase can be attributed above all to the strong gain in net income for the period and a below-average rise in working capital.

As at the reporting date, net debt, including pension provisions and similar obligations, had increased to € 2,221.5 million (2018: € 1,893.1 million). On 31 December 2019, the ratio of net debt – including pension provisions and similar obligations – to EBITDA stood at 3.1, and thus showed little change as compared to the previous year's level (31 December 2018: 3.0). The medium-term target corridor for the ratio is 2.0 to 2.5.

The equity ratio increased from 39.5 % to 41.4 % at year-end. Symrise is thus in a very good financial position.

Segment Scent & Care
In the Scent & Care segment, sales in reporting currency grew by a positive 7.2 % to € 1,419.1 million (2018: € 1,324.1 million). This represents an increase of 5.6 % in organic terms. Dynamic growth was seen particularly in the Fragrances division, which experienced strong demand for fine fragrance products. This was reflected in double digit percentage growth in fine fragrances applications, supported by strong demand above all in EAME and Latin America. The Cosmetic Ingredients and Aroma Molecules divisions also posted gains.

Scent & Care grew its EBITDA by 9.3 % to € 278.0 million (2018: € 254.4 million). The EBITDA margin for the year under review was 19.6 % (2018: 19.2 %).

Segment Flavor
Flavor achieved a 5.6 % increase in sales to € 1,257.3 million in reporting currency (2018: € 1,191.1 million). After adjusting for exchange rate effects, the organic growth amounted to 3.8 %. This positive trend was carried by all regions and application areas. Flavor benefited in particular from dynamic demand in Asia/Pacific, where the segment achieved organic growth in the high single-digit percentage range. This was driven by flavorings for applications for sweet and beverage products, above all in Indonesia, Malaysia and China.

EBITDA in this segment increased significantly by 10.1 % in the reporting period to € 268.5 million (2018: € 243.9 million). As a result, the EBITDA margin was an outstanding 21.4 % (2018: 20.5 %).

Segment Nutrition
The Nutrition segment achieved in 2019 a 14.5 % increase in sales to € 731.5 million after sales of € 638.8 million in 2018. This included a total of € 32 million in sales from the ADF/IDF Group. Through the initial consolidation of the Group in November 2019, the fourth quarter showed a remarkably strong sales increase of 28.7 %. The segment also achieved significant organic growth. Once again, this growth was driven by product solutions in Pet Food. The strongest impetus came from North America and Latin America, where growth was in the double-digit percentage range.

Normalized for one-time acquisition and transaction costs, the segment achieved EBITDA of € 160.7 million for the reporting period (2018: € 132.3 million). This represents an increase of 21.5 %. The EBITDA(N) margin also showed healthy growth. It increased to an excellent 22.0 %, as compared to 20.7 % in 2018.

Symrise looks ahead to 2020 with confidence
In 2020, the Company aims to yet again achieve significantly stronger growth than the relevant market for fragrances and flavors as well as cosmetic ingredients, which is projected to grow at a rate of around 4 %. The Company expects all of its segments to grow notably faster than the global market. Assuming raw material costs at their current levels and a stable EUR/USD exchange rate, Symrise currently anticipates an EBITDA margin of over 20 % in all segments for the current fiscal year.

Overall, with its global presence, diversified portfolio and proven strategy, Symrise believes it is well positioned to achieve these growth ambitions. The Company plans to continue expanding in fast growing, high-margin business areas in the future, combining organic investments with targeted acquisitions. In addition, Symrise will remain committed to its disciplined cost and efficiency management.

Symrise believes that it is very well positioned to achieve the targets updated at the beginning of 2019. By 2025, the Company plans to increase its sales from € 5.5 billion to € 6.0 billion by means of organic growth at an annual rate of 5 to 7 % (CAGR), combined with targeted complementary acquisitions. Long-term, Symrise aims to achieve an EBITDA margin within the target corridor of 20 to 23 %.
(Symrise AG)

Newsgrafik #35780
 11.02.2020

Symrise receives international “A” rating from CDP for outstanding environmental protection  (Company news)

- Water rating from CDP awards Symrise a place on the non-profit organization’s prestigious A-list
- Forest protection measures also recognized with a “Leadership A-” rating
- Leading position in the three CDP rating categories of climate, water and forests
- Performance among the best of more than 8,400 companies reporting worldwide

The renowned nonprofit organization CDP (formerly the Carbon Disclosure Project) has recognized Symrise once again for its exemplary efforts in the protection of water and forests. The Holzminden-based group achieved the highest rating in the water protection category, and thus a place on the prestigious A-list, in this year's annual assessment of companies and governments. Symrise also achieved an “A-” in the forest protection category, an excellent result that places it among the leading companies in the area of sustainable responsibility. The assessment is based on goals, programs and results related to ecological responsibility, which were submitted to CDP by more than 8,400 companies as well as numerous countries, regions and cities.

Symrise has a long history of employing ambitious measures for the conservation of natural resources and serves as an outstanding role model for other companies. Its contributions toward the United Nations’ Sustainable Development Goals (SDG) play a decisive role in this context. In concert with the content of SDG 6, Symrise considers the availability of fresh, high-quality water to be absolutely essential for its activities. The company is dedicated to using water efficiently and reducing wastewater volumes and emissions at all its sites worldwide. Symrise aims to reduce both chemical oxygen demand in water and sensitive waste by 60 % as compared with 2010 levels.

These comprehensive measures have now been recognized by the renowned nonprofit organization CDP every year since 2016. With its outstanding performance, Symrise ranks among the leading companies worldwide in matters of environmental conservation. “Sustainable innovations are a fundamental part of our sustainability strategy,” says Dr. Heinz-Jürgen Bertram, CEO of Symrise. “We emphasize cutting-edge technologies so we can manufacture in a way that protects water resources and forests. In doing so, we also assume responsibility for future generations. Earning top ratings from CDP motivates us to maintain this course.”

Numerous criteria involved in CDP assessment
Each year, the nonprofit organization examines and assesses the completeness of disclosed data and the management of environmental risks by participating companies and organizations. A further criterion is evidence that the organization plays a pioneering environmental role, such as setting ambitious goals. Based on the results, CDP classifies the participants into four categories from A, the highest, to D. The water and forest data submitted by Symrise rank among the best of over 8,400 analyzed companies.

In mid-January 2020, CDP also awarded Symrise an A for its sustained dedication to climate protection.
(Symrise AG)

Newsgrafik #35763
 05.02.2020

Symrise receives top score of A in international climate protection rating  (Company news)

• Prestigious nonprofit organization CDP awards Symrise highest ranking
• Key climate figures from the Holzminden-based Group among the best of more than 8,400 analyzed companies from around the world
• Symrise reduces greenhouse gas emissions by one-third ahead of schedule

Symrise is setting the standard in sustainability around the world with its ambitious climate protection measures. This has once again been honored by the prestigious nonprofit organization CDP (formerly Carbon Disclosure Project). In the annual CDP evaluation of companies and governments, the Holzminden-based Group achieved an A-list climate protection rating. The rating is based on environmental data provided to CDP by more than 8,400 companies and over 920 states, regions and cities.

Sustainability is an integral component of the Symrise corporate strategy. The Holzminden-based company wants to take responsibility for future generations and is thus setting a good example in the transition to a resource-conserving economy. To fulfill this aspiration, the company has developed a climate protection strategy. Symrise has even achieved the goal of improving environmental efficiency in terms of CO2 by a third compared to 2010 ahead of its 2020 deadline.

The numerous measures carried out have now once again earned the CDP’s top score in its climate protection rating. The nonprofit organization evaluates the completeness of the published data as well as the operational management of environmental risks, among other things. A further criterion is evidence of a pioneering environmental role, for example, through setting and achieving ambitious goals. Based on the results, the CDP classifies the participants into four categories: from A, the highest, to D. The key climate figures submitted by Symrise are some of the best from over 8,400 analyzed companies.

“As a company, we want to make a palpable contribution to climate,” says Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG. “That’s why we pursue ambitious goals. We are pleased that the CDP has recognized our efforts. It shows that we are on the right path.”

Symrise wants to be climate-positive starting 2030
Symrise has committed to further reducing its environmental footprint along the entire value chain in the future. The next milestone will be improving environmental efficiency by 2025 in terms of harmful emissions by 60 percent compared to 2016. And starting in 2030, the Holzminden-based Group intends to be climate-positive.

“We have decided on concrete measures to achieve these goals,” explains Bertram. “We want to continue to improve the energy efficiency of all our production sites and to obtain all of our electricity from renewable sources by 2025. In addition, we will support high-grade climate protection projects around the world by acquiring emission certificates.”

A further step is concluding power purchase agreements (PPAs) in Germany, i.e., electricity supply contracts that are usually entered into on a long-term basis between a producer and a buyer. By hedging market price risks, these agreements can promote the economical generation of electricity through renewable energy sources. The background for this is that the government subsidies for renewable energy production provided by the German Renewable Energy Act will end in 2021. PPAs are one way of ensuring that the facilities continue to be used after the state-funded period ends.

Symrise also expects its suppliers to commit to more climate protection in the future. Those who supply raw materials accounting for at least 80 % of its total purchasing volume are required by the company commit to their own climate targets by 2020.
(Symrise AG)

Newsgrafik #35757
 03.02.2020

Michael König appointed to Symrise Supervisory Board   (Company news)

• Dr. Thomas Rabe left the Supervisory Board at his own request on 31 December 2019
• New member Michael König has extensive experience in various leadership roles

Michael König (56, photo), CEO of Elkem ASA, is joining the Supervisory Board of Symrise AG. The Hildesheim District Court has named Michael König to the Supervisory Board effective as of 15 January 2020. He will stand for election by the shareholders at the Symrise Annual General Meeting on 6 May 2020. Mr. König will succeed Dr. Thomas Rabe (54), who stepped down at his own request and on amicable terms on 31 December 2019.

Dr. Winfried Steeger, Chairman of the Supervisory Board of Symrise AG, said: "On behalf of the Supervisory Board I would like to thank Dr. Rabe for the fruitful and trusting working relationship. We wish him the very best in his future career and personal life. We are also pleased to welcome Michael König. With his deep roots in the chemical industry and his many years' experience gained through management roles both in Germany and internationally, he represents an outstanding addition to our Supervisory Board."

Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, added: "Dr. Rabe played a decisive role in shaping the successful development of Symrise AG in recent years. I would therefore like to express our sincere appreciation on behalf of the entire company for his excellent work. At the same time, we are delighted to have recruited Michael König as a highly competent new member to our Supervisory Board. With his extensive experience, we are confident that he will make valuable contributions to Symrise AG."

Michael König is the CEO of the stock-listed Elkem ASA, a leading global supplier of silicon-based advanced materials with headquarters in Oslo. Before joining Elkem he spent four years as the CEO of China National Bluestar, a supplier of new chemical materials and animal nutrition. He began his career in 1990 at Bayer AG, where he held a number of management positions in Germany and China for 25 years, ultimately serving from 2013 to 2015 as a member of the Board of Management responsible for technology, human resources and sustainability and the Asia/Pacific, Africa and Middle East regions.

Michael König has a degree in chemical process engineering from the Technical University of Dortmund. He is married and has two children.
(Symrise AG)

Newsgrafik #35633
 10.12.2019

Symrise opens creative center in Egypt  (Company news)

• Group inaugurates modern development and application laboratories for taste solutions
• The facility meets the company's global development and technology standards

Symrise has inaugurated its Creative Center in Egypt on November 26, 2019. The subsidiary in the outskirts of Cairo comprises modern development and application laboratories for the categories Beverages, Confectionery, Dairy, Culinary and Snacks. Dirk Bennwitz, President Flavor EAME at Symrise, officially opened the new facilities. They meet the company's global technology and development standards and are intended to strengthen the company's reach in the AME region and its collaboration with strategic customers. Partners, customers and guests attended the ceremony.

Photo: Ibrahim Wagdy & Dirk Bennwitz

Symrise has equipped its development and application laboratories with state-of-the-art technology. Within the Creative Center, employees will develop customized product solutions and applications and adapt existing products for the market. Compared to its facilities so far, the new creative center offers a number of advantages. Modern consumer and market analysis and quality assurance procedures guarantee authentic and relevant products for customers and consumers in the region.

"By investing in the new Creative Center, our strong team of food technologists and flavorists can make a significant contribution to the growth in the region in the future," says Dirk Bennwitz, President Flavor EAME at Symrise. "We are convinced of the strategy, because our location in Cairo offers us proximity to customers and markets in Africa and the Middle East. In the future, we will be able to better serve demand in the region and optimally align our business with our customers, thus contributing to the company’s growth."

Customers benefit from tailor-made developments
In the future, the Symrise team will have access to all the technologies and innovations available in the Group in the Creative Center. This will make it easier to meet customer demand. In addition, customers benefit from knowledge of the region and the increased use of local raw materials. This helps to meet the diverse wishes of consumers. Another advantage is that Symrise can work with its customers in a time- and cost-efficient manner.

"We use a wide range of manufacturing technologies in Egypt to supply all of Africa and the Middle East," says Ibrahim Wagdy, responsible Managing Director of Symrise in Egypt. "We are now expanding these capacities with our modernized site thereby increasing the attractiveness for our customers in the region.

Egypt is an important location for Symrise. On the one hand, because the country's location in the AME region makes it easy to exchange information with customers from Africa and the Middle East. On the other hand, the industrial and agricultural infrastructure provides valuable advantages for the production and development of flavors for the local market.
(Symrise AG)

Newsgrafik #35637
 02.12.2019

Natural foods are particularly popular in Germany  (Company news)

• Studies show how important naturalness is for consumers around the world
• Chinese market offers the greatest potential for food manufacturers

Compared to the rest of Europe, Germans attach particular importance to naturalness when buying food. Only taste and consumer friendliness are more important to German citizens. Consumers in France and the UK also pay particular attention to these two factors, followed by value for money and naturalness. In the future, the demand for natural foods could increase, especially in China. These are the results of six studies carried out by Symrise over the past two years. The Group surveyed around 15,000 consumers ages 16 to 70 from 12 countries in Europe, Asia, North America and Latin America.

The importance of naturalness differs greatly from country to country. At the same time, the researchers also identified overarching common aspects. They found that the explicit use of the word “natural” has a great influence on the perception and acceptance of a product or its ingredients. In addition, consumers around the world reject ingredients with scientific-sounding names because they do not perceive them as natural. In order for the consumer to understand and trust the content of the label, it needs concrete and transparent information. Another finding was that consumers prefer familiar methods of food preparation. Artificial sweeteners are also considered unhealthy and too sweet.

“Many consumers today want to buy the most natural food possible,” says Stefanie Hartwig, Global Marketing Engagement Manager at Symrise. “At Symrise, we respond to this preference with our code of nature® platform. This means that we value natural ingredients, gentle processing and authentic taste in our products.”

Germans want understandable ingredients
Especially in Europe, consumers are very interested in the ingredients of food. They thoroughly read even long lists of ingredients as long as they can understand them. In general, respondents attach importance to ingredients they know. On the other hand, they mostly reject unfamiliar ingredients. This also applies to very general disclosures such as the ones on vegetables. Concrete content information significantly improves acceptance. The disclosure of food additives in the form of E numbers, as practiced in the European Union, is also poorly received by consumers, especially in Germany.

In Asia, the proportion of consumers interested in natural foods varies relatively widely. While in Japan almost half of consumers prefer natural raw materials, in Thailand the proportion is about a third and in China about a quarter. China holds the greatest future potential. There are particularly good prospects in the yogurt drink and flavored water categories, if manufacturers simultaneously consider the need for health and safety.

“Natural foods offer an enormous growth market with great opportunities for manufacturers,” says Mathias vom Weg, SVP Global Purchasing Flavor at Symrise. “The challenge is to ensure naturalness throughout the value chain. We focus on transparency and traceability. With clear guidelines, we ensure that our suppliers meet our requirements for naturalness.”

Similar perception of naturalness in North America and Latin America
In the USA, consumers particularly expect naturalness in the yogurt (68 percent), soup (55 percent) and flavored water (50 percent) product categories. Respondents there primarily associate naturalness with the terms “fresh,” “natural,” “local ingredients” and “free of additives and preservatives.” This also applies to Latin America. Consumers there understand naturalness as describing a product that is real and pure without additives. Especially in beverages, Latin American consumers value natural taste, natural sweeteners and a healthy product.
(Symrise AG)

Newsgrafik #35571
 22.11.2019

Symrise to open creative center with Unilever  (Company news)

— Integrated product development for a key customer’s brand
— Presence at Wageningen Campus
— Ecosystem approach for high speed to market

In the so-called “Food Valley” of Wageningen, Symrise pioneers a new approach by installing an innovation lab at the Unilever Foods Innovation Centre on the Wageningen Campus. By having Symrise resources directly on the site of consumer goods manufacturer Unilever and by working together with scientists of the internationally renowned Wageningen University & Research, innovative culinary foods will be developed at a much faster pace. This enables Symrise to thoroughly understand and deliver against its customer’s needs. Knowledge exchange with customers and research institutes at joint facilities will serve as a successful model to achieve this.

Could a slight note of mint perfectly complement the taste of a lamb ragout? Or could coriander add that special twist to a seasoning sauce? The culinary professionals at Symrise explore the best ingredients for sauces, condiments, soups or dips on a daily basis. In the past, Symrise taste experts developed finished product ideas in their own facilities and then presented them to their customers from the food industry. Symrise has now developed an integrated model with the consumer goods manufacturer Unilever. The latter is one of the world’s leading consumer packaged goods companies offering well-loved brands like Knorr, Wall’s, Lipton, Hellmann’s and Amora.

The company is constantly innovating, bringing new authentic taste ideas to consumers’ palates, meeting current and future requirements for healthier and more sustainable market products, such as plant-based foods and developing products for new consumption occasions like snacking and meal bridging. Now, working together with Unilever, Symrise can help shape product development in an especially efficient way. For this purpose, Symrise is opening an application lab at Unilever’s Foods Innovation Centre in Wageningen in the Netherlands. The state of the art creative center will comprise a flavor creation lab, an application kitchen and collaboration rooms that cover 120 square meters.

Creative and efficient together
“This approach will enable the companies to optimally integrate and develop new products together in a creative and efficient manner,” says Heinrich Schaper, President Flavor Division at Symrise. “Furthermore, the site will make it possible for us to leverage the expertise of the best Agri-Agro researchers from around the world.” Wageningen University & Research is recognized globally as the top institution for education and research in the areas of agriculture and nutrition, in which it possesses a rich hundred-year tradition. Over 5,000 scientists and 12,000 students are dedicated to studies in the agro-food and environmental domain. Employees of Symrise will also lecture at the university, and students will be invited for exchanges in Holzminden.

“We are thrilled about the idea of cooperation and direct knowledge exchange. Having the resources and expertise of a global leader, such as Symrise located right at our site enables us to work even better together on the transformational journey towards a food system that is better for you and for the planet. It’s a first proof point of how we envisage working together with partners in an ecosystem. Consumers can look forward to very unique taste experiences,” says Manfred Aben, Vice President R&D and Head of the Foods Innovation Centre at Unilever.

Innovations for more taste and sustainability
Symrise aims at working together with Unilever on many different levels. In addition to taste, sustainability ranks high on the agenda of both companies. Both their environmental and social commitments have been recognized on numerous occasions. This new, on-site approach to integrated product development allows for more scientific collaboration on the field of sustainability. Both society and consumers will profit from joint sustainable solutions.

Combining research and consumer insights of both companies with an accelerated innovation pace delivers significant advantages – products can be developed faster, more efficiently, with high consumer relevance. To achieve this, Symrise will contribute a selection of raw materials and use them directly in the development of new products.

“This approach, which resembles a holistic ecosystem in which specialists from Unilever and Symrise are directly connected to one another as well as with scientists from the Wageningen University & Research, has enormous potential,” says Schaper at Symrise. “It can be adopted by other customers and enable go-to-market product acceleration. It also provides the long-term benefit of adding depth to our understanding of customers and their markets.”
(Symrise AG)

Newsgrafik #35594
 19.11.2019

Symrise presents trendsetting products at NeoFood 2019  (Company news)

Symrise is extending an invitation to a customer event in the London Docklands
• The taste experts will showcase innovative solutions for evolving consumer preferences
• The United Kingdom is considered particularly progressive when it comes to food trends
• Snackification and flexitarianism characterize the modern food lover’s dietary style

Standardized eating patterns are fading as the traditional trio of breakfast, lunch and dinner seldom fits into the rhythm of modern people’s lives. The trend moves toward more agile, flexible diets; smaller meals and healthy plant-based snacks. Rising to the challenge, Symrise will present natural product concepts and taste solutions for contemporary savory meals and sweet treats at the NeoFood customer event in November 2019.

The trends of “snackification” and “flexitarianism” are causing a sweeping change in our lifestyle. Eating habits are evolving throughout the EMEA economic region. Mobility, variability and many smaller meals are becoming increasingly important. “Our consumer studies have shown that in the future, modern consumers will eat up to six snacks per day rather than the traditional three large main meals,” explains Frank Hoeving, Managing Director NE at Symrise. Accordingly, the taste experts will present a large variety of innovative solutions for modern diets on November 20 at NeoFood 2019 in the London Docklands.

Modern diets are flexible
“Many people’s lifestyles are much less regulated today than even just a few years ago,” continues Hoeving. “Many consumers are dissatisfied with conventional products and want new ones that are oriented to their changed lifestyles.” For instance, flexitarians want to be able to switch at any time from healthy, sustainable meat products to a wholesome vegetarian diet. The United Kingdom is considered a trendsetter in this development and is therefore particularly suitable as an international platform for Symrise’s consumer-oriented innovations.

Symrise fulfills consumer demands
“We are pleased to introduce our product ideas, which were inspired by our industry experts, to our partners at NeoFood 2019,” says Frank Hoeving. “Together, we develop solutions that increase both consumer satisfaction and our customers’ commercial success.” Delicious meals, healthy snacks, dairy alternatives, sweet treats and indulgent beverages are included in the varied Symrise trade show portfolio. All based specifically on Symrise consumer research, these products are perfectly suited to meet the demand for food that is just as uncomplicated as it is flexible, healthy and tasty.

The NeoFood trade show takes place on November 20, 2019, from 11:00 a.m. to 5:00 p.m. on the second floor of the Crowne Plaza in the London Docklands.
(Symrise AG)

Newsgrafik #35560
 18.11.2019

Symrise focuses on renewable energies  (Company news)

• Holzminden-based Group is a member of the RE100 Initiative
• By 2025, energy should be obtained entirely from renewable sources

On October 24, 2019, Symrise became a member of the global initiative RE100. By joining RE100, the fragrance and flavoring manufacturer from Holzminden has committed to completely obtaining its energy from renewable sources by 2025. The membership is a new component in a comprehensive strategy for climate protection and sustainability.

Symrise operates numerous production facilities for about 30,000 products as well as development centers, labs and offices in more than 40 countries around the world. The Group is one of the leading global providers of fragrance, flavoring and food ingredients, cosmetic active ingredients and raw materials as well as functional ingredients and solutions that enhance the sensory properties and nutrition of various products. Energy consumption in 2018 amounted to 5,413 terra joules. This is an amount that demands a greater responsibility for the environment. Symrise is aware of this and has invested strongly in its energy efficiency and renewable energies over the past few years. Last year, the Group began obtaining CO2 certificates of origin in Germany, therefore greening all the energy it bought. At this point, 98 percent of Symrise production sites have already been certified according to these sustainability criteria. Furthermore, 69 percent of the company’s manufacturing sites (in terms of production volume) are ISO 14001 certified – a globally accepted standard for environmental management systems.

Always one step ahead in sustainability
Symrise is now going one step further and joining a leading initiative of large companies to advance the use of renewable energies. “Symrise wants to exclusively use energy from renewable sources around the world by 2025 – that is our clear goal,” says Hans Holger Gliewe, Chief Sustainability Officer at Symrise. “We are setting an example through our membership in the RE100 initiative.”

RE100 is a global initiative with more than 190 large companies from different sectors, including furniture group Ikea, beverage manufacturer Carlsberg and insurer Swiss Re. All members must set a deadline by which they want to obtain 100 percent of their energy from renewable sources – with the limit here being 2050. The progress of the journey toward this goal must be documented in an annual report. A medium for this documentation is the global environmental reporting platform CDP. According to CDP, Symrise is already one of the most sustainable suppliers. The company also received the highest possible rating of “Leadership” in the categories of climate protection and forest conservation in 2018. Furthermore, the Holzminden-based Group publishes its sustainability performance in its yearly Corporate Report, which includes a Sustainability Record, according to the criteria of the Global Reporting Initiative (GRI).

“Symrise has been completely transparent regarding its energy goals and performance since 2006. We were the first company in our sector and among the first 61 companies worldwide to fulfill the strict climate goals of the Science Based Targets Initiative (SBT) in June 2017,” says Dr. Helmut Frieden, Corporate Sustainability Symrise AG. “But we are not stopping there, because programs to achieve eco-efficiency today have the highest priority in society. This is reflected in our current materiality analysis, in which we describe the strategic weighting of our sustainability goals through our company and its stakeholders.”
(Symrise AG)

Newsgrafik #35548
 04.11.2019

Symrise with continued sales growth of 7.1 %  (Company news)

• Group sales increase to € 2,551 million
• Strong performance in all segments
• Company reaffirms outlook for 2019 and long-term targets

Following a dynamic first half of the year, Symrise AG stayed on its growth course in the third quarter. All segments benefited from good demand. Group sales for the nine-month period increased to € 2,551 million (9M 2018: € 2,383 million). This represents a 7.1 % growth in reporting currency.

"We successfully continued our growth course in the third quarter. Also, with weaker economic conditions in some countries, we were able to make very good use of business opportunities and to grow in all segments. We also implemented investment projects according to plan and created additional production and research capacities. This ensures that we will continue to be well positioned in the future to deliver optimal performance in meeting our customers' needs and expectations. For the remaining weeks of this year, we believe that we are in a good position and are confident that we will achieve our growth and profitability targets for 2019," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.

Scent & Care with strong sales growth in fragrance compositions
Scent & Care, the business activities with fragrance and cosmetic ingredients applications, achieved a 7.1 % increase in sales to € 1,069.5 million (9M 2018: € 998.6 million). The segment posted organic growth of 5.6 %.

The Fragrances division was an important growth driver in the segment and achieved double-digit organic sales growth. Substantial sales gains were seen in particular in the Fine Fragrances business unit and the new Consumer Fragrances business unit, which combines the Beauty Care and Home Care application areas. The strong demand in all regions and price increases were important factors behind the healthy growth. Organic growth in the Oral Care business unit was in the single digits, with increases achieved mainly in the Asia/Pacific region.

In the Cosmetic Ingredients division, growth was in the single-digit range following the strong increases in the previous year. The Asia/Pacific and Latin America regions showed particularly expansive trends, especially in the national markets of China and Colombia.

The Aroma Molecules division saw moderate organic growth as compared to the high figures from the previous year. The increase in internal use of fragrance ingredients impacted the external growth. As the backward integration was expanded, significantly higher amounts of the capacity were used in own compositions.

Flavor showed high growth rates in the Latin America and Asia/Pacific regions
In the Flavor segment, which supplies flavors for foods and beverages, sales increased 5.8 % to € 965.5 million (9M 2018: € 912.5 million). Adjusted for exchange rate effects, organic growth amounted to 4 %. The Latin America and Asia/Pacific regions and the Savory business unit contributed substantially to the increases in sales. The Sweet business unit, by contrast, has experienced slower growth in sales after the dynamic trend in the previous year. An important factor in that regard has been the normalization of raw material prices for some natural products.

In the EAME region, the Flavor segment achieved an organic growth rate in the single-digit range. The strongest impetus came from applications for savory products and beverages in Germany, Russia and the Middle East.

The Asia/Pacific region achieved organic growth in the high single-digit range, especially in the Beverage and Savory business units. In some cases, growth was in the double-digit range. Key drivers behind the increases were the markets in Indonesia, China, Singapore and Thailand.

Through the first nine months of the year, North America experienced moderate sales growth. Yet, the Savory business unit showed a dynamic trend, in particular through extensive new business with global and regional customers.

Business in Latin America also showed dynamic growth, with organic growth in the double-digit range. All business units achieved strong gains, especially in the national markets of Brazil and Mexico.

Nutrition continued its strong growth in Pet Food
The Nutrition segment, which includes the Diana division, with applications for food and pet food as well as probiotics, achieved a 9.4 % increase in sales to € 516.0 million (9M 2018: € 471.4 million). In local currency the organic growth was higher, at 10 %.

The main growth driver for the Nutrition segment was again the Pet Food business unit, which achieved very good double-digit growth, especially in the national markets of the USA, Colombia and Brazil.

In the Food business unit, the Latin America and Asia/Pacific regions reached good growth rates, especially in the national markets of China, Mexico and Chile. In the EAME and North America regions growth was relatively modest.

Sales in the Aqua business unit continued to show a positive trend, especially in the EAME region, which achieved growth rates in the double-digit range.

Probiotics experienced single-digit growth in the period under review. In local currency, sales were at the same level as in the previous year. The North America region, which accounts for the majority of sales revenues, suffered from slower market growth. Growth in the EAME region was in the double-digit range.

Looking ahead to current fiscal year with confidence
Against the backdrop of the positive business development in the first nine months, Symrise is confident that it will meet its targets for the full year 2019. Symrise continues to expect sales growth of 5 to 7 % and to exceed the growth rate of the relevant market by a significant margin again this year. The market is projected to grow at a rate of 3 to 4 % worldwide. In addition, Symrise remains committed to its profitability guidance, as adjusted in August, and is aiming for an EBITDA(N) margin of approximately 21 %.

New technologies and initiatives to increase efficiency have been rolled out and implemented globally in 2019. Symrise has also continued to focus on high-margin applications. These measures are beneficial to the positive trend in earnings and cash flow.

The long-term targets also remain fully in effect: Symrise aims to increase its sales from around € 5.5 billion to € 6.0 billion by the end of 2025. This is to be achieved through organic growth at an annual rate of 5 to 7 % (CAGR) combined with additional targeted acquisitions.

In January, Symrise announced the planned acquisition of the US-American company ADF/IDF, a meat and egg-based protein specialist. The transaction is subject to customary regulatory approvals. The deal is expected to close in the fourth quarter of 2019.
(Symrise AG)

Newsgrafik #35483
 29.10.2019

Symrise expands innovation center in Indonesia  (Company news)

- Strengthened presence in emerging Southeast Asian markets
- Location close to sustainably cultivated raw materials

Picture: Symrise CEO Dr. Heinz-Jürgen Bertram cuts the ribbon at the expanded Innovation Center in Jakarta Indonesia

Symrise has invested in its location in the Indonesian capital Jakarta. The company officially opened the expanded innovation center on October 10, 2019. With this modern facility, Symrise can develop creative solutions for fragrances, cosmetics, food and beverages. These applications are specifically tailored for the Indonesian market and can directly be presented to customers on site. Diana Food, the natural solution provider, is also using the facility to engage with customers in one location to extend its footprint in Indonesia.

Symrise invested a total of around € 3 million in the innovation center. "With our expanded location in Jakarta, we are emphasizing the importance of the Asian region for our company. Indonesia is already a key market today and will continue to be so in the future. Over the past ten years, we have more than doubled our sales and generated an annual growth rate of around eight percent,” says Dr. Heinz-Jürgen Bertram, CEO of Symrise. Indonesia is the largest economy in Southeast Asia. The proportion of middle-income groups is rising and purchasing power is steadily increasing.

Accordingly, Symrise has significantly increased the innovation and laboratory capacities for taste, scent and care. The perfumers have access to application laboratories with a wide range of modern test and evaluation equipment. The space for technologists in the Flavor division has more than doubled. In the new center they will extend the development of flavorings for the local market, for example, solutions for beverage applications, sweet goods, and savory products. The results can be evaluated with the latest technologies as well. The team can also present final products to their customers directly on site.

Through the expansion Symrise has almost doubled its profile in Scent & Care and Flavor with application possibilities for fragrances, cosmetic ingredients and flavorings for beverages, sweets and savory products. Dr. Bertram and additional management representatives have traveled to Jakarta for the opening ceremony, highlighting the region's strategic relevance for the Company.

Indonesia: Strategic raw materials and sustainability-oriented consumers
“Consumers in Indonesia as well as Southeast Asia are increasingly looking for sustainable products and have a strong focus on their health and well-being,” says Dr. Bertram. “At the same time, we have early on realized how important the access to strategic raw materials is. Most of our products are based on natural raw materials. Many of them come from Indonesia, such as aromatic patchouli and cloves.”

Patchouli, for example, is grown on the Indonesian island of Sulawesi. Symrise maintains sustainable partnerships with local farmers there. This gives the company direct access to sources of valuable raw materials. It also contributes to the effective protection of ecosystems and to the improvement of life in local communities.

Using local developments for unique creations
In the three Flavor, Scent & Care and Nutrition segments, Symrise is represented at around 100 locations worldwide with more than 30,000 products. First and foremost, the company pursues a common goal in all regions: to develop locally. This is also the case in Indonesia. “For example, the characteristic Asian ingredient ginger is found in foods, drinks, fragrances and cosmetics,” says Dr. Bertram. “We develop and manufacture successful flavorings, fragrances, cosmetic ingredients and nutritional solutions for Indonesian companies and consumers. Going forward we will be better positioned to significantly accelerate product development for our local customers in Indonesia.”
(Symrise AG)

Newsgrafik #35434
 17.10.2019

Symrise joins biodiversity initiative  (Company news)

— Coalition of 18 companies aims to protect biodiversity and continue changing agriculture

— The Holzminden-based Group contributes to more sustainable food manufacturing

With other companies, Symrise wants to protect biodiversity. That’s why the companies have created the One Planet Business for Biodiversity (OP2B) coalition, which focuses on agriculture. Symrise is one of the founding members. The partners have committed themselves to jointly developing more environmentally friendly agricultural methods and changing their added value accordingly. On September 23, 2019, the launch of the initiative, which involves 18 companies and the World Business Council for Sustainable Development (WBCSD), was officially announced at the UN Climate Change Conference in New York.

Globalized and specialized agriculture is currently reaching its ecological and social limits. The global food and agriculture system is responsible for 30 percent of man-made carbon dioxide emissions, 70 percent of drinking water consumption and 60 percent of global biodiversity loss. At the same time, biological diversity is an essential requirement for fertile soils, flower pollination and pest control. This is why the cross-industry coalition OP2B has set itself the goal of developing alternative agricultural methods that protect and promote biodiversity.

In their work together, the 18 member groups focus mainly on three areas. First, they want to develop regenerative agricultural methods to protect the soil. These are intended, for example, to help plants store carbon dioxide better in the earth and enable soils to absorb more water. In addition, the resistance of vegetation is to be improved and dependence on artificial fertilizers and pesticides significantly reduced. Second, the partners want food manufacturers to diversify their product ranges. Among other things, there are plans to increase the number of rare and endangered crop varieties in order to preserve the genetic diversity of crop plants as a breeding reserve for a sustainable agricultural system. Third, the companies are planning to develop strategies to protect threatened ecosystems such as forests, marshes, grasslands and meadows, as these are especially rich in biodiversity. The coalition aims to achieve these three goals by 2030.

“For Symrise, biodiversity is a valuable source of innovation and inspiration for creating fragrances, flavorings, cosmetic and functional ingredients that improve health, nutrition and well-being," says Hans Holger Gliewe, Chief Sustainability Officer at Symrise. “That's why we're partnering with like-minded companies to integrate biodiversity into our strategies and business models.”

Coalition to present concrete measures in 2020
The partners would like to present progress by the time the United Nations World Conference on Nature Conservation is held in Beijing in 2020. For example, by June 2020, they want to develop a summary of important measures that member companies can implement in their value chains. They then plan to Conservation Conference in October 2020.

“One company alone cannot meet the challenge posed by the threat to biodiversity,” says Gliewe. “That’s why we have joined forces with partners to make agriculture more sustainable and thus preserve biological diversity. Together, we want to develop solutions for products that are attractive to our customers and consumers and, at the same time, appeal to their ecological awareness.”
(Symrise AG)

Newsgrafik #35303
 06.09.2019

Symrise researches optimal vanilla cultivation methods in Madagascar  (Company news)

• The project aims to ensure higher yields and the best possible quality
• The goal is to increase the income and improve the living conditions of farmers

Symrise generates insights on the best cultivation conditions for vanilla in specifically designed fields in northern Madagascar. The results shall help increase yields and ensure consistent premium quality. As an integral part of Symrise’s work and partnership approach, Symrise will share the expertise gained from the tests with local partner farmers. This shall improve their income and living situation.

Photo: Vanilla plant

For many years, Symrise has worked directly with vanilla farmers in northeastern Madagascar. The aim is to safely source natural high-quality vanilla, providing full traceability of the vanilla beans and their related flavors. Symrise currently works with around 7,000 smallholder farmers in 90 villages. “Thanks to our close cooperation with farmers and our permanent presence, we understand the working and living conditions of local farmers in detail,” says Alain Bourdon, Country Director at Symrise Symrise Madagascar. “We want to sustainably improve their living conditions and consider this an integral part of our approach to supporting farmers and their families. We want them to become more resilient and have already achieved encouraging results with the work we have been doing in the field. Now we have started another chapter, which aims to better understand the vanilla plants our partner farmers work with and the conditions under which the precious plant grows best.” Symrise’s year-round presence on the island and the close collaboration between company experts and local communities is a key success factor in this.

The results of the project will allow Symrise to understand how the yield and quality of vanilla can be further improved. Also, the company wants to deduce how farmers can efficiently apply this knowledge to their vanilla cultivation and thereby improve their standard of living. “We believe in a sustainable value chain from start to finish. That starts with supporting the farmers we work with and their families such that they are able to thrive and produce the best beans. Beans that go through the best processing methods, for the best extracts for the best brands,” says Yannick Leen, Global Taste Competence Director Vanilla at Symrise.

The vanilla fields lie close to the Symrise factory in Benavony. As part of the project, researchers combine different growth environments for vanilla. These cover a wide range of different agroforestry systems. Others incorporate a shady greenhouse area with meticulously controlled parameters like temperature, light and humidity.

What does vanilla need?
At the beginning of the research project in 2018, Symrise first focused on the conditions that allow vanilla seedlings to grow healthily. The employees then looked for the best possible conditions in the soil structure with regard to nutrients, permeability and ventilation, for example.

At the end of last year, the plants completed their first stage of growth, which allowed Symrise to begin their phenotyping – that is, the quantitative analysis and measurement of their appearance. In the next step, they reported the ideal conditions for the growth of the flowers, such as the amount of water applied, temperature regulation and the trimming of plants to stimulate their flowering. For the project, Symrise put together a team of permanent experts to supervise the entire process: agricultural researchers with experience in agroforestry, and who focus on the rainforest, assisted and are assisting with their expertise.

Sharing this knowledge with the local small-scale farmers will lead to the increased yield of vanilla, which is coveted all over the world, will also make an important contribution toward sustaining their livelihood. This takes place in conjunction with the sustainability objectives of the United Nations. Of these, Symrise places particular importance on number 17 – “Partnerships to achieve goals.” The vanilla cultivation project is a good example of this.

Symrise is one of the most important suppliers of vanilla worldwide. The company has been active in Madagascar, where 80 percent of the world’s vanilla is grown, since 2005. “Our vanilla activities there are the best proof that commercial success and sustainability go hand in hand,” says Heinrich Schaper, President of the Flavor division at Symrise.
(Symrise AG)

Newsgrafik #35269
 16.08.2019

Symrise achieves strong revenue growth of 7.4 % in the first half of the year  (Company news)

• Profitability at good level with an EBITDA(N) margin of 20.8 %
• Outlook 2019 specified: Normalized EBITDA margin expected to be around 21 %
• Growth target for the full year and long-term goals for 2025 confirmed

Symrise continued its dynamic business development in the first half of 2019. All segments benefited from higher customer demand and realized a pleasing increase in sales. Across the Group, Symrise increased organic sales in the first half of the year by 6.2 %. Accounting for currency translation effects, Group sales increased by an impressive 7.4 % to € 1,692 million (H1 2018: € 1,576 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 342 million and therefore was up 7.7 % over the previous year’s level (H1 2018: € 317 million). Adjusted for the one-time effects related to the planned acquisition of ADF/IDF, EBITDA(N) amounted to € 351 million, exceeding the previous year’s figure by € 34 million. The profitability of the Group remained at a high level with an EBITDA(N) margin of 20.8 % (H1 2018: 20.1 %). As a result of the new IFRS 16 standard, EBITDA(N) increased by € 9.8 million in the first half of 2019. The normalized net income for the period of € 153 million exceeded the previous year’s level by 7.8 % (H1 2018: € 142 million).

“After a dynamic start to the year, we continued our growth and further expanded our business,” said the CEO of Symrise AG, Dr. Heinz-Jürgen Bertram (photo). “All segments increased sales and contributed to the Group’s growth. This positive development is accompanied by continued good demand from our customers. That is why we are looking ahead to the coming months with confidence, even if the economic prospects are slowing down in some regions of the world. Symrise has proven in the past that our business remains very robust even in such times. We therefore stand by our annual goals as well as our long-term ambitions. These goals include annual organic sales growth of 5–7 % on average by 2025.”

Good demand in all segments
Symrise achieved dynamic organic sales growth of 6.2 % in the first half of 2019. All segments benefited from good demand. Including exchange rate effects, consolidated revenues increased by an impressive 7.4 %.

The Scent & Care segment
Scent & Care realized strong organic sales growth of 6.3 % in the first half of 2019. After a dynamic first quarter, the very positive sales performance continued in the second quarter. Taking currency translation effects into account, sales in the first six months were € 712 million, up 7.8 % over the same period of the previous year (H1 2018: € 660 million).

Sales in the Cosmetic Ingredients division grew by a single-digit percentage, driven by the North America and Asia/Pacific regions. The national markets in the USA and China developed particularly dynamically.

The Aroma Molecules division recorded satisfactory organic growth. The Menthols business unit achieved above-average growth in Latin America, and the Fine Aroma Chemicals business unit performed likewise in the EAME and Asia/Pacific regions.

The Fragrance division achieved a double-digit percentage increase in organic sales. Growth drivers were the Consumer Fragrances and Fine Fragrances business units. In the Consumer Fragrances business unit, growth in Asia/Pacific and North America was particularly high, especially in India and the USA. The Fine Fragrances business unit significantly increased sales in the North American and EAME regions. The Oral Care business unit grew in the low single-digit percentage range and achieved the highest growth in the Asia/Pacific region.

Scent & Care improved EBITDA by 9.7 % to € 140 million in the first half of 2019 (H1 2018: € 128 million). The segment’s EBITDA margin was 19.7 % and was despite persistently high raw material costs above the previous year’s level (19.4 %).

The Flavor segment
In the first half of 2019, Flavor achieved organic sales growth of 3.7 % over very high comparable figures from the previous year. The Savory business unit and the Asia/Pacific and EAME regions significantly increased sales. In the Sweet business unit, the increase in sales was modest after the high level of momentum in the previous year. Accounting for currency translation effects, the segment’s sales in the reporting currency grew by 5.4 % to € 637 million (H1 2018: € 605 million).

In the EAME region, the Flavor segment realized single-digit organic growth rates. Significant growth stimuli came from applications for savory products in Russia and the Middle East.

The Asia/Pacific region recorded double-digit growth rates in the Beverage and Savory products application areas. The markets of Indonesia, Malaysia, Thailand and Vietnam developed particularly well.

Latin America also was also dynamic and achieved double-digit organic growth. The application areas for savory and sweet goods did particularly well in Brazil, achieving double-digit growth.

In North America, sales growth was in the single digits. In particular, the savory products application area developed positively.

The EBITDA of the Flavor segment amounted to € 144 million in the reporting period (H1 2018: € 127 million), and grew 13.6 % compared to the prior year’s figure. The EBITDA margin improved from 21.0 % in the first half of the previous year to 22.6 % in the current fiscal year. This was mainly due to proportionally lower raw material costs.

The Nutrition segment
Nutrition achieved strong organic growth of 11 % in the first half of 2019. Accounting for currency translation effects, sales in the reporting currency amounted to € 343 million and were 10.5 % above the previous year’s level (H1 2018: € 311 million).

The Pet Food business unit achieved a very good, double-digit organic growth rate. Of particular note is the dynamic sales development in the Latin America and Asia/Pacific regions with strong growth in South Korea, Thailand, Brazil and Mexico.

In the Food business unit, the regions of Asia/Pacific and Latin America posted double-digit growth, especially in China, Australia and Mexico. Sales in the EAME and North America regions fell slightly.
Sales also developed well in the Aqua business unit. Important new business was gained here, especially in the EAME region.

Probi achieved double-digit sales growth during the reporting period. The regions of EAME and North America showed particularly good growth. In Europe, numerous new business wins were realized, and a large customer’s business stabilized in North America.

The Nutrition segment generated an EBITDA(N) of € 67 million in the first half of 2019 (H1 2018 EBITDA: € 62 million). The segment’s EBITDA(N) margin reached 19.5 %, which was below the prior-year period (H1 2018 EBITDA margin: 20.0 %). The slight decrease in margin was mainly due to production delays at Diana Food’s new site in North America and increased raw material costs at Diana Pet Food.

Operating result
As part of the planned acquisition of ADF/IDF, acquisition costs of € 9.6 million were incurred in the first half of 2019. Symrise is therefore using normalized results (EBIT(N) / EBITDA(N)) adjusted for these one-off, non-recurring specific influences.

In the first six months of 2019, the Group generated normalized earnings before interest, taxes, depreciation and amortization (EBITDA(N)) of € 351 million. The EBITDA(N) thus increased by 10.8 % compared to the same period of the previous year. The main driver of this development was profitable sales growth.

Net income for the period and earnings per share
The normalized net income for the first six months of 2019 amounted to € 153 million, which was € 11 million above the figure from the previous year of € 142 million. Normalized earnings per share reached € 1.14, after € 1.10 in the first half of the previous year (+4 %). Earnings per share including one-time expenses for the ADF/IDF acquisition were € 1.09.

Cash flow from operating activities
At € 141 million, cash flow from operating activities for the first half of 2019 was € 10 million lower than in the previous year (€ 151 million). The main reasons for this were an increase in working capital (in particular due to period-related lower trade payables) and higher tax payments in the reporting period, which more than offset the higher profits and lower capital expenditures than in the same period of the previous year.

Financial position
Net debt decreased by € 207 million to € 1,173 million compared to the reporting date of 31 December 2018. This was mainly due to the capital increase carried out in March and the effects of the application of IFRS 16. The ratio of net debt to EBITDA(N) thus amounted to 1.8. Including pension obligations, net debt equaled € 1,780 million, which corresponds to a ratio of net debt (including provisions for pensions and similar obligations) to EBITDA of 2.7. Pension obligations in the Group increased by € 93 million, due to a significant decline in interest rates in Germany.

Outlook: Targets confirmed and profitability specified
Following the dynamic business development in the first six months, Symrise continues to expect sales growth of 5 to 7 % for the current fiscal year. The target is once again to significantly exceed the growth of the relevant market in 2019, which is estimated to grow by 3 to 4 % worldwide. In addition, Symrise is now targeting an EBITDA(N) margin of around 21 % (including IFRS 16) despite the expected economic slowdown, persistently volatile exchange rates and tight raw material prices.

Overall, the Group is very well positioned to achieve its targets with its global presence, diverse portfolio and broad customer base. Against the background of rising demand for important raw materials, the expansion of our own backward integration will continue to play an important role.

At the beginning of the year, Symrise presented its long-term targets. They underpin the company’s ambitions and now extend to the end of fiscal year 2025. Symrise intends to increase sales to about € 5.5 to 6.0 billion by then. This increase is to be achieved through annual organic growth of 5 to 7 % (CAGR) as well as additional targeted acquisitions.
(Symrise AG)

Newsgrafik #35181
 26.07.2019

Symrise continues growth in Russia – new production line for liquid flavoring range  (Company news)

• Liquid taste solutions supplement the production of dry applications
• Regional customers benefit from solutions for sweet, dairy and beverage products

Symrise is launching a production line for liquid flavorings in the Russian town of Rogovo, south of the capital city of Moscow, where the company began producing its own dry taste solutions a few years ago. On July 11, 2019, the Holzminden-based company opened the expanded production site with an inaugural ceremony. Russian customers will now receive regionally produced taste solutions for sweet and dairy products as well as beverages. These supplement the range of dry taste solutions for snacks and ready meals.

Photo: Ribbon cutting from left to right: Dirk Bennwitz - President Flavors Division EAME, Alexander Blagov - Deputy Prefect New Moscow Administration, Stephan Schulte - Managing Director & Divisional Manager Flavors GUS OOO „Symrise Rogovo“

Representatives from industry, politics and local dignitaries attended the inaugural ceremony. The head of management of the Rogovo site gave a speech in which he highlighted, among other things, the special neighborly relationships the site has. Representatives from the German Embassy, the German Chamber of Foreign Trade and the press also took part in the ceremony. Symrise in turn used the opportunity to greet customer representatives who will benefit from use the products from the new line. “We invited our guests on a tour through the plant, where we were also able to inspire them with our culinary offerings. Together, we tasted samples that contain our liquid flavorings,” says Nelli Tazina, plant manager at Symrise Rogovo.

Improved production line

The liquid flavorings from the new production facility can be used by the consumer goods industry in sweets, dairy products and beverages. This expands the target customer group, which until now mostly comprised suppliers of snacks and ready meals. At the same time, Symrise is optimizing its processes with the new production line, which manufactures products sequentially preventing cross-contamination and guaranteeing high purity in the final taste solution. The plant will produce around 1,800 tons of flavorings per year, in containers ranging from 100 kilograms to 4,000 kilograms.

Symrise opened its first representative office in Russia in 1995 and has been operating an application lab in Moscow since 2002. In 2011, the company was the first in the industry to start up local production in Russia, which it expanded in 2015 with a fifth production line. Now, another line is being added in the same building – with a new product offering. The technological factory equipment installed was sourced from Russia and other European countries. “This investment clearly demonstrates our commitment to the region and the country. We strongly believe in the positive development of the Russian economy,” says Stephan Schulte, Managing Director of Symrise Rogovo. “Our company got involved in the growing market early on and has successfully developed its business in Russia. Local customers have already had positive experiences with dry taste solutions from Symrise.”
(Symrise AG)

Newsgrafik #35141
 12.07.2019

Global naturalness study first unveils APAC insights for food and beverage companies  (Company news)

- Enhance understanding of consumer attitudes on naturalness
- Identify targeted levers to capture opportunities in natural flavour solutions
- Strengthen partnership with food and beverage companies

In the last two years, Symrise has conducted a global study on the perception of naturalness covering Asia Pacific, North America, Europe, Africa and Middle East as well as Latin America. More than 13,500 consumers have been engaged globally in five field researches run by the Sensory and Consumer Insights department at Symrise. The studies have explored the attitude and perception of consumers around naturalness in foods and beverages. A first outlook on the results gives insights into the preferences related to naturalness in the Asia Pacific Region.

Consumers in Asia too, love the taste of nature and are increasingly demanding more naturalness. Food and beverage companies are catering to this need with natural product solutions and find it often challenging to best meet consumer's expectations and comply with a complex regulatory environment. Tapping on the key competences of Symrise Global Sensory and Consumer Insights in Asia, Symrise has decoded the key consumer wishes to help its customers create and deliver relevant, great tasting natural products supported by its code of nature® solutions.

This dedicated approach helped us to understand the relevance of impactful natural taste solutions for consumers in China, Japan, Australia and Thailand. Having conducted its customized consumer study in Q4/2018, Symrise Asia Pacific (APAC) was aiming at decoding the natural dimensions of four product segments: flavored water, ready to drink (RTD) tea, drinking yogurt and ready meals. Symrise selected these countries and segments based on their relevance and potential for food and beverage companies in APAC.

Key insights from Symrise Asia Pacific Customized Consumer Naturalness Study
In APAC as in other regions, the new era of naturalness is evolving fast and in diverging directions. While a broad variety of aspects contribute to a natural product perception, consumer expectations on what “natural” means to them can also differ from region to region. It ranges from knowing exactly the type of ingredients, where the ingredients in their food come from and the preparation method.

To receive a general picture first, the APAC study has summed up the market segments that are potentially more willing to pay a premium for products with natural taste solutions. They include ingredient source seekers, quality seeking affluents, health conscious shoppers and ultimate truth seekers. They represent a large portion of consumers: 49 % in Japan, 42 % in Australia, 35 % in Thailand, 27 % in China. The remaining market belongs to the profile of budget or brand conscious, with the latter still ranking the attribute “source of ingredients” very high, in all categories and countries.

In all countries, “no additives” is one in the top 3 attributes driving naturalness perception in all categories, except for drinking yogurt in Thailand, for which “health attributes” prevail. The second most frequent desired attribute cross-country and cross-category is “contains real ingredients” (e.g. fruit extracts or natural fruit juice).

China is the country where natural taste solutions show the biggest potential for food and beverages, with consumers asking for safety and health credential while taste remains a priority.

Among the different categories, Beverage is the one where the potential to leverage naturalness as a purchase driver is larger, especially in Flavored Water, with high opportunities in all countries.

Both in Japan and Australia the size of opportunity looks high for flavored water and medium for RTD tea. Flavored waters are particularly expected to be safe for long term consumption, with strong interest for “organic” and “low/no sugar claims”. In RTD tea, there is a lot of emphasis on “taste authenticity” (e.g. “freshly brewed taste”) and on “organic”, especially among ingredient source seekers and health conscious premium.

“Symrise aims to work with our customers to decode the full insights from the study and to combine them with their brands and needs to deliver winning products, to unlock their business potential in Asia Pacific with Symrise code of nature® solutions. For this reason, Symrise continues to strongly invest in Asia Pacific and works to bring to market natural solution that consumer loves” said Mr Lionel Flutto, President, Flavor, Asia Pacific, Symrise.
(Symrise AG)

Newsgrafik #34989
 23.05.2019

Symrise announces Califormulations, LLC: A unique platform to foster beverage innovation  (Company news)

— End-to-end beverage concepts for the North American market
— A new 100,000 sq ft innovation campus located in Georgia
— Integrated access to Symrise locations
— Focused innovation with high degree of agility and flexibility

Symrise has announced the company’s investment in and the creation of a strategic partnership with Califormulations, LLC, a unique platform designed to deliver end-to-end beverage innovation to consumer packaged goods (CPG) companies and their brands. Califormulations, LLC combines the expertise of Symrise, including its Beverage Innovation Centers in Laguna Beach and Teterboro, with the offering of The Green Organic Dutchman Holdings Ltd. (TGOD).

Paul Graham, President, Symrise Flavor North America, stated, “Major packaged goods companies put their focus on agile innovation to help fuel growth around their core brands. Agile venturing and creative innovation sprints will replace the traditional and often time-consuming ‘stage gate’ innovation funnel and are changing innovation sustainably.”
Califormulations, LLC fully embraces this approach. The company is run by an industry experienced management team and built on a business model that is designed for speed, agility, flexibility and focused innovation, with each investor harnessing specialized expertise.

The new platform combines beverage expertise and innovation capabilities with the ability to quickly develop shelf-ready, scalable products. Customers will have access to the expertise located at three locations: the newly formed Califormulations, LLC location in Columbus, Georgia, with 100,000 sq ft for beverage development, multi-purpose production, pilot scale flexible bottling and shelf-ready, scalable packaging; Symrise’s regional headquarters in Teterboro, New Jersey, providing global expertise in flavor solutions, including taste for sugar reduced products; and the specialized Symrise Beverage Center in Laguna Beach, California, to inspire creativity in beverage product concepts.

Utilizing the expertise located at these three locations, Califormulations, LLC in cooperation with Symrise will deliver a rapid innovation approach composed of four integrated parts: Insights & Design, Prototyping & Evaluation, Development & Production and the Activation Ecosystem.

The Symrise team brings a proven reputation in beverage innovation and incubation, a comprehensive portfolio of consumer insights, a strong footprint in beverage and CPG accounts including core listings with global brands. TGOD adds a new element to the business through their expertise in producing premium organic cannabinoids. Using sustainable growing practices, TGOD offers organic CBD and other organic cannabinoids where allowed by local laws and regulations. The end result is a unique, agile, end-to-end approach to innovation with full project management across every step.

Paul Graham concluded, “The complementary capabilities of Califormulations, LLC will foster innovation and scale new, successful brands quickly.”
(Symrise AG)

Newsgrafik #35012
 21.05.2019

Symrise presents nature's taste at PLMA 2019  (Company news)

• Focus on tasty solutions for natural and health-conscious nutritional trends
• Ideas for products based on alternative and plant proteins
• Presentation at private label trade show in Amsterdam

Visitors can "Experience Nature's Taste" at the Symrise stand at the PLMA private label trade show in Amsterdam. The company will also present concepts that food manufacturers can use to offer conscious nutrition with full flavor. At Stand F-8105 in Hall 8, Symrise will demonstrate what variety on supermarket shelves can look like for conscious consumers: low- or non-alcoholic variants of popular beverages; modern, low-calorie ready meals, and snacks and solutions for products with alternative and plant proteins.

PLMA, the Association of Private Label Manufacturers, will hold its European trade show in Amsterdam from May 21 to 22, 2019. Symrise will attend with natural and exciting creations that pick up on and develop current nutrition trends. In concrete terms, the company will present its natural offerings in various product categories, in keeping with the slogan "Experience Nature's Taste." In doing so, Symrise is responding to the growing demand for natural and authentic food and beverage products, going beyond taste with its comprehensive, sustainable approach.

Celebration without remorse
Teenagers and young adults are increasingly turning to non-alcoholic drinks when they spend time together. A reason is their increased health-consciousness and awareness of their own images on social media. Beverage manufacturers can expand their product range to reach this customer group, winning them over with ideas about natural, non-alcoholic and low-alcohol flavors. Symrise offers various solutions for celebration without intoxication. This is particularly interesting with regard to the highly popular special – and often regional – craft beers, since non-alcoholic variants of these beverages are difficult to produce.

Symrise's natural hop extracts make non-alcoholic beers possible that have the characteristic bitter-tart flavor of an Indian Pale Ale. Lovers of cocktails will also find what they're looking for: With its long experience in distillation and flavor extraction processes, Symrise has created a juniper-based raw material that affords a gin and tonic flavor even when the beverage contains little or no gin.

Meat-free alternatives
Products based on alternative and vegetable proteins are very popular. Consumers want to reduce their meat consumption while eating a diet that is high-protein, nutritionally conscious and sustainable. At the same time, all components such as taste, consistency and appearance must meet consumers' requirements for meat-free or meat-reduced foods. When it comes to vegetarian and vegan foods, Symrise is taking innovative paths by creating compelling taste profiles for meatless meatballs, falafel, etc. Symrise is thus satisfying the global demand for meat-free alternatives and providing taste profiles with an enjoyment factor.

Organic convenience foods on the advance
Organically grown and processed products are currently among the most important nutritional trends. Across Europe, the market for animal, vegetable and environmentally-friendly food products grew by 22 percent from 2016 to 2017. The market for organic convenience foods is also showing strong growth of four to five percent annually in Germany and France, and eight to nine percent in Italy and Spain. Symrise brings its expertise in the processing of herbs and vegetables to bear with its vegetable couscous, creating an intense, healthy and pleasurable experience that requires simple preparation and has an all-natural taste.

Snack variety
What applies to main meals has also reached the world of snacks. The demands of many customers are increasing, and foods with less sugar and more flavor varieties are very popular. Crackers with coconut and sesame seeds with a sugar and salt glaze provide an unexpected and well-rounded combination that is made from all-natural ingredients. Symrise is also rethinking the classic granola bar: the carrot-orange bar contains 30 percent less sugar than comparable products and is also a proven provider of vitamin A.

Symrise will present a broad spectrum of further ideas, concepts and products at the trade show that enable food and beverage manufacturers to align their product range with the growing demand for natural and healthy products.
(Symrise AG)

Newsgrafik #34955
 09.05.2019

Symrise Trading Update January - March 2019  (Company news)

Symrise posts strong growth of 9.3 % in the first quarter
• Group sales rise to € 848.8 million
• Organic growth, adjusted for exchange rate effects, of 8.2 %
• Company reaffirms 2019 guidance and long-term targets until the end of 2025

The Symrise Group remains on track for strong growth in the fiscal year 2019 with a high sales increase by 9.3 % to € 848.8 million (Q1 2018: € 776.9 million) in the first quarter. All segments benefited from good demand. Organic sales growth in the first quarter was up 8.2 %.

"We are off to a dynamic start into the year and consider ourselves very well positioned with our strong market presence," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. "Our targeted capacity expansion measures continue to pay off. This has been accompanied by consistently good demand from our customers. Once again, all segments achieved gains and contributed to the growth of the Group. Despite the cautious economic outlook, we are confident about the development of our business in the coming months. We have substantiated our full-year guidance and our long-term ambitions with the updated targets. Extending through to 2025, they call for an annual organic growth of 5–7 % (CAGR)."

Scent & Care with high sales growth in particular for Fragrances
The Scent & Care segment achieved a very good sales increase of 10.7 % to € 367.3 million (Q1 2018: € 331.8 million). Organic sales growth was 9.1 %.

The Fragrance division saw a significant increase in sales, driven primarily by the Fine Fragrances application area and the new area of Consumer Fragrances, which combines Beauty Care and Home Care applications. In both application areas, sales were up by double-digit percentages, resulting from a combination of strong demand and price increases. The Oral Care business unit achieved high single-digit organic growth, especially in the EAME region and in North America.

Sales growth was also very strong in the Cosmetic Ingredients division, above all in the North America and Asia/Pacific regions.

The Aroma Molecules division benefited from robust demand for fragrance ingredients and menthol, especially in the EAME and Asia/Pacific regions.

Flavor segment reports sales growth in all application areas
In the Flavor segment – the business activities with flavors for foods and beverages – sales increased by 8.3 % to € 315.6 million (Q1 2018: € 291.2 million). All application areas and regions had increases in sales volumes. Adjusted for exchange rate effects, organic growth amounted to 6.7 %.

In EAME, applications for beverages and savory products delivered the biggest increases, especially in the national markets of Germany, Russia, Ireland and the UK.

The Asia/Pacific region achieved with applications for beverages and savory products high single-digit or even double-digit percentage growth rates. The trends were especially pleasing in Indonesia, Thailand and India.

Sales growth in the Beverage business unit was particularly healthy in North America, mainly as a result of new business with global and regional customers.

Business in Latin America also showed dynamic growth, with double-digit percentage gains in all application areas. Demand for beverages was particularly strong in the national markets of Brazil and Mexico.

Nutrition shows dynamic trend in Pet Food and Probiotics
The Nutrition segment, which includes the Diana division with Food, Pet Food applications, as well as Probiotics, achieved a 7.9 % increase in sales to € 165.9 million (Q1 2018: € 153.8 million). In local currency the organic growth was even higher, at 8.8 %.

Demand for Food applications increased at a more moderate pace in the first quarter. The Asia/Pacific and Latin America regions achieved good growth in the national markets of Australia, Indonesia and Mexico.

The Pet Food business unit showed a highly dynamic trend in the first quarter, with double-digit organic growth driven by rising customer demand and price adjustments. North America in particular performed very well.

The application area Probiotics also posted double-digit growth, especially in EAME.

Looking ahead to current fiscal year with confidence
After a dynamic start to the year, Symrise confirms its targets for the current fiscal year. The group intends to significantly exceed the anticipated worldwide market growth rate for 2019, projected by experts to lie in the range of 3–4 %.

Under its updated long-term targets, Symrise aims to increase sales to around € 5.5 to 6.0 billion by the end of 2025. This increase is to be achieved through annual organic growth of 5–7 % (CAGR) and additional targeted acquisitions.

In January Symrise announced the planned acquisition of the US-American company ADF/IFD, a meat and egg-based protein specialist. The transaction is subject to customary regulatory approvals. The deal is expected to close in the second half of 2019.
(Symrise AG)

Newsgrafik #34793
 26.03.2019

Symrise successfully continues profitable growth course in 2018  (Company news)

• Strong organic sales growth of 8.8 %
• Sales increase of 5.3 % to € 3,154 million (reporting currency)
• Solid earnings with EBITDA at € 631million and EBITDA margin at 20.0 %
• Net income increases to over € 275 million
• Dividend increase to € 0.90 per share proposed

Symrise AG took full advantage of its growth opportunities in 2018 and successfully overcame headwinds resulting from external factors. Taking into account portfolio and exchange rate effects, sales increased by 5.3 % to € 3,154 million (2017: € 2,996 million). On organic basis, sales growth even amounted to 8.8 %, exceeding the increased guidance issued in late fall. This outstanding performance was carried by all segments and regions. Despite targeted investments in increased capacity at locations in China and the USA and negative effects from exchange rates and raw material costs, Symrise retained its earnings power. The Group achieved earnings before interest, taxes, depreciation and amortization (EBITDA) of € 631 million (2017: € 630 million). With an EBITDA margin of 20.0 %, profitability remained healthy and within the target corridor of 19–22 %.

Picture: Developing resources (Picture by Symrise AG)

"In 2018 we seamlessly continued our success story. Symrise again grew profitably and outperformed the market. We identified and successfully capitalized on growth opportunities in every business segment. We also invested in future growth and added to our capacity. Although we were not able to counteract all of the headwinds caused by high raw material prices and negative currency effects, we still operated with a healthy profitability. We want our shareholders to participate in this success. At the Annual General Meeting, the Executive Board and Supervisory Board will propose a dividend increase to € 0.90 per share for the fiscal year 2018," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. "Despite the anticipated economic slowdown, we have made a confident start to the new fiscal year. We have substantiated our long-term ambition with the updated forecast. It extends into the year 2025 and provides for a strong increase in sales with further improved profitability."

Sales growth in 2018 exceeds target
Symrise experienced strong demand across all segments and regions in 2018 and increased its sales to € 3,154 million (2017: € 2,996 million). The Group achieved strong organic growth of 8.8 %, exceeding the increased guidance announced in November, which indicated growth of over 8 %. In reporting currency, taking into account portfolio effects from the acquisitions of Cobell and Citratus and exchange rate effects, Group sales were up 5.3 % in the reporting period. Symrise experienced unfavorable exchange rate effects especially through the strong Euro in relation to the US-Dollar. Symrise again grew significantly faster than the relevant market for fragrances and flavors, where growth in 2018 was in the 3–4% range.

Dynamic trend in Latin America and Asia/Pacific
The growth driver at regional level was once again Latin America with an outstanding double-digit organic growth rate of 16.2 %. Business in the EAME and North America regions developed also highly positively, with an organic increase of 6.4 % and 6.1 %, respectively. In the Asia/Pacific region, Symrise achieved strong organic sales growth of 12.4 %. Overall organic sales growth in the dynamically expanding Emerging Markets reached 11.7 %. In these fast-developing markets, Symrise generated 43 % of its total sales.

Healthy profitability despite investments and external factors
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 631 million (2017: € 630 million). EBITDA was thus on prior year level, despite investments in additional capacity and negative effects from volatile exchange rates and high raw material costs. Symrise, for example, invested in a new Nutrition site in the US state of Georgia and a new production facility for fragrances and flavors in Nantong, China, which is currently being built. The industry-wide shortage of raw materials, including the key raw material Citral, which already prevailed in 2017, intensified in the past fiscal year. However, thanks to its own raw material base and extensive backward integration, Symrise was able to meet supplier obligations at all times and in full throughout the year. In addition, the Group actively implemented price increases to compensate for higher raw material costs. Despite these challenges, Symrise maintained profitability at a solid level and achieved an EBITDA margin of 20.0 %. As a result, Symrise was once again one of the most profitable companies in the industry.

Net income for the Group increased by 1.9 % to € 275 million (2017: € 270 million). Earnings per share increased from € 2.08 to € 2.12. The Executive Board and Supervisory Board will propose an increase in the dividend to € 0.90 per share for the fiscal year 2018 (2017: € 0.88) at the annual general meeting on 22 May 2019.

Increase in operating cash flow
Symrise grew its operating cash flow by € 46 million to € 442 million (2017: € 396 million). This represents an increase of 12 % and can be attributed primarily to a smaller increase in working capital during the year under review.

Net debt including pension provisions and similar obligations decreased by € 29 million to € 1,893 million (2017: €1,922 million). The ratio of net debt including provisions for pensions and similar obligations to EBITDA remained unchanged at 3.0 (31 December 2017: 3.0). Due to the realized acquisitions, this value is temporarily above Symrise\'s target corridor of 2.0 to 2.5.

With an equity ratio of 39.5 % at 31 December 2018 (31 December 2017: 37.8 %), Symrise sees itself financially very well positioned to sustainably advance the future development of its business.

Scent & Care segment
Scent & Care increased its sales to € 1,324 million and achieved very strong organic growth of 8.9 % (2017: € 1,263 million). In reporting currency, taking currency effects and the Citratus acquisition into account, the segment posted 4.8 % growth. The Cosmetic Ingredients division developed particularly dynamically with double-digit organic percentage growth. Strong impulses came in particular from the national markets of China, Brazil and Japan. The Aroma Molecules and Fragrances division also performed well. Demand was particularly strong for applications with menthol, for fine fragrances and personal care products.

Scent & Care increased its EBITDA to € 254 million after € 248 million in the prior year period. The EBITDA margin was 19.2 % (2017: 19.6 %). The slight decline in the margin is mainly due to higher raw material costs, especially for perfumery raw materials.

Flavor segment
The Flavor segment experienced strong organic growth of 9.5 %, with sales increasing to € 1,191 million (2017: € 1,102 million). Taking currency effects into account and the portfolio effect from the Cobell acquisition, sales in the segment grew by 8.1 % in reporting currency. All regions and application areas contributed to this positive development. Flavor benefited in particular from strong demand in the EAME region, which achieved impressive double-digit growth. Growth was driven furthermore by applications for sweets and beverage products.

EBITDA in the Flavor segment, at € 244 million, was slightly higher than the prior-year figure (2017: € 243 million). The EBITDA margin stood at 20.5 % (2017: 22.0 %) and was influenced by the currently still lower profitability of the Cobell business and higher raw material costs.

Nutrition segment
Nutrition increased organic sales in the past fiscal year by 7.4 % to € 639 million (2017: € 631 million). In the reporting currency, including portfolio and currency effects, the segment grew by 1.2 %. The strongest impetus came from the Pet Food application area. The Food application area also performed well with double-digit growth.

In the year under review, Nutrition achieved an EBITDA of € 132 million (2017: € 139 million). The decline in earnings compared with the previous year is attributable to two factors: Investments in the new Diana Food location in the USA and a lower contribution to earnings from Probi due to a temporary inventory decrease by a major customer in the first half of the year. Starting in the third quarter, order intake largely returned to normal. Despite these special effects, the EBITDA margin was a good 20.7 % (2017: 22.1 %).

Confident outlook for 2019 and ambitious long-term targets until the end of 2025
Symrise is looking ahead to the current fiscal year with confidence. The Group again aims to exceed the overall growth rates in the relevant market. The market is projected to grow at a rate of 3–4 % worldwide. In addition, Symrise is targeting an EBITDA margin of around 20 % despite the anticipated economic slowdown, ongoing volatility in exchange rates and a tight market for raw materials. Overall, with its global presence, diversified portfolio and broad client base, Symrise believes it is well positioned to achieve these goals. With strategic investments, the Company plans to continue its expansion in high-growth, high-margin business segments. Against the background of the tense situation on the raw material markets, the expansion of its own backward integration will continue to play a key role in the future. In addition, long-term contracts and close cooperation with producers will secure Symrise\'s access to high-quality raw materials.

At the Capital Markets Day in January 2019, Symrise presented its long-term targets. They underscore the Group\'s ambition and now extend to the end of fiscal year 2025. By then, Symrise aims to increase sales to around € 5.5 to 6.0 billion. This increase is to be achieved through annual organic growth of 5 to 7 % (CAGR) and additional targeted acquisitions. Profitability is expected to improve further. Long-term, Symrise aims to achieve an EBITDA margin within the target corridor of 20 to 23 %. To this end, the Group will continue to systematically implement its proven strategy and closely align innovations to customer and market requirements. Furthermore, Symrise will continue to take advantage of megatrends. In addition to the traditional business with flavors and fragrances, the expansion of the portfolio will increasingly focus on adjacent, high-margin applications. For example, Symrise intends to open up growth areas, with focus on natural, sustainable product solutions. Digital business processes should also contribute to growth and profitability.
(Symrise AG)

Newsgrafik #34678
 12.02.2019

Gold for Symrise: sustainability management honored  (Company news)

• Rating agency EcoVadis awards Symrise maximum ratings for sustainable management for the 6th time in a row
• Group among the best 1 % of all rated companies in the chemical sector worldwide

Photo: Hans Holger Gliewe, Chief Sustainability Officer of Symrise AG

The sustainability rating agency EcoVadis has once again honored Symrise for its outstanding performance in sustainability management. For the sixth time in a row, the fragrance and flavor manufacturer has achieved EcoVadis Gold status for its proven sustainability performance. According to the rating, the company's ecological, social and ethical responsibility is exemplary: The Holzminden-based company once again met the constantly increasing requirements of the rating agency this year and maintained its leading position in the global chemical sector again.

Compared to the previous year, Symrise once again improved its overall result with 73 out of a possible 100 points. The performance achieved convinced again, especially in ecological sustainability management and sustainable procurement, even with stricter auditing standards.

Comprehensive sustainability assessment at all levels of action
Ecovadis uses 21 environmental, social, ethical and sustainability criteria in the supply chain to compare the performance of companies in different sectors. On this basis, the integration of essential sustainability criteria into Symrise AG's strategy, business model and management system can be evaluated comprehensively and systematically. The result of this rating serves stakeholders as the basis for their cooperation with the company on the basis of criteria of sustainable management.

Hans Holger Gliewe, Chief Sustainability Officer of Symrise AG, explains: "Our customers, employees and investors have high expectations of our sustainability management in particular. As a key company in the food and consumer goods sector, we must fully live up to these expectations in order to secure and expand our outstanding competitive position in the future. The award of our commitment with the best rating by the rating agency EcoVadis is therefore a very special distinction that spurs us on to consistently pursue our successful sustainability strategy".
(Symrise AG)

Newsgrafik #34667
 05.02.2019

Beverage competition: Symrise taste helps propel aloe vera and curry sodas to the winner's podium  (Company news)

• Jury assesses concept and sensory impressions
Symrise supports student innovation competition

At the IGL innovation competition for food and beverages, which the Technical University of Munich organizes, the winners in the “Beverages” category used Symrise taste components in their creations. The “Hallo eVera” aloe vera soda concept took first place in the competition, while “Cärry” curry soda clinched second place. The jury assessed the beverages based on the criteria of “innovation/concept,” “sensory impressions” and “overall product.” Held at the Academic Faculty of Brewing and Food Technology at the Weihenstephan Science Center, the competition awards beverages and foods developed by students.

Photo: The winning Symrise beverages in the IGL TUM contest

“We’re delighted that the students who used our products won gold and silver in the ‘Beverages’ category,” says Wilhelm Resanovic, Global Account Manager Beverages at Symrise and on-site mentor at the IGL. “Symrise would like to continue to be a strong partner to students in the future and help them with their training through the IGL competition.” The company also plans to support students in the years to come with technical expertise, market data and figures, marketing information and sensory and formula-based product solutions.

Employers are interested in IGL participants
In addition to their regular lectures, students can also participate in the innovation competition. They have a period of one year to develop their own beverage or food, and must take into account every aspect of the value chain – from taste to production. In one concept, they also put a great deal of thought into their target group and sales. During a “preliminary tasting round,” a jury of 50 samples and evaluates the concepts and analyzes the first prototype for its sensory impact. The jury then invites the groups with the most promising product ideas to the final round.

Student participants and winners of the IGL can now look forward to some special attention: Employers take notice of the event. The competition has also become something of a platform for product creators, having led to five spin-offs over the past two years, including the “BABO blue” mixed beer drink, which is now sold throughout Germany.
(Symrise AG)

Newsgrafik #34634
 29.01.2019

Symrise updates long-term targets and aims to further expand its business until 2025  (Company news)

• Target corridor of 5 to 7 % for average annual sales growth (CAGR)
• Increased profitability with EBITDA margin in the range of 20 to 23 % from 2020 onward
• Continuation of successful strategy
• Expansion of portfolio and sharpening the product mix: focus on high-margin applications
• Updated targets for sustainability balance planned

Symrise AG announces its new long-term targets until 2025 for the first time at its Investors' Day in Charleston, South Carolina, USA. The Company aims to increase its sales to € 5.5 to 6 billion. This target is supposed to be achieved with an average annual organic sales growth (CAGR) of 5 to 7 % and strategic acquisitions. During that period, profitability is planned to be further increased at a high level. From 2020 onward, Symrise intends to generate an EBITDA margin within the target corridor of 20 to 23 %. At the same time, Symrise will remain fully committed to its proven strategy. As in the past, the Company will focus closely on customer and consumer needs and convert market trends into concrete business opportunities at the earliest possible stage. Existing strengths such as the comprehensive product portfolio should be used and expanded in a targeted manner. Symrise plans to focus in particular on innovative and high-margin applications. The Company intends to identify and enter growth opportunities in the areas of naturalness and health. Digital business processes will also contribute to the growth strategy.

“We look back on the development of Symrise with pride. We have achieved dynamic growth and doubled our sales from 2008 to 2017 to € 3 billion. For 2025, we have set the target to increase sales to € 5.5 to 6 billion. Our strategy, with its three pillars growth, efficiency and portfolio, has proven its worth. It is the foundation for our long-term, profitable growth”, said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “We will make even more systematic use of our strengths and enter adjacent growth areas, concentrating on the expansion of our global presence and our portfolio in high-margin business areas. We will also consistently expand our product mix, in particular with natural and health-related applications.”

Olaf Klinger, CFO of Symrise AG, added: "With our targeted investments in future growth and our reinforced focus on cash flow, we will create a solid basis for the Symrise stock to remain an attractive investment for our shareholders. We will further keep an eye on our healthy capital base."

Securing long-term profitable growth
Symrise has built its updated, long-term plan on a strong foundation. With targeted investments, the Company intends to expand in high-growth business areas and to broaden its own natural raw material base. Symrise plans to further develop especially high-demand application areas such as Menthol, Cosmetic Ingredients, Food and Pet Food at an accelerated pace. The Company has largely completed its current capacity expansions. It will continue to maintain a balanced customer portfolio, comprising one-third each of globally, regionally and locally active customers. In addition, Symrise remains committed to the target of generating more than half of its sales in the fast-growing Emerging Markets.

Symrise already today has a broad portfolio that is unique in the industry. The Company expanded its strategic footprint beyond the conventional Fragrance and Flavor Business at an early stage. Today, Symrise generates one third of its sales through non-traditional applications, such as pet food and baby food, probiotics, active cosmetic ingredients and functional, health-supporting ingredients. By 2025, it aims to further increase that share. Natural product solutions for body care and foods are also playing an increasingly important role, as consumers attach greater importance to conscious nutrition choices and personal care.

Timely commercialization of innovations and focus on digitization
Symrise will further intensify its closely linked cooperation with its customers in the coming years. Therefore, the Company is fully committed to the increasing transition from a product developer and manufacturer to a comprehensive solution provider. Through digitized and networked processes, customer needs can be precisely identified and served across the entire supply chain.

Moreover, Symrise aims to rapidly commercialize its innovation leadership. Innovative approaches, for example using Artificial Intelligence for the creation of fine fragrances, should lead to new, market-ready products. The Company also wants to stronger cross-link the various application areas of its portfolio and use the knowledge transfer to drive innovation.

Outlook – long-term targets for 2025
Symrise intends to achieve its long-term targets through to the end of the fiscal year 2025 with targeted investments in additional organic growth and strategic acquisitions. The Company aims to increase sales to € 5.5 to 6 billion. The average annual organic sales growth is targeted in the range of 5 to 7 %. Symrise remains committed to generating more than half of its sales in Emerging Markets. With its favorable product mix and efficiency improvements, Symrise aims to generate an EBITDA margin in the range of 20 to 23 %. Most of the major investment projects will be completed by 2022. As a result, the Company aims to lower CAPEX to the range of 4 to 5 % by 2025. The Company will continue to create sustainable value for its investors and retain a dividend policy with a pay-out ratio of 30 to 50 %. In all aspects of its business activities, Symrise will remain committed to its sustainability targets and will therefore strive to reduce its ecological footprint by 50 %.
(Symrise AG)

Newsgrafik #34531
 21.12.2018

Symrise is Germany's most sustainable large corporation  (Company news)

-Fragrance and flavoring manufacturer wins the German Sustainability Award 2019
-Commitment to sustainability in the supply chain recognized

Symrise’s consistent commitment to sustainability was awarded first place in the category “Germany’s most sustainable large corporations 2019.” In addition to Symrise’s commitment to climate protection, the decisive factors were mainly its efforts to preserve biodiversity and to support the living conditions of small-scale farmers along the supply chain who consistently meet the highest ecological and social standards. After receiving an award in 2012 and being a finalist in 2016, Symrise has now received the coveted prize for a second time.

In a ceremony attended by 1,200 top-ranking guests from politics, industry, cities, research and society, Symrise’s Chief Executive Officer Dr. Heinz-Jürgen Bertram accepted the German Sustainability Award from Environmental Minster Svenja Schulze at a gala event on December 7, 2018, in Düsseldorf. Further laudators included Economics Minister Peter Altmaier, Minister of Justice and Consumer Protection Dr. Katarina Barley, Development Minister Dr. Gerd Müller, all representatives of the German Federal Government, and the patron of the event, former Federal President Christian Wulff.

Globally successful with sustainable supply chains
“Symrise not only uses its significant influence to secure bio-based raw materials for its own needs. At the same time, it supports threatened ecosystems with comprehensive sustainability management that has been implemented in all core processes of the company,” the jury noted in its decision. The company realized early on that the need for natural and sustainably produced raw materials is constantly growing, and that these materials are also threatened by climate change and the decline of biodiversity.

For the approximately 10,000 raw materials that Symrise uses, the company predominantly draws on plant-based materials. These come in part from sensitive ecosystems, such as the Amazon rainforest, which Symrise is helping to protect with its approach to sustainability. For years now, the pioneering company based in Holzminden has been active in its growing regions across all continents and has supported the local populations. Projects of special note include sustainable vanilla cultivation in Madagascar and responsible sourcing of bio-based raw materials for cosmetic ingredients in the Amazon region of Brazil, in the context of which the company supports 5,500 local small-scale farmers. In these and other regions, Symrise educates farmers in environmentally effective cultivation practices, grants microcredits and invests in educational and professional opportunities, all of which demonstrably improve the socioeconomic conditions of the small-scale farmers.

Ambitious climate goals
“We see the confirmation of our strategy through the German Sustainability Award as a great honor, and this motivates us to continue,” Bertram says. “As Germany’s most sustainable large corporation, we take our position as a role model seriously. We support biodiversity in our growing regions and support local farming communities. In the process, environmental aspects also play a decisive role. In the regions of origin of our raw materials and in our production sites, we are implementing comprehensive measures to protect the environment. And it has paid off. For example, in 2016 we had already reached the goals for our environmental footprint that we had set for 2020. That’s why we have now defined even more ambitious sustainability objectives for ourselves. For example, by 2030 we want to reduce our total CO2 emissions by 18 percent.” In 2017, Symrise was the first company in its sector to commit to a climate strategy that meets the strict criteria of the Science Based Targets Initiative (SBTI), whose participants commit to setting a science-based climate goal aligned with the objectives of the Paris Agreement to limit global warming to a figure well below 2°C. The jury of the most important sustainability award in German-speaking countries especially commended the dedication of the company management within the supply chain and the company’s continual improvements in its own operations.
(Symrise AG)

Newsgrafik #34520
 19.12.2018

UEBT membership: Symrise strengthens its commitment to biodiversity conservation and ...  (Company news)

... ethical sourcing

• Admission as company member to the Union for Ethical BioTrade
• First leading Flavor & Fragrance house to join UEBT as a whole
• Reinforces the corporate implementation of global biodiversity objectives within own operations and throughout the value chain

Symrise AG has successfully passed the UEBT membership assessment and is now expanding its UEBT membership to the entire corporation. For a couple of years, Symrise Madagascar and Brazil have been members of the Union for Ethical BioTrade (UEBT). During this time, they have been successfully implementing a number of comprehensive programs. They are designed to promote sustainable cultivation and collection practices for natural raw materials and socioeconomic support for local smallholder farmers and collectors.

“We congratulate Symrise on its company-wide commitment to sourcing with respect for people and biodiversity. This is a significant milestone as Symrise becomes the first leading fragrance and flavor house to join UEBT as a whole. UEBT membership means that Symrise has become part of a growing movement of companies committed to improving their impact on biodiversity along their supply chains” says Rik Kutsch Lojenga, ED of UEBT. As a precondition to becoming a global UEBT member, Symrise has successfully passed a membership assessment where adherence of the company’s biodiversity policy commitments and its ethical sourcing system with the key indicators of the UEBT Ethical BioTrade Standard has been verified. In addition, Symrise has developed work plans to continuously improve its management systems and procedures to promote positive impact for people and biodiversity across its entire business ecosystem.

Biodiversity – an invaluable source of inspiration and innovation
With its global UEBT membership, the German based ingredient manufacturer has made another strong commitment to reinforce its ethical sourcing approach in order to further promote internationally recognized biodiversity objectives as well as fair labor conditions and human rights criteria across its business ecosystem. This approach is based on a deep understanding that biodiversity means more than a source of precious natural raw materials to Symrise. It also serves the company as an invaluable and irreplaceable source of innovation and inspiration for unique flavors, fragrances as well as cosmetic and functional ingredients. “Engaging for people and biodiversity in times of global environmental change and social transition is in the self-interest of our company. For this reason, we do everything to ensure that our sourcing systems operate well within planetary, social and ethical boundaries and continuously provide our markets with precious natural raw materials,” says Dr. Heinz Jürgen Bertram, CEO of Symrise.

Creating sustainable blueprints for the Flavor & Fragrance industry
In times of increasing consumer demands for natural products and ingredients, the value of biodiversity and natural capital increases for the consumer goods industry and its suppliers, such as Symrise. It therefore requires resolute actions from all industry actors to stop global biodiversity loss. The good practices UEBT sets through its principles and standards will increasingly serve Symrise and its suppliers as a compass on how to grow, collect and harvest natural ingredients in an utmost sustainable and ethical manner. “Our ambition is to set the standard, pace and direction for sustainable sourcing practices across the entire F&F industry. Together with likeminded partners, such as the Union for Ethical BioTrade, we want to create blueprints for our industry and expect others to follow on our journey towards making our planet a better place for people and biodiversity”, says Hans Holger Gliewe, Chief Sustainability Officer of Symrise.

Besides its key role for sustainable development, the commercial relevance of biodiversity to the Flavor and Fragrance industry constitutes a decisive factor. Sascha Liese, Corporate Sustainability Manager and Biodiversity expert at Symrise explains: "Biological diversity" stands for "nature" and the "variety of life". In other terms, biodiversity ensures nutrition, delivers good taste, promotes health, supports wellbeing, creates beauty, inspires human culture, and touches the senses. And this is exactly what our business model is all about.”
(Symrise AG)

Newsgrafik #34437
 27.11.2018

Symrise continues dynamic growth track   (Company news)

• Strong organic sales growth of 8.8 %
• Group sales including acquisitions up 10.3 %
• EBITDA margin at a healthy 20.0 %
• Entering the age of digital perfume creation with Artificial Intelligence
• Symrise increases targets for 2018 again: organic growth of more than 8 % expected

Following a very dynamic first half of the year, Symrise AG successfully continued its growth course in the third quarter. All segments and regions contributed to this positive trend. The Group achieved an organic sales increase of 8.8 % in the first nine months of the year. Taking portfolio and exchange rate effects into account, sales in reporting currency were up 4.6 % to € 2,382.6 million (9M 2017: € 2,278.4 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 475.7 million (9M 2017: € 485.2 million). The EBITDA margin remained at a good level of 20.0 %. Based on the positive nine-month development, Symrise raises its sales objective, which had already been increased at mid-year. Symrise aims at outperforming market growth and at achieving organic sales growth of more than 8 % in Fiscal Year 2018.

"Symrise held its course extremely well in the third quarter, despite the headwinds from volatile exchange rates, raw material shortages and increased raw material prices. We fully utilized growth opportunities and reliably supplied our customers. Based on our strong nine-month performance we are optimistic for the remaining weeks of the year and raise our sales guidance. We are committed to making 2018 yet another successful year for Symrise and its customers and will work with full dedication during the remaining weeks. Moreover, we are already laying the foundation for our future growth and are consistently implementing our investment programs. After putting additional capacity for Cosmetic Ingredients into operation in the USA, we have just a few days ago opened a new production facility for natural Food Ingredients. We will continue to manufacture our products close to our customers which allows us to maintain a direct presence in key customer markets and to make best possible use of growth opportunities," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.

Strong organic growth in sales
In the first nine months of the year, Symrise increased its sales in local currency by 10.3 %. Organic growth (excluding acquisitions) amounted to 8.8 %. Considering portfolio effects, such as the contribution from the recently acquired companies Cobell and Citratus, and exchange rate effects, sales grew by 4.6 % to € 2,382.6 million (9M 2017: € 2,278.4 million). Symrise was thus once again one of the fastest-growing companies in the industry. All segments and regions experienced strong demand and contributed to the positive business performance. As in the first six months of the year, the sales trend in reporting currency was impacted by unfavorable exchange rates, in particular by the appreciation of the euro against the US dollar.

As before, Latin America was the key growth driver at the regional level, with organic sales growth of 19.2 %. In the third quarter, the region increased sales by even 25.2 %. In the Asia/Pacific region, sales grew by 12.9 % in the first nine months, followed by North America and EAME with growth rates of 5.7 % and 5.5 %, respectively. In Emerging Markets, sales increased by 12.8 %. These markets, which are characterized by dynamic growth, contributed 43 % to total sales.

Profitability at a good level despite challenging environment
In the first nine months of 2018, Symrise generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € 475.7 million (9M 2017: € 485.2 million). This result is impacted by increased expenditures for strategic growth projects such as the new Diana site in Georgia. Additionally, significantly higher costs for key raw materials and unfavorable exchange rate effects impacted profitability. Moreover, the result reflects a one-off effect: The production of menthol and cosmetic ingredients at the US-site in Charleston, South Carolina had to be temporarily suspended due to Hurricane Florence. Despite the challenging environment, Symrise operated with good profitability and delivered an EBITDA margin of 20.0 % which is well within the medium-term target corridor of 19 to 22 % (9M 2017: 21.3 %).

Scent & Care segment
The Scent & Care segment, which includes applications for fragrances and cosmetic ingredients, achieved a high 9.2 % organic sales increase in the reporting period. Even with the continuing tense situation of the raw material markets, especially with the supply of important fragrance substances, the segment sustained its dynamic development of the first six months. Sales in Scent & Care were up 7.4 % in the third quarter as compared to the strong Q3 figures of the previous year. Taking into account negative exchange rate effects and the portfolio effect from the acquisition of Citratus, the segment posted a 4.0 % sales increase to € 998.6 million (9M 2017: € 960.1 million) in reporting currency for the nine-month period.

Symrise has seen the strongest growth in the Cosmetic Ingredients and Aroma Molecules divisions, which both reported double-digit organic growth. In the Cosmetic Ingredients division, demand was strong above all in the Latin America and Asia/Pacific regions. Sales were up significantly, especially in Brazil, Argentina and Mexico as well as China and India. The Aroma Molecules division achieved strong increases in the high single-digit or even double-digit percentage range in all regions, with strong impetus coming especially from the Fragrance Ingredients application area.

The Fragrance division also performed well and posted high single-digit increases. The failure of important suppliers to deliver fragrance raw materials – a situation, which began already in the first half of the year – and the overall rise in price levels for raw materials impacted the third quarter as well. Scent & Care benefited from its comprehensive backward integration and did not experience any supply disruption. After the price increases already implemented in the previous quarters, Symrise continued to engage in close customer dialogues in the third quarter regarding the pass-on of price increases. The continuing trend of rising raw material costs will require further price adjustments and Symrise will therefore continue talks with its customers.

At the same time, the Group is driving forward research and development. In partnership with IBM Research, Symrise has developed a method to create perfumes based on digital fragrance models supported by Artificial Intelligence. The project combines human expertise with computer intelligence to compose novel scents. The first fragrances created with this new, data-based approach will be brought to market in 2019.

In the reporting period, Scent & Care recorded an EBITDA of € 191.8 million. That figure was down slightly as compared to the same period a year earlier, mainly due to the higher raw material prices (9M 2017: € 196.2 million). The EBITDA margin amounted to 19.2 % (9M 2017: 20.4 %).

Flavor segment
The Flavor segment, which includes taste applications, achieved organic growth of 10.2 % in the first nine months. With exchange rate effects and the acquisition of Cobell taken into account, the segment experienced 8.3 % growth in reporting currency in the period under review and sales of € 912.5 million (9M 2017: € 842.6 million).

The Latin America region achieved the strongest organic growth, with sales increases well within the double-digit percentage range over the course of the year. This strong development was supported in particular by new business wins with global customers in the beverages application business. Significant contributions came especially from Uruguay, Brazil and Mexico. The North America region benefited from strong demand for flavorings for the beverage industry. The EAME region showed a very positive development as well. Growth impetus was delivered by Western Europe and Russia, where demand was strong, especially for applications in sweet and dairy products. The Asia/Pacific region showed a very dynamic trend as well, delivering double-digit organic growth in all application areas. Strong year-on-year sales increases were seen especially in China, India and Vietnam.

The earnings situation in the Flavor segment was affected by the overall rise in raw material costs. In addition, the lower margin of Cobell had an impact. Nevertheless, the segment increased the EBITDA by € 3.6 million to € 187,0 million (9M 2017: € 183.4 million). The EBITDA margin stood at a solid 20.5 % (9M 2017: 21.8 %). As in the previous months, the segment Flavor remains also engaged in close dialogues with its customers regarding the pass-on of price increases.

Nutrition segment
The Nutrition segment, which includes the Diana division with applications for food, pet food and baby food as well as probiotics, achieved organic growth of 5.7 % in the first nine months. In the third quarter, organic growth in sales reached even 10.0 %. Taking into account exchange rate effects, the segment achieved sales of € 471.4 million in reporting currency after € 475.7 million in the prior year period. The slight decline reflects the announced destocking by a major customer of Probi in the first half of the year. In the third quarter, the order intake for probiotics normalized to a large extent.

The Pet Food application business again experienced strong organic growth in the high single-digit percentage range, benefitting especially from strong growth impetus from the Latin American region, above all from Mexico, Chile and Colombia. Dynamic growth was also seen in food applications, with the North America region posting particularly strong increase.

Nutrition generated an EBITDA of € 96.9 million in the reporting period (9M 2017: € 105.6 million). The temporary decline mainly reflects the lower sales contribution from Probi in the first six months and ramp-up costs for the new Diana site in the USA. Despite these one-off effects, the EBITDA margin stood at a good 20.5 % (9M 2017: 22.2 %).

Symrise again increases sales target for 2018
Against the background of the strong development in the first nine months and a promising start into the fourth quarter, Symrise is optimistic for the remaining weeks of the current fiscal year. The Group once more increases its 2018 sales target which had already been raised in August. For the Fiscal Year 2018, Symrise now expects an organic sales increase of more than 8 %. With this growth rate Symrise would again significantly outperform the market which is expected to grow between 3 to 4 %.

In addition to ongoing strong demand Symrise expects growth to be driven by the various investments in capacity expansions and the enhancement of innovation.

The Group expects the shortage of raw materials to persist in the remaining weeks of 2018. Symrise considers itself well positioned to compensate for the market shortages on the basis of its own backward integration. The Group will prevent non-delivery of supplies through access to its own sources of key raw materials. Nevertheless, Symrise expects the purchase costs for raw materials to remain on a higher level.

Symrise intends to remain one of the most profitable companies in the industry in 2018 with an EBITDA margin of around 20 %.

The medium-term targets through to the end of the 2020 fiscal year remain in full effect, including a compound annual growth rate (CAGR) in the 5 to 7 % range and an EBITDA margin between 19 and 22 %.
(Symrise AG)

Newsgrafik #34427
 23.11.2018

Making climate change financially measurable  (Company news)

Symrise one of 513 supporters around the globe of the climate change report
— Task Force demands more climate transparency in corporate reports

Symrise is one of the 513 companies all over the world that supports the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and is thus committed to protecting the global climate. The Task Force has dedicated itself to having companies disclose the financial impact of climate change on their companies in their annual reports. The committee has therefore developed recommendations for action. Symrise, a global manufacturer of fragrances and flavorings, advocates the goals of the initiative and already shares extensive climate data in its annual Corporate Report.

How can you make the impact of climate change on a company’s business activities more transparent? Having considered this question during the 2015 Paris Climate Agreement, the Financial Stability Board founded the TCFD. The criteria it developed were introduced for the first time on September 26, 2018, at the Bloomberg Global Business Forum and One Planet Summit in New York. The TCFD thanked Symrise, among other companies, for its commitment to protecting the global climate.

The idea behind the TCFD is to uncover the risks and opportunities of climate change and identify their impact on companies and financial markets. “It’s more important than ever that companies assume a leadership role. They need to gain a better understanding of risks and respond to them, as well as acknowledge the opportunities they provide. The goal is to develop a strong, resilient and sustainable global economy,” says Michael R. Bloomberg, founder of Bloomberg LP and Task Force Chairman. Their criteria regarding climate-related financial information comprise four topic areas. Companies share information about their governance, the effects on business activities and strategy, and opportunity and risk management, and they pursue their goals based on the key figures provided. The recommendations focus on the opportunities and risks resulting from the transition to a low-carbon economy. The TCFD also recommends explaining the potential effects of climate-related risks based on a variety of scenarios, such as global warming of 2°C.

In the 2018 status report presented, the Task Force assessed the reports of 1,800 companies, most of which already publish climate-related data that conforms with the TCFD recommendations. According to TCFD Chairman Bloomberg, the efforts thus far have paid off: “The more informed companies are about the risks they face, the faster and more effectively they can respond to them. We will gain more supporters and the global economy will become more resilient and invest more in projects designed to help reduce emissions and protect people from harm.”

About the Task Force on Climate-related Financial Disclosure (TCFD)
Founded by the Financial Stability Board (FSB), the TCFD Task Force develops voluntary, consistent climate-related financial risk disclosures for use by companies. This information can then be incorporated into companies’ annual reports and thus made available to creditors, insurance companies, investors and other interest groups. The first status report was presented at the Bloomberg Global Business Forum and One Planet Summit in New York on September 26, 2018.
(Symrise AG)

Newsgrafik #34418
 20.11.2018

Symrise invests Euro 50 million in new site for natural food ingredients in Georgia, USA  (Company news)

— Production facility emphasizes commitment to the US-American market
— Expansion of business with natural ingredients for the food industry
— Product innovations with an integrated, sustainable supply chain

The Symrise AG has opened a site for high-quality natural food ingredients in Banks County, near Atlanta, in the US state of Georgia, on October 30, 2018. The Group invests Euro 50 million in the facility. It follows high technological and sustainable standards. The step reinforces the pioneering role of Symrise on the US market and emphasizes its aspiration to further expand within growth regions.

“This advantageous location in the USA’s well-developed agricultural South-East enables us to strategically grow on the market for natural and sustainable food ingredients. With the new site in Georgia we show that we consistently implement our investment program. For example, only a couple of weeks ago, also in the USA, we have opened a plant for cosmetic ingredients in Charleston, South Carolina. The expansion of our capacities is and continues to be an important growth factor. We are strengthening our competitiveness for the traditionally largest market in our industry. In addition, we are strategically developing our backwards integration focusing on agriculturally produced raw materials. By working closely with our farmers, we are ensuring high product quality and deliverability”, says Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.

The plant will manufacture products for the business units Food Ingredients, Symrise Flavor and Pet Food. Symrise’s customers use these natural ingredients for example in culinary applications as well as in premium pet food. Symrise aims to continue its growth in the US market for natural food ingredients and wants to successively expand the site in Georgia until 2020.

Natural ingredients match consumers’ tastes all around the world

Natural and nutritionally valuable product solutions play worldwide an increasingly important role, as consumers pay more attention to a conscious diet. This applies to North American as well as global consumers and their desire for natural ingredients. Many food ingredient suppliers and farmers are located in Georgia. The state belongs to the dynamic growing economic regions in the country. Symrise therefore built the new plant for the production of natural food ingredients specifically in this environment on its 40-hectare site. The workforce currently comprises 50 employees and will be further increased to 100 employees with future expansion of the plant.

Numerous representatives from politics and business accepted the invitation of the CEO Dr. Heinz-Jürgen Bertram. Together with the Symrise management team the participants gave the starting signal for the successful launch of the production.

Focused on the future
Symrise has many decades of experience in the manufacturing of natural products from a sustainable supply chain. High standards of product safety and quality assurance have been achieved during this time. With this comprehensive expertise, the company also efficiently and sustainably shapes the product flows of the new plant. The plant meets the latest technical standards of production of natural food ingredients.
(Symrise AG)

Newsgrafik #34393
 16.11.2018

German Sustainability Award: Symrise reaches the finals   (Company news)

Holzminden-based company among the top three in contest for Germany’s Most Sustainable Large Corporation
• Jury recognizes comprehensive sustainability management and local investments

After receiving the award in 2012 and reaching the final round in 2016, global manufacturer of fragrances and flavorings Symrise has made it into the finals of the German Sustainability Award for the third time. As a pioneer in sustainability, the Group has developed high benchmarks in its industry, and these have been integrated into all decision-making and production processes. For years now, the company based in Holzminden has also been active in its growing regions across all continents and supported the local populations. Its comprehensive sustainability management has now been acknowledged in the final round of the category Germany’s Most Sustainable Large Corporation. The presentation ceremony will be held in Düsseldorf on December 7, 2018.

Symrise produces some 30,000 products from around 10,000 primarily natural raw materials. The company recognized early on that its business model requires the intact diversity of raw materials, while the demand for sustainably produced raw materials is on the rise. Pollution and extensive use of resources threaten the biodiversity in cultivation areas around the world, which is why Symrise utilizes its leading market position, is committed to sustainable protection of ecosystems and defines new standards along the way. The aim is to minimize the company’s environmental footprint while maximizing sustainability in terms of products and employees and along the supply chains.

Sustainability and Symrise – a success story
In this context, the jury is recognizing in particular the level of commitment along the supply chain as well as ongoing improvements in the company’s operations. For example, all suppliers are evaluated and selected based on strict internal and external standards. With the “green factory” concept, the Holzminden-based company places great value on climate-friendly construction methods when building new production sites, which includes using renewable energies and byproducts and promoting concepts such as upcycling.

The dedication of the Holzminden employees has long been successful and can also be expressed in numbers. Over the years, the company has significantly reduced its carbon emissions, hazardous waste and wastewater. More than 5,500 small-scale farming operations in the company’s cultivation areas have received training in sustainable cultivation methods. More than 33,000 small-scale farmers still benefit from these projects to this day, and Symrise’s commitment has demonstrably improved their socioeconomic conditions. Symrise also supports the future of small-scale farmers: Investments in teachers and the infrastructure of schools have improved the education situation for some 20,000 schoolchildren.

Symrise continues its commitment to sustainability
“Having reached the finalist round again is an outstanding confirmation of our sustainability-focused corporate philosophy,” says Hans Holger Gliewe, Chief Sustainability Officer at Symrise. “This success inspires us. We constantly pursue our sustainability goals, and we want to reduce our absolute carbon emissions by 18 percent by 2030, among other things,” adds Gliewe. Symrise would also like to guarantee one hundred percent traceability of its key raw materials as of 2020. As a result of the Paris Climate Agreement, Symrise is also involved in the Science Based Targets initiative. Participating companies want to limit global warming to a figure well below 2°C. Symrise is the first company in its industry to have had its climate strategy approved by the initiative committee.
(Symrise AG)

Newsgrafik #34124
 04.09.2018

Strong organic growth of 9.0 % in the first half of 2018   (Company news)

- Accelerated growth of 10.6 % in the second quarter
- Profitability at good level with an EBITDA margin of 20.1 %
- Outlook 2018: Annual sales increase above 7 %

Following a dynamic start to the year, Symrise AG accelerated its organic growth course in the second quarter. All segments and regions contributed to this positive development. Group sales rose significantly by 9.0 % in the first half of 2018. Taking into account portfolio and exchange rate effects, sales grew by 4.0 % to € 1,575.5 million (H1 2017: € 1,515.3 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 317.1 million (H1 2017: € 322.9 million). The EBITDA margin remained at a good level of 20.1 %. Against the background of this positive business performance, Symrise is refining its outlook for 2018: The Group now expects an increase in annual sales above the medium-term target corridor of 5 to 7 %, thereby growing significantly faster than the market.

“Symrise took advantage of the momentum in the second quarter and significantly expanded business in all segments. Our comprehensive backward integration is proving to be a great asset. Also with a shortage of certain key raw materials for fragrance compositions, we were able to supply our customers reliably,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “We are moving into the second half of the year from a strong position. Targeted investments in research and development, sales strength and capacity expansions are driving our growth. Therefore, we are raising our sales forecast for the current fiscal year: We expect organic growth above our medium-term target corridor of 5 to 7 % and will therefore significantly exceed market growth.”

High demand in all segments and regions
In the first six months, Symrise AG increased its organic sales by a strong 9.0 %. The second quarter was particularly dynamic with double-digit sales of 10.6 %. Symrise is therefore once again one of the fastest-growing companies in the industry. All segments and regions contributed to this positive business performance. Considering portfolio effects, such as the contribution from the recently acquired companies Cobell and Citratus, and exchange rate effects, sales grew by 4.0 % to € 1,575.5 million (H1 2017: € 1,515.3 million). As in the previous quarter, sales trend in reporting currency was impacted by unfavorable exchange rates, in particular by the appreciation of the euro against the US dollar.

As before, Latin America was the key growth driver at the regional level. During the reporting period, the region recorded organic sales growth of 16.1 %. In the second quarter, growth reached even 20.2 %. The Asia/Pacific region sales grew by 12.3 % in the first half of the year, followed by EAME and North America with growth rates of 7.4 % and 5.2 %, respectively. In Emerging Markets, Symrise increased sales by 12.8 %. These markets, which are characterized by dynamic growth, contributed 43 % to total sales.

Profitability remains strong within challenging environment
In the first half of 2018, Symrise generated earnings before interest, taxes, depreciation and amortization (EBITDA) of € 317.1 million (H1 2017: € 322.9 million). In addition to higher raw material costs and unfavorable exchange rate effects, this slight decline also reflects increased investments in strategic growth projects. With these expenses too, Symrise maintained a very good profitability. The EBITDA margin was with 20.1 % at a good level (H1 2017: 21.3 %). Net income for the period grew to € 142.3 million (H1 2017: € 141.8 million). Earnings per share rose slightly to € 1.10 (H1 2017: € 1.09).

Solid capital resources
Cash flow from operating activities for the first half of 2018 of € 151.3 million was € 23.7 million lower than in the previous year (€ 175.0 million). The reason for the decline is an increase in working capital due to the high growth dynamics and the associated increase in inventories alongside higher raw material costs.

Net debt amounted to € 1,514 million (31 December 2017: € 1,398 million). The ratio of net debt to EBITDA amounted to 2.4 (31 December 2017: 2.2). With an equity ratio of 37.0 %, Symrise has a solid capital base to continue driving the future business development forward in a sustained manner.

Scent & Care segment
In a challenging environment, the Scent & Care segment achieved strong organic growth of 10.1 % in the first half of the year. In this continuing tense situation of the raw material markets, especially with the supply of important aromatic substances, the segment sustained the dynamic development from the previous quarter and grew by 13.6 % between April and June. Taking into account negative exchange rate effects and the portfolio effect from the acquisition of Citratus, the segment increased sales by 3.4 % to € 660.1 million (H1 2017: € 638.2 million).

Growth was driven by the Cosmetic Ingredients and Aroma Molecules divisions. Each posted organic double-digit sales growth rates. The Fragrance business also developed positively and achieved a good single-digit growth rate.

The second quarter was also marked by failure to deliver raw materials of some suppliers and an overall rise in price level. Scent & Care again benefited from its comprehensive backward integration in fragrances – recently strengthened by the acquisition of Pinova in 2016 – and its mostly own broad raw material base. As in the previous quarter, Symrise was therefore fully capable of delivering to its clients. To compensate for the increased raw material costs, the company is in close dialogue with its customers to actively implement price increases.

Also in view of significantly higher raw material prices, which led to cost increases, the segment’s EBITDA of € 127.9 million was on prior-year level (H1 2017: € 128.4 million). Crucial when comparing with the reference period is that it included a one-off gain of € 4.7 million from the purchase price adjustment related to the sale of the Pinova industrial activities. The EBITDA margin of the segment was 19.4 % (H1 2017: 20.1 %). Adjusted for the one-off effect, the EBITDA margin for the same period in the prior year was 19.4 %.

Flavor segment
Flavor achieved strong organic sales growth of 10.9 % in the reporting period. All regions and application areas significantly expanded their sales. The segment also benefited from new business with vanilla and the high price level of vanilla applications. Considering exchange rate effects and the Cobell acquisition, the segment’s sales grew by 9.0 % to € 604.7 million (H1 2017: € 554.8 million).

In the EAME region, the Flavor segment achieved double-digit organic growth rates. Significant growth impetus came mainly from applications for Sweets and for Savory in Western Europe and Russia.
The Asia/Pacific region recorded high single-digit, and for some areas even double-digit, growth rates across all application areas. The markets of China, India, South Korea and Singapore developed particularly well.

Latin America also showed a very good development with organic growth rates in the upper single-digit range. Sweets and Savory performed especially well, achieving double-digit growth in Argentina, Brazil and Mexico.

The North America region achieved double-digit organic sales growth rates as well and therefore also showed a very positive development. The first half of the year was particularly dynamic in the Beverages application area.

EBITDA in the Flavor segment increased in the first half of 2018 by 3.3 % to € 127.0 million (H1 2017: € 123.0 million). At 21.0 %, the EBITDA margin remained at a very good level (H1 2017: 22.2 %).

Nutrition segment
Nutrition generated organic growth of 3.6 % in the first six months. This figure reflects the temporarily destocking of one major customer of Probi. Adjusted for this effect, growth in the segment amounted to 7.6 %. Taking into account negative exchange rate effects, sales amounted to € 310.6 million (H1 2017: € 322.2 million). Order intake at Probi is expected to normalize in the second half of the year.

The Food and Pet Food application areas each recorded solid single-digit organic growth rates, with particularly high growth rates in EAME, North and Latin America. Aqua benefited from numerous business wins in the EAME and Asia/Pacific regions and achieved a double-digit organic growth rate.

Nutrition generated an EBITDA of € 62.2 million in the first half of 2018 (H1 2017: € 71.6 million). The temporary decline mainly reflects the lower sales contribution from Probi and ramp-up costs for the new Diana site in the USA. With all these special effects, the EBITDA margin was at stable 20.0 % (H1 2017: 22.2 %).

Symrise raises outlook for sales growth in 2018
Based on the strong growth momentum of the first six months, Symrise is refining its sales guidance for the current fiscal year: For 2018, the Group expects to significantly exceed market growth, which is expected to range between 3 to 4 %. Symrise now expects sales growth of more than 7 %, and thus above the medium-term target corridor of 5 to 7 %.

In addition to good demand, the Group’s organic growth will accelerate primarily as a result of numerous investment projects to expand capacity. In August, for example, the capacity expansion for cosmetic ingredients will be successfully completed in South Carolina. Moreover, the new Diana Food Ingredients site in Georgia will start production in the fourth quarter.

Symrise also expects for the second half of the year that the continuing shortage of key raw materials for perfume compositions will not lead to any shortfalls in its supply. Nevertheless, as in the first half-year, higher purchase costs for raw materials are likely. Overall, the Company considers itself well positioned to compensate for market shortages on the basis of its own backward integration.
Symrise therefore intends to remain one of the most profitable companies in the industry in 2018 with an EBITDA margin of around 20 %.

The medium-term targets through to the end of the fiscal year 2020 remain in effect, including a compound annual growth rate (CAGR) in the 5–7 % range and an EBITDA margin between 19–22 %.
(Symrise AG)

Newsgrafik #34044
 03.08.2018

Symrise Nominated for the German Sustainability Award  (Company news)

— Third nomination following first place in 2012 and final round in 2016
— Jury honors systematic integration of forward-looking sustainability elements

Having already received the award in 2012 and made it into the final round in 2016, Symrise has been nominated again this year for the German Sustainability Award. The fragrance and flavoring manufacturer is active in local growing regions across multiple continents and distinguishes itself from its competitors most notably with its systematic environmental sustainability management and its sustainable product portfolio. Symrise integrates the challenges of sustainable development into its operational decision-making processes in order to achieve social, environmental and economic successes over the short, medium and long term.

The jury honored the sustainability management of Symrise with a nomination in the category “Germany’s Most Sustainable Large Corporation.” Symrise employs efficient processes and technologies to protect limited natural raw materials over the long term in order to protect biodiversity in the regions threatened by global change. Sustainability is a core element of the corporate strategy with
long-term goals: minimizing the environmental footprint and maximizing sustainability in terms of products, supply chains and employees. Symrise also engages within the growing regions and with the farmers by entering into long-term partnerships and investments in local infrastructure. Symrise pays special attention to ethical issues connected to its global material streams. In fact, the company evaluates suppliers based on ethical criteria and works with strategic suppliers to develop action plans, which in turn should increase the social and environmental effectiveness of the core business as well as the resilience of the extensive raw materials portfolio. Symrise is also looking to establish 100 % traceability for strategic raw materials by 2020.

Symrise has achieved significant, measurable success over the past years. With lighthouse projects in sustainable sourcing, Symrise has considerably increased the number of people involved in its projects. In Madagascar, the company has already trained more than 5,500 local small-scale farmers in sustainable cultivation methods and included them into the certification program. Symrise has also invested in schools and thus improved the educational situation for over 20,000 children. Symrise is also pursuing similar approaches in other growing regions, including Brazil’s Amazon rainforest.

The company wants to achieve more, for instance, in climate protection: It aims to reduce its absolute greenhouse gas emissions in relation to value added by five percent and lower the chemical oxygen demand in wastewater by four percent each year. Symrise is the first company in its sector to receive confirmation from the specialist jury of the Science Based Targets initiative (SBTi) for its long-term CO2 reduction goals. The SBTi’s goal is to implement voluntary reduction measures designed to reduce global warming to clearly below two degrees in line with the Paris Climate Agreement.
(Symrise AG)

Newsgrafik #33895
 30.05.2018

Naturally Delicious and Sustainable: Symrise Inspires Private Labels at PLMA   (Company news)

• Trendy samples for private label concepts
• Drink, feast and snack naturally
• Concepts for products with reduced sugar and salt, as well as sustainable packaging

At the “World of Private Label” (PLMA) international trade show, Symrise shows its natural offerings for the private label business. Large, medium and small retailers’ brands are riding this trend, and clearly benefit from it. On May 29 and 30, 2018, Symrise introduces its offerings around its code of nature® platform. Guests discover how concepts such as naturally delicious, environmentally friendly packaging and reduced sugar and salt work in and for food. At booth F-8105 in Hall 8 at the RAI Exhibition Centre in Amsterdam, visitors may try hip beverages, snacks and fresh concepts for the BBQ season, all while learning more about the raw materials used.

PLMA makes it clear: Consumers today want their food to be produced as naturally and sustainably as possible. Symrise understands this desire, and it has made naturalness for taste in food one of its core competencies, resulting in the development of its strategic platform code of nature®. This builds on four pillars: transparency, best natural, technology, and consumer value. “At PLMA in Amsterdam, we are showing how we develop sustainable and natural products for the private label industry. This plays a decisive role for all, the consumer, the economy and the environment as well,” says Dr. Alexander Lichter, Vice President Sales, Flavor Division EAME.

PLMA Concept Presents code of nature® for More Naturalness and Sustainability
At booth F-8105 in Hall 8, Symrise entices visitors with an assortment of unique drinks and snacks to taste test, like craft cola, alcohol-free beer, yogurt salad dressing and “homemade” potato crisps. With the help of its code of nature®, the company demonstrates how it is mindful of naturalness and sustainability along the entire value chain – from cultivation to the end consumer. Only the manufacturers who offer their customers the most natural products possible can be long-term leaders in their field.

Thanks to its four-pillar strategy, code of nature® individually meets customer and consumer demands. Fully transparent, the consumer can tell at first glance whether a product is made from responsibly sourced materials. With its carefully selected range of raw materials, Symrise delivers products with pure, natural ingredients. The company also ensures that, thanks to modern technology, its raw materials are processed as sustainably as possible. And, lastly, Symrise is committed to environmentally friendly packaging, such as glass bottles, and makes it possible to provide easily understood labeling of ingredients in order to win and maintain the trust of consumers.
(Symrise AG)

Newsgrafik #33807
 18.05.2018

Climate Goals: Symrise Among Globally First 100 SBT-Certified Companies  (Company news)

• Symrise is one of three German companies to meet the ambitious targets of the Science Based Targets initiative
• Global fragrance and flavor company exceeds its own climate protection goalsActive contribution to meeting the United Nations’ Sustainable Development Goals

The number of companies with scientifically recognized climate targets exceeded 100 for the first time in April 2018. The global Science Based Targets initiative (SBT) certifies the climate targets of interested market participants according to whether they are in line with current research and are working to reduce CO2 emissions on par with the standards of the Paris Climate Agreement. Symrise, the globally active manufacturer of fragrances and flavorings, is one of twelve German companies that have participated so far. The Holzminden-based company is ahead of its own schedule when it comes to implementation.

In order to have their scientifically based climate targets recognized, the companies submit their plans to the Science Based Targets initiative, whose experts examine them in detail. So far, 389 large companies have undergone this test, including many world-renowned brands. In April 2018, the SBT confirmed the 100th of these plans. Companies from 23 countries are now pursuing science-based climate protection targets.

To be approved, interested parties must show that their goals correspond to the current state of research. They must also realize the minimum savings necessary (relative to their sector and size) to meet the global objectives of the Paris Agreement. The initiative is supported by the WWF, the UN Global Compact, the Carbon Disclosure Project and the World Resource Institute – an organization that has been dedicated to environmental protection and resource conservation for more than 30 years.

Symrise Exceeds Its Own Goals
Fifty-seven of the 103 companies verified so far are from Europe. Only a few German companies can be found on this list. Just twelve companies from Germany have submitted their plans to the initiative and only three of them have received confirmation that their goals meet the SBT’s strict requirements. Symrise AG’s goals were approved in July 2017 as the 61st company worldwide.

Symrise plans to reduce its own CO2 emissions by 18 percent by 2030. The calculation is based on the values from 2016. The obligation includes Scopes 1 and 2, i.e., the CO2 emissions generated within the company for energy production, as well as those resulting from the purchase of electricity. In addition, the company from Lower Saxony has pledged to ensuring that 80 percent of its suppliers commit to their own climate protection targets by 2020.

To achieve the targeted CO2 reduction, Symrise must reduce annual emissions by 5 percent in terms of value added. A much larger step was taken in 2017 – the company’s sustainability report shows a decrease of 7.8 percent. The next interim goal is to halve CO2 emissions in relation to value added by 2030, based on the figures from 2016.
(Symrise AG)

Newsgrafik #33837
 11.05.2018

Symrise achieves strong organic growth of 7.5 % in the first quarter  (Company news)

— Group sales up by 1.5 % to € 776.9 million, including portfolio and exchange rate effects
— EBITDA margin with 20.1 % in target corridor
— Shortage of some raw materials has no impact on delivery capability
— Guidance for 2018 and medium-term targets through to 2020 affirmed

Symrise AG remains on track for strong growth in the fiscal year 2018 and achieved a very healthy 7.5 % organic increase in sales in the first quarter. All segments benefited from good demand. Taking into account portfolio and exchange rate effects, sales in the first quarter were up 1.5 % to € 776.9 million (Q1 2017: € 765.2 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 155.8 million. Due to negative currency effects and higher raw material costs, it came in lower than in the prior-year period (Q1 2017: € 165.5 million). The EBITDA margin reached 20.1 % and was within the medium-term target corridor of 19–22 %.

"We have made a dynamic start in the fiscal year 2018 and consider ourselves very well positioned due to our strong market position. Despite extensive investments, volatile exchange rates and higher raw material prices, we operated very profitable," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. "The targeted expansion of our product portfolio and our raw material base has paid off. Along with strong demand from our customers, this was the foundation of our success in the first quarter. All segments generated substantial new business and contributed to the growth of our Group. We are looking ahead with confidence to our business performance in the coming months. We will remain focused on profitable growth, especially through our continuing push to expand our capacity."

Strong organic sales growth
The Symrise Group achieved strong organic sales growth of 7.5 % in the first quarter. All segments experienced healthy demand. Considering portfolio effects – such as the sales contributions of the recently acquired companies Cobell and Citratus – and exchange rate effects, Symrise increased its sales by 1.5 % to € 776.9 million (Q1 2017: € 765.2 million). The sales trend in reporting currency was negatively impacted by unfavorable exchange rates, in particular by the appreciation of the euro against the US dollar.

Profitability within target corridor
First-quarter earnings were impacted by negative currency effects and higher raw material costs. Earnings before interest, taxes, depreciation and amortization (EBITDA), at € 155.8 million, were € 9.7 million lower than in the same quarter a year earlier (Q1 2017: € 165.5 million). It is important to consider that the Q1 2017 figure includes a one-off gain of € 4.7 million resulting from the sale of the Pinova industrial activities.

The situation in the raw material markets, especially the supply of important fragrance ingredients, remained challenging in the first quarter. The failure to deliver raw materials of some suppliers and a generally higher price level led to cost increases. The Scent & Care segment again benefited from its comprehensive backward integration, retaining full delivery capability due to Symrise’s wide-ranging raw material base. To compensate for the higher raw material costs, Symrise engages in a close dialog with its customers to actively implement price increases.

The Group's EBITDA margin reached 20.1 % (Q1 2017: 21.6 %) and was, despite the cost increases that were mainly attributable to external factors, on the expected level of about 20 % for 2018. It was also within the target corridor for both the current year as well as the medium-term targets for 2020.

Scent & Care with good sales growth in particular for fragrances and cosmetic ingredients
Scent & Care posted a 6.9 % organic sales increase in the first quarter. Considering the negative currency effects and the portfolio effect from the Citratus acquisition, sales in reporting currency amounted to € 331.8 million, and thus were slightly lower than year-on-year.

The Aroma Molecules division delivered the strongest growth, with organic double-digit percentage increases, in particular in applications for fragrance ingredients.

The Cosmetic Ingredients division achieved strong organic growth in the high single-digit percentage range, showing particularly expansive developments in the Asia/Pacific and Latin America regions.

The Fragrance division reported a moderate organic increase in sales, especially driven by the Beauty Care and Home Care business units. Beauty Care, which develops and markets body and facial care applications, realized strong organic growth especially in the Asia/Pacific and Latin America regions. In the Home Care business unit, healthy increases were seen in the Asia/Pacific, EAME and Latin America regions, mainly through new business with regional customers. The Fine Fragrances business unit achieved a double-digit growth rate in Latin America as a result of higher demand from regional and local customers.

The EBITDA for the Scent & Care segment in the first quarter amounted to € 64.8 million (Q1 2017: € 71.9 million). The year-on-year decrease reflects negative currency effects, higher prices for raw materials and the one-off gain from the sale of the Pinova industrial activities. The EBITDA margin was 19.5 % (Q1 2017: 21.6 %).

Double-digit sales growth in the Flavor segment
Sales in the Flavor segment, which encompasses the business activities with flavors for foods and beverages, grew organically in the first quarter at a very dynamic rate of 11.0 %. All business units and regions showed significant increases in sales. Taking into account exchange rate effects and the Cobell acquisition, sales in this segment were up 7.8 % in reporting currency in the first quarter to € 291.2 million (Q1 2017: € 270.2 million).

In the EAME region, applications for sweet and savory products delivered the biggest organic increases, above all in the national markets of Germany, France, Russia and Egypt. The Beverages business unit benefited from the Cobell acquisition.

The Asia/Pacific region achieved in all business units high single-digit or even double-digit percentage growth rates, with particularly satisfactory results especially in China, Japan and Singapore.

The North America region also saw significant year-on-year gains in sales. The Beverages application area showed a particularly dynamic trend resulting from extensive new business.

The overall trend in the Latin America region was positive, with an organic growth rate in the medium single-digit percentage range. The biggest impetus came from the Sweet business unit, with good demand in the markets of Brazil and Mexico.

In the Flavor segment, EBITDA increased to € 61.0 million. This result was € 4.1 million higher than in the same period a year earlier (Q1 2017: € 56.9 million) despite unfavorable exchange rates, and represents an increase of 7.2 %. The EBITDA margin, at 20.9 %, was down slightly (Q1 2017: 21.1 %), mainly as a result of the Cobell acquisition.

Nutrition with strong demand for food and pet food applications
The Nutrition segment, which includes the Diana division, with food, pet food and baby food applications as well as probiotics, achieved organic growth of 2.9 % in the first quarter. This reflects above all an announced reduction in orders from a relevant probiotics customer. Adjusted for the business unit Probi, the growth rate was 8.0 %. In consideration of unfavorable exchange rates, sales in reporting currency, at € 153.8 million, were lower than in the same period in 2017 (Q1 2017: € 161.8 million).

The Food, Pet Food and Aqua business units achieved growth rates in the high single-digit range. In the Food business unit, the strongest growth was seen in the North America and Asia/Pacific regions. Pet food applications experienced the highest increases in Latin America and North America, especially in Mexico, Argentina and the USA.

EBITDA in the Nutrition segment amounted to € 30.1 million in the period under review. Due to negative currency effects, the loss of contributions to earnings through the lower sales in the Probiotics business unit, and start-up costs for the new plant in Georgia, USA, EDITDA was lower than in the first quarter of 2017 (Q1 2017: € 36.7 million). As expected, the EBITDA margin was 19.5 % (Q1 2017: 22.7 %).

Guidance affirmed
After a good start to the year, Symrise affirms its growth and profitability targets for the current fiscal year. The Group remains confident that it will continue to achieve growth on a sustainable basis. The target remains, again in 2018, to significantly exceed the market growth rate, which estimates indicate will lie between 3 % and 4 %. Healthy demand from customers and numerous investment projects to increase capacity, especially in the USA, will continue to push the Group's organic growth. In mid-2018 the capacity expansion for cosmetic ingredients in South Carolina will be completed, and the new Diana site for food ingredients in Georgia will be opened in the second half of the year.

Symrise aims to be highly profitable yet again in 2018 and to achieve an EBITDA margin of approximately 20 %. The medium-term targets through to the end of the fiscal year 2020 remain in effect, including a compound annual growth rate (CAGR) in the 5–7% range and an EBITDA margin between 19–22 %.
(Symrise AG)

Newsgrafik #33760
 03.05.2018

Symrise Inaugurates Creative Center in Shanghai and Celebrates Completion of Construction Phase ...  (Company news)

... in Nantong

• Grand opening of creative center in Pudong, Shanghai
• Ceremony for completion of first construction phase of new production facility in Nantong
• Investments continue to grow in China as one of the key markets

On April 11, 2018, Symrise inaugurated its new creative center in Pudong, Shanghai. The production facility in Nantong will also be celebrating the completion of the first construction phase. China is one of the key sales markets for the fragrance and flavoring manufacturer. Symrise has been active in the Chinese market for 36 years. The company intends to continue on its course of growth with these investments.

Photo: Topping off production facilities

“With our new Creative Center in Shanghai, we have created a cutting-edge environment for our fragrance creation. It should be a clear sign to both our Chinese customers and our employees there of our intention and commitment to further drive forward our growth in China,” says Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. The new creative center in Shanghai is an investment about € 8 Mio. Here, experienced perfumers will develop almost 9,000 different fragrances for the Chinese market every year. A generous amount of space and specially furnished rooms will offer plenty of space for creation and market research. They will include a fragrance creation and compounding area with doubled working space, an application laboratory for customer samples, hair and home care test rooms as well as consumer insights facilities. Short passages between the various areas include efficiency aspects into the building’s design.

China: a Key Market for 36 Years
Symrise started its business activities in China back in 1982 as one of the first joint ventures ever in Shanghai. This milestone in the company’s history made Symrise the first international supplier of fragrances on the Chinese mainland. “Our bold and forward-looking decision to go to China at that time has paid off. Today, we generate about a quarter of our sales in the Asia-Pacific region, where China plays an important role. We want to strengthen our position there in the long term,” said Bertram.

Additional Production Site in China
Symrise is therefore investing 50 Mio. € (phase I, planned total investment 83 Mio. €) in a new production facility for fragrances and flavors in Nantong. With over 7.3 million inhabitants, the city is key member of Shanghai One-hour economic circle. The high-speed train connection to Shanghai and metro (under construction) will make the location even more attractive in the future.

Moreover, Nantong is to receive a green lung and incorporate many aspects of sustainability into its infrastructure. Symrise intends to follow this approach and promote sustainable technologies which will lead to an environmental friendly footprint throughout the premises. The around 5 hectare plot of land will allow Symrise to further exploit the growth opportunities and expand the capacities in the in the coming years. The new operation is the second production site in China, which is becoming the world’s largest flavor and fragrance market.
(Symrise AG)

Newsgrafik #33757
 01.05.2018

Symrise Retains its Leading Position in the Ethibel Sustainability Index Europe   (Company news)

• Company’s sustainability performance confirmed once again
• Independent rating agency assesses commitment to environment and society

The Ethibel Sustainability Index (ESI) Europe has reaffirmed Symrise as a sustainable company. The fragrance and flavoring manufacturer from Holzminden impressed the international sustainability experts of the Belgian nonprofit organization “Forum Ethibel” once again with its commitment. The index includes 200 companies from throughout Europe.

Symrise racked up points in all four reviewed categories. These include internal social policy, environmental policy, external social policy and ethical-economical policy. The index uses data from Vigeo Eiris, a leading European sustainability rating agency, which evaluates companies, countries and public institutes according to a catalog of criteria. The index is reviewed twice a year based on this data and adjusted as needed.

Environmental Protection Along the Value Chain
“The inclusion of Symrise in the ESI Europe once again is an important confirmation for us that we are on the right path with our corporate sustainability management,” says Hans Holger Gliewe, Chief Sustainability Officer at Symrise. “The aim of sustainable corporate development is an integral part of the Symrise corporate strategy. We work hard on this every day. It is our express goal to continue to be one of the most successful and sustainable manufacturers of fragrances and flavorings in the world.”

How Symrise drives sustainable activity successfully is detailed in the recently published Corporate Report “Unfolding Strengths.” By last year, the company had already reached its objective of reducing its carbon emissions in relation to value added from 2010 to 2020 by one third. Symrise has also achieved palpable success once again in other key figures, such as the reduction of sensitive waste and increased resource efficiency.
(Symrise AG)

Newsgrafik #33669
 09.04.2018

Symrise fulfills 2017 targets and dynamically starts into current fiscal year  (Company news)

— Sales up by 3.2 % to € 2,996.3 million – adjusted for portfolio and currency effects organic growth of 6.3 %
— EBITDA increase to € 630.3 million
— EBITDA margin at a very healthy 21.0 %
— Net income up 2 % to € 270.3 million
— Dividend increase to € 0.88 per share proposed

Symrise AG achieved profitable growth in the fiscal year 2017 and reached all of its targets. The Group increased sales by 3.2 % to € 2,996.3 million (2016: € 2,903.2 million). Excluding portfolio and currency effects, organic sales growth even amounted to 6.3 %. Symrise profited especially from the dynamic performance of the Flavor and Nutrition segments and strong demand in the EAME and Latin America regions. Despite currency effects and investments into the expansion of capacities, the Group raised its EBITDA by 1 % to € 630.3 million (2016 normalized: € 625.2 million). With an EBITDA margin of 21.0 %, Symrise exceeded its 20.0 % target and was once again one of the most profitable companies in the industry (2016 normalized: 21.5 %).

"2017 was yet again a successful year for Symrise. For the twelfth year in a row we achieved very satisfactory increases in sales and earnings, especially in terms of organic growth. Despite further investments into our expansion, volatile exchange rates and rising raw material prices over the course of the year, we operated yet again highly profitable. To allow our shareholders to participate in this success, the Executive Board and Supervisory Board will therefore propose a dividend of € 0.88 at the Annual General Meeting," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. "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."

Dynamic organic growth in sales
Symrise increased its sales to € 2,996.3 million (2016: € 2,903.2 million) and benefited from strong organic growth of 6.3 %. Taking portfolio effects into account – in particular the sale of the industrial activities of Pinova in December 2016 and the acquisitions of Nutraceutix, Nutra Canada and Cobell – as well as exchange rate effects, sales grew by 3.2 %.

Strong demand especially in Latin America and EAME
The largest sales growth was realized in Latin America, where sales were up by a substantial 7.6 %. Sales in North America showed a 4.1 % year-on-year decrease due to the divestment of Pinova's industrial activities in December 2016. The Asia/Pacific region achieved a modest increase of 1.4 %. With a strong 7.4 % rise in sales, the EAME region showed an even more dynamic development than in the previous year.

The share of Emerging Markets in the Group's total sales was slightly higher, at 44 % (2016: 43 %). Symrise achieved an overall 7.6 % increase in sales at local currency in those countries.

High profitability maintained
Despite unfavorable currency effects, higher costs for raw materials and investments in expansion, Symrise was able to increase its EBITDA to € 630.3 million (2016 normalized: € 625.2 million). At the same time, the Group was highly profitable, with a very good EBITDA margin of 21.0 % (2016 normalized: 21.5 %).

Net income of the Group increased 1.8 % to € 270.3 million (2016 normalized: € 265.5 million). Earnings per share improved to € 2.08 (2016 normalized: € 2.05). The Executive Board and Supervisory Board will therefore propose an increase in the dividend from € 0.85 to € 0.88 per share at the Annual General Meeting on 16 May 2018.

Increase in operating cash flow
The Group grew its operating cash flow by approximately 17 % to € 396.2 million (2016: € 338.8 million), mainly as a result of higher earnings and a lower increase in working capital.

At the reporting date, net debt including provisions for pensions and similar obligations was € 49.2 million lower, at € 1,921.6 million (2016: € 1,970.8 million). The ratio of net debt, including provisions for pensions and similar obligations, to EBITDA stood at 3.0 (31 December 2016: 3.1). Due to the realized acquisitions, the value is temporarily above Symrise’s target corridor of 2.0 to 2.5.

The equity ratio increased from 36.4 % at the end of 2016 to 37.8 % at 31 December 2017. Therefore, Symrise has a solid capital base to continue advancing the Group's future sustainable development.

Scent & Care segment
The Scent & Care segment achieved total sales of € 1,263.1 million (2016: € 1,311.3 million). This yearon-year decrease of 3.7 % resulted from the sale of the industrial activities of Pinova in December 2016 and a slower first half of the year. Adjusted for portfolio and exchange rate effects, the segment reported healthy organic growth of 3.9 % – buoyed in particular by the strong fourth quarter, with an increase of 5.8 %. The strongest growth was posted by the Cosmetic Ingredients division. Strong demand was seen especially in the Asia/Pacific and EAME regions.

EBITDA in the Scent & Care segment amounted to € 248.1 million (2016 normalized: € 257.8 million). The 3.8 % decrease reflects higher raw material costs, the sale of the Pinova industrial activities and expenses for research and development. The EBITDA margin remained stable at 19.6 % (2016 normalized: 19.7 %).

Flavor segment
Sales in the Flavor segment increased to € 1,101.9 million in the year under review (2016: € 1,015.9 million). The segment achieved very strong growth of 8.5 %. Excluding the portfolio effect from the acquisition of Cobell and currency effects, organic growth amounted to a very healthy 9.3 %.

All regions and application areas contributed to the positive sales development. The segment continued the successful trend of recent years, particularly in Europe, Africa and the Middle East (EAME) as well as in North America. Growth was particularly strong in the Sweets and Beverages application areas as a result of new business with vanilla flavorings.

EBITDA in the Flavor segment amounted to € 242.9 million (2016: € 233.8 million). This represents a 3.9 % increase as compared with 2016. The EBITDA margin was a very satisfactory 22.0 % (2016: 23.0 %).

Nutrition segment
Nutrition posted a substantial 9.6 % year-on-year plus in sales to € 631.3 million (2016: € 576.0 million). Adjusted for portfolio and currency effects, organic sales growth in the segment amounted to 6.5 %.

The pet food application area was again one of the strongest growth drivers, with at least single-digit and sometimes even double-digit sales growth in local currency in all four regions.

The segment increased its EBITDA by 4.3 % to € 139.4 million (2016: € 133.7 million). The EBITDA margin was at an outstanding 22.1 % (2016: 23.2 %).

Confident outlook for 2018
After a dynamic start in the first quarter, Symrise is confident for the further development in the fiscal year 2018. The Group is expecting a healthy global economic growth. However, the debt situation of some countries will continue and some currencies will remain volatile. Moreover, Symrise expects overall raw material costs to increase significantly. The Group has been actively pursuing backward integration in key natural raw materials for years. As a result, Symrise is in a good position through close cooperation with producers and long-term contracts.

For the current fiscal year, Symrise remains committed to its target of growing faster than the relevant market at Group and segment levels. Estimates place worldwide market growth in the 3–4 % range. Moreover, despite the currently tense raw material situation, Symrise intends to maintain its strong profitability, and is therefore targeting an EBITDA margin of around 20 %.

Symrise is also reaffirming its objectives set for the end of the fiscal year 2020: a compound annual growth rate (CAGR) of 5–7 % and an EBITDA margin in the range of 19–22 %.
(Symrise AG)

Newsgrafik #33657
 04.04.2018

Symrise AG: Executive Board contract of CFO Olaf Klinger extended ahead of schedule  (Company news)

Picture: Olaf Klinger

— Supervisory Board reaffirms Olaf Klinger as CFO until January 2024
— Recognition of successful work in finance department
— Symrise relies on commitment to continuity and stability combined with further growth

The Supervisory Board of Symrise AG approved an early contract extension for CFO Olaf Klinger at its meeting on March 7, 2018. With his profound knowledge and extensive experience in the field, Olaf Klinger will continue to manage the finances of Symrise for another five years until January 2024. Through the renewal of the CFO's contract, Symrise is ensuring continuity and stability in the Executive Board.

The Chairman of the Supervisory Board, Dr. Thomas Rabe, said: "We are delighted to have Olaf Klinger on board to lead the financial department for another five years. By extending his contract now, we are demonstrating our long-term orientation, and we are also showing our recognition for his strong past
performance. Olaf Klinger did an outstanding job in addressing the increasing challenges of the international capital markets and enjoys an excellent reputation within our financial community."

As a member of the Executive Board, Olaf Klinger (52) has been heading Symrise’s finance department since January 2016. Since his appointment, he has successfully supported the Company in numerous strategic growth initiatives. He provided for instance a diverse range of financing instruments for the sale of the Pinova industrial activities in November 2016 and the acquisition of the British beverage specialist Cobell in May 2017. Symrise also benefited from his extensive knowledge of transactions and integration processes. In addition, Olaf Klinger utilized the positive market environment to carry out the successful placement of €400 million in convertible bonds in June 2017.
(Symrise AG)

Newsgrafik #33710
 23.03.2018

Symrise Demonstrates Taste Solutions for the Regional Market at Nigeria agrofood  (Company news)

• The company exhibits at the Nigeria agrofood trade show
• Products for customers in West Africa

Symrise is boosting its operations in the West African market. The global supplier of fragrances and flavorings will present its products at agrofood Nigeria with its own booth at the Landmark Centre – Hall 1 1C.1.10. The trade show, which will be held in Lagos from March 27 to 29, 2018, addresses the entire value chain, from farm to table. Additional trade show topics include the food processing and flavor industries.

At the largest food trade show in West Africa, Symrise will be offering visitors to its booth a wide range of concepts for beverages, sweets and other foods that have been developed to fit the region’s specific preferences. For example, guests will have the opportunity to learn more about palm wine, cherry mints, beef and chicken bouillon cubes, and mango-baobab juice. These products highlight the local expertise of the Holzminden based company, its strong connection to the West African market and its in-depth knowledge of consumer wishes.

There are plenty of reasons for Symrise to exhibit at agrofood Nigeria. “We’ve been active here for a long time and want to strengthen our local presence,” says Dr. Alexander Lichter, Vice President Sales Flavor Division EAME at Symrise. “We want to demonstrate our expertise to our customers in Nigeria and West Africa: creating natural and authentic flavor experiences for the people who live here using state-of-the-art technology.” With a population of nearly 190 million, Nigeria is one of the most important markets in the region, Lichter explains. The country has shown very promising development, both demographically and economically. Symrise has been active throughout the country for more than 30 years.

Naturalness and Authenticity for Customers in West Africa
Symrise has registered rising demand for natural, regional and authentic foods – among its customers as well as consumers. “That’s why we’ve dedicated ourselves to fulfilling these wishes,” says Dr. Alexander Lichter, Vice President Sales Flavor Division EAME. “Our company does this by perfecting how it processes raw materials, which are sourced in line with high ethical standards and the principle of sustainability. That’s why the Group can deliver products with an extraordinarily authentic flavor that contributes to well-being.”

In addition to its solutions for authentic flavor experiences, Symrise also offers natural food colorings. This is produced by Symrise’s Diana Food division, a specialist in functional food ingredients.
(Symrise AG)

Newsgrafik #33518
 01.02.2018

Award: Symrise Makes Excellent Contribution to Environmental Protection Worldwide  (Company news)

- CDP praises sustainability efforts of Symrise AG in the areas of water resources and climate protection
- Managing climate and environmental risks along the supply chain increasingly important

Its strategies to overcome ecological sustainability challenges have made Symrise AG one of the global market leaders. The renowned nonprofit organization Carbon Disclosure Project (CDP) has ranked the Holzminden-based company among the top two percent of outstanding A-list suppliers. The supplier of fragrances and flavorings was particularly lauded for the categories climate and water.

Symrise is paving a path for other companies to an energy and resource-efficient future. “Their executives are always one step ahead in seizing opportunities for environmental protection that arise,” said Paul Simpson, Chairman of the nonprofit global disclosure platform CDP, about the A-list ranking of the fragrance and flavoring manufacturer. CDP analyses how companies and governments reduce greenhouse gas emissions, use water responsibly and protect forests. The companies are divided into four different categories based on these results, from A – the highest – to D. Symrise earned an A rating for both climate protection and water protection for their activities in cooperation with their primary suppliers.

Environmental responsibility along the entire supply chain
Symrise AG was also mentioned for its responsible handling along the entire supply chain in the supply chain report. A total of 100 companies achieved an A rating in the recently published “CDP Global Supply Chain Report 2018.” This CDP ranking is based on an analysis by the business consulting firm McKinsey & Company. A total of 4,800 companies around the world provided their environmental data in this recent disclosure to the supply chain report. McKinsey’s analysis found that environmental risks are increasingly important for companies; 76 percent of suppliers surveyed identified risks for their business that are caused by climate change. 52 percent reported that they have already integrated global warming as a factor into their business strategy.

“Climate and environmental protection have the highest priority for us as a global company, especially in our sourcing processes and supplier relationships,” says Hans Holger Gliewe, Chief Sustainability Officer at Symrise. “This is evident, for example, in the nomination of our sustainable sourcing of vanilla for the Supply Chain Management Award or our dedication to sustainable cultivation of the Amazon.” These renewed accolades from the CDP make it clear that Symrise is already on a good path and bolster its plans to pursue this further.
(Symrise AG)

Newsgrafik #33261
 13.11.2017

Climate, Water and Forests: Symrise Again Among Global Leaders in CDP Ranking  (Company news)

- Leadership Rating in all CDP programs
- “Sustainable management is the key to success”
- Symrise AG among the world’s 25 leading CDP reporting companies

Symrise AG is one of the world’s leading companies in sustainability management. The renowned non-profit organization CDP has rated the Holzminden-based company as a global leader in the categories of climate, water and forests. The fragrance and flavor supplier is therefore among the top 25 sustainable companies worldwide.

The Carbon Disclosure Project (or CDP) assesses how companies and governments reduce greenhouse gas emissions, use water responsibly and promote the protection of forests internationally with their own activities and along their supply chains. The CDP scores these results in four grades, with “A” being the highest and “D” the lowest. With the awarded “A grade”, Symrise received the highest rating for both its climate and water protection activities. The Group was awarded an “A-” for its responsible approach to forest conservation and thereby secured a leadership position in this category as well.

Responsibility toward Nature and Society
“Protecting our biosphere and preserving functioning ecosystems is a priority for Symrise. We are always looking to shape our business operations in a sustainable manner and constantly improve our performance. CDP is an important driving force and guide for us along this path,” says Hans Holger Gliewe, Chief Sustainability Officer at Symrise. “For a globally active processor of natural raw materials,
the effective commitment to protecting our climate, water and forests is both a question of corporate social responsibility and a key strategic pillar for the successful economic development of Symrise. The CDP ratings clearly show that we at Symrise are on the right track with our sustainability program. They are an incentive for us to continue on this path in the long term,” adds Gliewe.

In 2017, more than 6,300 companies accounting for 55 percent of the world’s market capitalization provided CDP with their environmental data. In addition, more than 100 countries and regions as well as 500 cities made this information available to the organization. This makes CDP one of the most important sources of information when it comes to how companies and governments are strategically and operationally responding to global environmental change.
(Symrise AG)

Newsgrafik #33246
 27.10.2017

Symrise presents Oriental-influenced taste concepts at the Arabian Gulf  (Company news)

— Participation in Gulfood Manufacturing – leading trade show for food and beverages in the Arab region
Symrise travels to Dubai with taste inspirations for the Middle East and North Africa
— Natural raw materials from the region as a foundation for authentic food and beverage concepts

Symrise will present taste solutions for the cuisine of the Middle East and North Africa with a focus on natural raw materials from the region at Gulfood Manufacturing. From October 31 through November 2, 2017, the company will be presenting at the trade show in Dubai. The event is the centerpiece of the culinary world in the Middle East and 1,600 companies from food processing and adjacent industries are expected to attend. Symrise will be greeting its visitors at stand S3-B6 in Sheik Saeed Hall 3.

“The conscious use of regional taste tonalities in foods and beverages is a mark of quality that has a strong influence in the Middle East and North Africa. And just as in Europe, special attention to natural ingredients, specifically those sourced in the Middle East, is growing,” explained Alexander Lichter, Vice President Sales Flavor EAME at Symrise. “With our know-how, we extract the best of nature and create flavor concepts for customers in the Middle East, all the while supporting the growing trend for naturalness.”

Symrise obtains sustainably produced raw materials – for example vanilla extracts and cinnamon oils from Madagascar – through partnerships with agricultural producer communities around the world. With modern science, the globally operating company from Holzminden in Germany obtains high-quality flavor and functional ingredients from these raw materials. “With our extensive knowledge of the diverse aspects of taste and consumer wishes in various regions of the world, we develop tasty product concepts that are customized for each individual market,” said Lichter. “Our goal is to develop the best for the customer from the best of nature and science.”

At Gulfood Manufacturing, Symrise will present flavor concepts for cakes, snacks, dairy products and beverages. Among them are organic fruit nectars, reduced-sugar colas, spices for vegetarian burgers and a shisha-inspired chewing gum with citric and malic acids.

Gulfood Manufacturing will take place at the Dubai World Trade Centre in the United Arab Emirates and is the largest event in the region for the food processing industry. Symrise will be presenting at stand S3-B6 in Sheik Saeed Hall 3.
(Symrise AG)

Newsgrafik #33056
 21.09.2017

Symrise Again Certified as a “Green Company”  (Company news)

- Symrise fulfills all requirements for “Green Company” seal
- Effective management to reduce environmental risks recognized in particular
- Environmental performance up since first certification in 2013

DQS CFS GmbH, the German Association for Sustainability, has again certified Symrise as a “Green Company.” In explaining its decision, the association stated that the fragrance and flavoring manufacturer satisfied the international requirements of the Global Conformance Program to the utmost. Symrise is therefore allowed to use the “Green Company” label over the next three years.

DQS recognizes companies that actively and demonstrably minimize the negative effects of their economic activities on the environment as “Green Companies.” The audit focuses on the companies’ management systems, which are used to promote greater environmental friendliness in individual business units and reduce potential environmental risks. At Symrise, the audit involved the research and
development unit as well as production and distribution of all of the company’s ingredients.

Environmental Protection Along the Value Chain
Symrise has been focusing its business strategy on sustainability for several years and has set itself high environmental standards. “We are delighted that the independent auditors at DQS have once again recognized this commitment,” said Hans Holger Gliewe, CSO of Symrise. The company is constantly pursuing environmental protection and resource conservation along the entire value chain to reduce negative environmental impacts. Cost reduction and increasing efficiency are closely linked to environmental management at Symrise, noted Gliewe. “The acknowledgment of our improved environmental performance since the last audit is additional encouragement to continue on the path we have taken.”

Greater Consumer Safety with the Seal of Quality
DQS awarded the “Green Company” label to Symrise for the first time in 2013 as it already met the international requirements of the Global Conformance Program back then. DQS CFS GmbH now handles all certification services related to sustainability and consumer safety within the international DQS Group. This year, it assumed certification duties. The comprehensive assessment spectrum, which
involves around 50 standards and legal requirements, covers all the essential sustainability and safety requirements that are currently applied along the entire value chain.
(Symrise AG)

Newsgrafik #32968
 06.09.2017

Symrise again with industry-leading organic growth in the first half of the year 2017  (Company news)

— Organic Group sales up by a substantial 5.2 %
— EBITDA margin at 21.3 % continues to be on a very healthy level
— Cash flow from operating activities up 75 %
— Target for 2017: guidance increase for EBITDA margin to now over 20 %

Symrise AG remained on track for strong growth in the first half of the current fiscal year. The Group increased sales in all segments and regions and was once again among the fastestgrowing companies in the industry. Sales were up 3.6 % in the first half of the year to € 1,515.3 million (H1 2016: € 1,462.5 million). After adjustment for portfolio and exchange rate effects, the organic growth in sales actually amounted to 5.2 %. Earnings before interest, taxes, depreciation and amortization (EBITDA), at € 322.9 million, was at the same level as in the first half of 2016. With an EBITDA margin of 21.3 %, Symrise remains highly profitable. Against the backdrop of the very satisfactory business performance, Symrise is raising its full-year EBITDA margin guidance, and now expects the EBITDA margin in 2017 to exceed 20 %.

"The strong growth results from our unique positioning," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “The targeted and continuous investments in our competencies and capacity are paying off. We see this as a confirmation of our strategy. With the recent acquisition of Cobell, we are strengthening our position in the lucrative UK beverage market, which promises additional sales
potential for our innovative applications. We are in an excellent position to meet the rising demand for our products and to stay on track for growth in the second half of this year. Our goals are unchanged: We want to remain one of the fastest-growing companies in the industry and to operate highly profitable."

Demand remains strong
For the first half of the year, Symrise increased its sales by 3.6 % to € 1,515.3 million (H1 2016: € 1,462.5 million). Adjusted for portfolio and exchange rate effects, the Group achieved organic growth of 5.2 %, which again placed Symrise among the fastest-growing companies in the industry. This strong performance was carried by all segments and regions.

At the regional level, strong contributions to sales growth came from Latin America and EAME, with increases of 12 % and 4 % (at reporting currency), followed by North America with 2 % and Asia/Pacific with 1 %. Sales in Emerging Markets were 5 % higher in the period under review and accounted for 43 % of overall sales.

Symrise yet again with high earnings power
Symrise continued to deliver strong earnings in the first six months. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 322.9 million (EBITDAN for H1 2016: € 323.3 million). In particular due to a somewhat weaker demand in the Scent & Care segment, the EBITDA margin was slightly lower but still strong at 21.3 % (normalized H1 2016: 22.1 %). Net income for the period under review was € 141.8 million (normalized H1 2016: € 142.0 million). Earnings per share, at € 1.09, matched the previous year's normalized figure.

Solid financial position reinforced
Operating cash flow in the reporting period showed a 75 % increase to € 175.0 million (H1 2016: € 100.0 million). Along with the high capacity utilization, an improved working capital management supported the cash flow. The ratio of net debt (including pension provisions) to EBITDAN at 30 June 2017 stood at 3.1 (31 December 2016: 3.1). The medium term target for the ratio is the 2.0-2.5 range. With an equity ratio of 35 %, Symrise holds a strong capital position.

Symrise used the strong market environment in the first half of the year to issue a seven-year € 400 million convertible bond in June 2017. The aim of the transaction was to secure long-term funding through the capital market on favorable terms and to further diversify the investor base. The net proceeds will be used to pay down existing loans and capital market liabilities and for general business purposes of the Group.

Scent & Care segment
Scent & Care recorded sales of € 638.2 million in the first half of the year (H1 2016: € 667.8 million). The slight decrease was due to the strong sales in the previous year and the sale of Pinova's industrial activities at the end of 2016. Adjusted for the Pinova portfolio effect, the segment achieved an organic growth of 1.1 %, with good dynamics in Fine Fragrances and Cosmetic Ingredients.

The loss of the sales from the Pinova industrial activities and weaker demand for Beauty Care applications also impacted the EBITDA in the first half. EBITDA during the reporting period amounted to € 128.4 million, as compared to a normalized figure of € 140.1 million in the first half of 2016. The EBITDA margin stood at a level of 20.1 % (EBITDAN margin H1 2016: 21.0 %).

Flavor segment
The Flavor segment delivered a very satisfactory sales increase of 7.2 % in the period under review to € 554.8 million (H1 2016: € 517.8 million) in reporting currency. The organic growth, to which all application areas contributed, actually amounted to 8.6 %. The growth was driven mainly by strong demand for sweets and new businesses in beverages. There was also an increase in order intake for savory applications, especially in Western Europe and North Africa.

Due to increased demand, EBITDA in the segment was up 2.6 % to € 123.0 million (H1 2016: € 119.9 million), and the EBITDA margin was a very healthy 22.2 % (H1 2016: 23.1 %).

Within the scope of its strategy of continued portfolio expansion, Symrise signed a purchase agreement with the shareholders of the British company Cobell Limited in May 2017. Cobell, which was established in 1999, is a supplier of natural raw materials and juice bases for the beverage industry in the UK. The company generated in 2016 annual sales of around € 58 million. The acquisition reaffirms Symrise's goal of reinforcing its strong position in the British beverage market. Cobell complements the Group's current business activities in the UK, expands its local presence and creates closer proximity to key customers.

Nutrition segment
Nutrition was also a fast growing segment in the first half of the year. The segment seamlessly continued its dynamic growth course from the previous quarter, with sales up by 16.3 % to € 322.2 million (H1 2016: € 277.0 million). Adjusted for currency and acquisition effects (acquisition of Nutra Canada and Nutraceutix), organic growth amounted to a high growth of 8.6 %. This result was
bolstered by pet food applications which showed double-digit growth in almost all core markets. Substantial gains were also posted in food ingredients, especially in North and South America.

Due to the dynamic business performance, the segment achieved very pleasing results on the earnings side as well. EBITDA showed a 13.1 % increase in the reporting period to € 71.6 million (H1 2016: € 63.3 million). The EBITDA margin was an outstanding 22.2 % (H1 2016: 22.8 %).

Symrise raises profitability guidance
After the strong first half and a good start in the third quarter, Symrise is looking ahead to the remaining months of the year with confidence. Despite the political unrest and economic uncertainties in some countries, the Group expects demand and growth to be generally strong. Against this backdrop, and in view of the recent investment projects, Symrise is increasing its guidance for the EBITDA margin for the fiscal year 2017, and now expects to achieve a margin of over 20 %. In addition, the Company is confirming its goal of once again exceeding the growth rate of the global flavor and fragrances market. According to estimates, the global market is growing at an average annual rate of around 3 %. The medium-term targets remain in effect, including a compound annual growth rate (CAGR) in the 5-7% range and an EBITDA margin of 19-22%.
(Symrise AG)

Newsgrafik #32828
 24.07.2017

Symrise Climate Strategy Approved by “Science Based Targets initiative”   (Company news)

— International fragrance and flavoring manufacturer achieves climate goals it has set itself quicker than expected
— Symrise aims to reduce its carbon emissions by 17.5 percent by 2030

Sustainability has a high priority at Symrise – from resource-conserving and low-emission production methods and preserving biodiversity to supporting social equality. In pursuing these goals, the company has once again set itself lofty climate goals. Symrise was able to achieve these ahead of schedule in 2016. Now Symrise is taking things a step further. The Holzminden- based company is setting itself ambitious goals once again in order to fulfill its aspiration of meeting the demands of international climate researchers and to comply with the resolutions of the UN Climate Conference COP 21 in Paris.

The Science Based Targets initiative by CDP, UN Global Compact, WRI and WWF aims to raise the level of corporate climate protection and to also make it easier to assess. Time is running out, after all. If global greenhouse gas production continues on its present course, the average global temperature will increase by up to 4.8 degrees Celsius – which would have devastating consequences for planet earth. The Science Based Targets initiative aims to motivate companies to set themselves ambitious climate goals in order to stop this trend and limit global warming to two degrees Celsius at most. To do so, the initiators have developed the sector-based decarbonization approach (SDA), a new method in which players in each sector set their goals in accordance with scientifically based climate research for a period of time until 2050, allowing them to effectively counteract climate change. More and more companies around the world are setting science-based targets for themselves – but the list of German companies is rather short. “Symrise is one of the first German companies to apply for science-based targets,” said Dr. Helmut Frieden, Corporate Sustainability at Symrise. “We are even prouder that those running the initiative agree that the goals we have laid out are right and have approved them.”

Lila Karbassi, Chief of Programmes at the UN Global Compact - a Science Based Targets initiative partner, said: “It is encouraging to see companies such as Symrise set industry-leading targets to cut emissions. By ensuring targets are aligned with the goals of the Paris Agreement, Symrise is demonstrating to investors, customers and policymakers that they are preparing to transition to the low- carbon economy while future-proofing growth."

Working in line with the UN Climate Convention
The sustainability experts at Symrise defined the 2016 greenhouse gas emissions for the entire supply chain for the application process. Based on these, they developed concrete goals for the company’s production, which they then presented to the initiative’s steering committee for validation. Symrise is thus committing to reducing its greenhouse gas emissions by 17.5 percent by 2030. In addition, Symrise wants to ensure that suppliers who provide at least 80 percent of the entire purchasing volume of raw materials commit themselves to their own climate targets and reduction measures. In doing so, Symrise is a role model in terms of climate protection in Germany and is acting in accordance with the resolutions of the UN Climate Conferences COP 21 in Paris and COP 22 in Marrakesh.
(Symrise AG)

Newsgrafik #32799
 17.07.2017

Euronext Vigeo Index Names Symrise One of the 120 Most Exemplary Companies in the Eurozone  (Company news)

— Top scores in corporate governance and commitment to social and environmental issues
— 330 indicators successfully fulfilled
— Efficient, resource-conserving production processes also ensure the health and well-being of future generations

Rating agency Vigeo Eiris named Symrise, the fragrance and flavoring manufacturer based in Holzminden, one of the 120 leading companies in the eurozone with outstanding corporate responsibility due to its focus on sustainability and many other positive criteria. The internationally operating fragrance and flavoring manufacturer has also managed in recent years to rank among the 120 companies in Europe and around the world that fulfill all sustainability criteria.

“Our corporate strategy integrates aspects of sustainability along all segments of the value chain. We bear responsibility for the profitable use of the capital entrusted to us, the efficient use and protection of natural resources, the welfare of our employees and social interests,” says Symrise Chief Sustainability Officer Hans Holger Gliewe. Because our corporate responsibility can be confirmed with concrete figures and success, Symrise was named one of the 120 most exemplary companies in the eurozone again this year. Symrise was rated one of Europe’s 120 outstanding companies in 2012, with the eurozone added in 2013. And in 2014 the global fragrance and flavoring manufacturer was incorporated into the group of the world’s most progressive companies.

The Euronext Vigeo Eurozone 120 index comprises companies with the most successful environmental, social and governance performance in the eurozone, based on 330 indicators from 38 sustainability drivers. Commitment to social aspects, corporate governance, customer and supplier relationships, health, safety, human rights, the environment and working conditions are all considered to be positive criteria.

At Symrise, each and every production site is audited according to sustainability criteria. For instance, the flavor formulation technologies in the Flavor and Nutrition segments operate with reduced energy consumption, increased operational safety and improved performance profiles. New and improved processes are also always being developed to ensure that valuable natural resources are used effectively and waste and byproducts can be reduced.

“As a signatory of the United Nations Global Compact, we actively support the principles of responsible business outlined therein,” says Symrise Chief Sustainability Officer Gliewe. “Located in more than 40 countries around the world, our employees share these values as a basis for our joint goals.” The corporate strategy of the fragrance and flavor manufacturer based in Holzminden closely links economic goals with four sustainability pillars: footprint, innovation, sourcing and care. Footprint represents the company’s environmental footprint, innovation describes our resource-conserving and businessenhancing effects, sourcing stands for sustainable raw materials sourcing, and care illustrates value creation for employees and the surrounding communities. With this approach, Symrise aims to increase the positive effects of its own activities and further reduce the negative ones. “We also always take the welfare of future generations into account, with climate protection management, increasingly efficient processes and a portfolio that helps to meet the basic needs of a growing global population in terms of nutrition, health and well-being,” says Gliewe, who is pleased that the company has made it into the Euronext Vigeo index again.
(Symrise AG)

Newsgrafik #32748
 30.06.2017

EcoVadis Again Assigns Gold Status to Symrise for Sustainability Management  (Company news)

Symrise among the top three percent of all rated companies
— Company awarded gold status for third time for its corporate social responsibility
— Top marks in environment and procurement

For the third time in a row, the sustainability rating agency EcoVadis has awarded the fragrance and flavor manufacturer Symrise the gold status for outstanding sustainability management. In terms of ecological, social and ethical sustainability, the Holzminden-based company was once more among the top three percent of all manufacturers evaluated by EcoVadis in its category.

In the overall rating of its corporate social responsibility of 72 out of 100 possible points, Symrise achieved a rating far above the sector average and exceeded its own top score from the previous year by four points. In the environment section, the Group was again among the top two percent of its category with 80 points. Symrise improved its production practices to 70 points, therefore ranking among the best four percent in its category.

“We are delighted that we have been able to further improve our production of fragrances and flavors,” says Hans Holger Gliewe, Chief Sustainability Officer of Symrise AG. “Every employee who has contributed to this progress can be particularly proud of this result.”

CSR Rating Assesses 21 Criteria
EcoVadis analyzes and rates the sustainability performance of companies according to 21 criteria in the areas of the environment, social aspects, ethics and sustainability in the supply chain. The aim is to make it easier to integrate sustainability criteria into business relationships. That would allow companies to determine quickly whether their suppliers fulfill relevant sustainability standards. Key companies in the consumer goods industry in particular use the EcoVadis online portal to evaluate suppliers in this regard.

“With the CSR rating from EcoVadis, Symrise is able to transparently present its sustainability services to both existing and new customers while establishing itself as a preferred partner”, explains Gliewe.

Making CSR Comparable
EcoVadis analysts first compare the achievements of the company in the four areas environment, social aspects, ethics as well as sustainability in the supply chain. The results are shown for each area using an index value between 0 and 100 points. These sub-results are then weighted based on the industry and the size of the company to determine the overall CSR rating. The companies in the industry that were evaluated received an average of 43 of 100 possible points as in the previous year.
(Symrise AG)

Newsgrafik #32719
 23.06.2017

Symrise expands presence in British beverage market through acquisition of Cobell Limited  (Company news)

- Cobell as number one supplier for juices in Great Britain ideally complements Symrise’s activities
- Symrise to increase customer proximity in the British beverage market segment
- Cobell and Symrise to become the leading single source for beverage ingredients and formulations

Symrise AG will strengthen its position in the British market segment for beverages. The Company has signed an agreement to acquire Cobell Limited from the Managing Partners. Cobell, which was established in 1999, is the largest supplier of processed fruit and vegetable juices in Great Britain and a leading supplier across Europe. Cobell ideally complements the activities and will enhance Symrise’s local presence and customer proximity.

"Knowhow meets innovation – this is the guiding principle of our acquisition of Cobell. The Group is firmly anchored in the British market and operates with extremely high customer orientation. It thus represents an ideal match for Symrise. In recent years, we have seen increased demand for innovative beverage solutions. Together with Cobell we prepare the ground for accelerated growth and expand our footprint. By combining Cobell’s impressive application and manufacturing capacities with our strong portfolio of natural flavors and our joint technological knowhow we will become a driving force. In addition, we will significantly enhance our customer proximity and act as single source for beverage ingredients and formulations in Great Britain,” said Dirk Bennwitz, President Flavor Segment EAME.

Symrise has been active for more than five decades in Great Britain and is a highly valued supplier to the Food and Beverage industry. After significantly growing the sweet and savory activities in the past, Symrise now aims to further drive growth in the British beverage market category which comprises annual sales potential of more than £ 100 million. Cobell’s state-of-the art manufacturing sites will play a decisive role in reducing lead times and make Symrise a partner that is even closer to its customers.

Cobell runs a modern plant in Exeter covering the full production cycle from sourcing ingredients, developing customer-specific recipes to blending and packaging products on an aseptic basis. The product range comprises juices, purees, cordials, concentrates and alcoholic drinks. Cobell generated sales of about £ 50 million (€ 58 million) in 2016 and employs 56 people. Symrise will continue to run Cobell’s activities under the well-established Cobell brand.

"We are delighted to have found a strong new owner for Cobell. Symrise shares the same mindset culturally and from a business perspective. Cobell will benefit from Symrise’s strong access to an impressive range of natural ingredients, as well as additional technologies, such as in taste modulation. Symrise on the other hand will be able to enhance its local supply chain and benefit from Cobell’s specialist sourcing and global supply base. Together we will be able to significantly increase our offering and differentiate ourselves in the market with tailor made solutions that fully respond to local consumer needs," said Nick Sprague, Chairman and founder of Cobell.

Both parties have agreed not to disclose financial details of the acquisition. Closing of the transaction is expected to take place at the beginning of July 2017.
(Symrise AG)

Newsgrafik #32705
 16.06.2017

Symrise Launches New Asia-Pacific Innovation and Technology Centre  (Company news)

— Innovation-centric expansion to boost regional and local food manufacturing
capabilities
— To contribute to Singapore’s vision of becoming Asia’s regional food & nutrition hub

Global leader in flavors and fragrances, Symrise AG, on 23 May 2017 unveiled its new Asia-
Pacific Flavor Innovation and Technology Centre. It was officially opened by Dr Heinz-Jürgen Bertram, CEO of Symrise AG. The Centre marks the completion of the company’s over 30 € million expansion of its regional headquarters in Singapore, which aims to boost local food manufacturing capabilities and to contribute to Singapore‘s vision of becoming Asia’s regional food & nutrition hub. Partners, customers and guests from around Asia attended the event.

“Asia is fast becoming one of the main global sources of influence and inspiration for innovative food products. And major centres for business, lifestyle, technology, health and nutrition like Singapore will be at the heart of this megatrend“, said Dr Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG. “Similarly, Singapore will continue to be within the heart of our growth story and I believe the new research and innovation facilities will ignite greater collaboration, connectivity and creativity among industry stakeholders. That will further develop Singapore’s food research and manufacturing industry
capabilities“. Based in the company’s new state-of-the-art regional HQ building, the centre houses several facilities that have been designed in accordance with Symrise’s R&D strategy which focuses on connecting megatrends, consumer needs, customer requirements, sustainability, innovation and cost efficiency.

“Recognising that Asian consumer tastes are the future drivers of the global flavor industry, I am pleased to announce that Symrise will be the first major firm to base its Global Sensory and Consumer Insight function and teams in Asia,” added Mr Lionel Flutto, President, Flavor, Asia Pacific, Symrise. “This emphasises both, our commitment to Asia, and forming the foundation of our future innovations research, technology and development.”

Helping local and regional firms decipher evolving Asian tastes
The Flavor Innovation and Technology Centre is the latest Symrise initiative to help food manufacturing, FMCG, nutritional supplement and pharmaceutical companies gain insights into the tastes and preferences of Asia’s increasingly influential consumers. Research and technology capabilities will be applied to discover new flavor compounds, create new natural and sustainable products that meet the preferences and cultural requirements of Asian consumers and to demonstrate how these new products can be applied in shelf-stable manufactured foods. This research will be applied to develop both, food flavor innovation for customers in Asia, and also to support innovationdriven projects for key global customers.

The intention is to evolve industry expertise within Symrise Asia Pacific to a level that will allow the creation of new technologies for Singapore and regional customers. With the launch of the new Centre, Symrise Asia Pacific will also be able to mirror the capabilities available at the company’s global headquarters in Germany, and accelerate the development of new products for Singapore companies
looking to grow across Asia.

Looking to the Future
The next phase in the expansion and enhancement of Symrise regional operations here in Singapore will focus on the expansion and restructuring of Scent and Care (S&C) innovation, creation, oral care, life essentials and aroma molecules. The expansion will allow for the establishment of a new S&C Consumer Insights Centre. This centre will enable S&C to develop deeper market understanding, in order to create commercially effective branding campaigns, which is one of S&C’s core competencies.
(Symrise AG)

Newsgrafik #31473
 27.05.2016

Symrise generates substantial gains in sales and earnings in 2015  (Company news)

• Group sales up 23 % to € 2.6 billion
• Double-digit growth in all regions
• EBITDA rises 23 % to € 572.2 million; EBITDA margin at an outstanding level of 22 %
• Annual net income up 17 % to € 246.8 million
• Proposed dividend increase from € 0.75 to € 0.80 per share

Symrise AG was once again among the fastest-growing and most profitable companies in its sector in 2015. The Group experienced strong demand in both segments and all regions and increased sales by 23 % (18 % at local currency) to € 2,601.7 million (2014: € 2,120.1 million). EBITDA also showed strong growth and rose by 23 % to € 572.2 million (normalized EBITDA in 2014: € 464.5 million). The EBITDA margin increased to an outstanding 22.0 % (2014 normalized: 21.9 %).

Dr. Heinz-Jürgen Bertram (photo), CEO of Symrise AG, said: "In 2015 it was our decisive goal to substantially grow our business. We made targeted investments in growth and in expanding our competencies and know-how. Our portfolio clearly shows the benefits: It has expanded beyond our traditional product range and allows us to serve new, strategic business areas such as functional ingredients for everyday products. In 2015 we were once again one of the fastest-growing companies in our industry." He added, "A priority for us in 2016 is the cross-linking of our extensive expertise. In this way we will not only continue on track for success but also extend our competitive edge with a widely diversified portfolio."

Double-digit sales growth in all regions
Symrise benefited in the year under review from high capacity utilization and strong demand in all regions. Sales increased to € 2,601.7 million (2014: € 2,120.1 million). This represents growth of 23 % in reporting currency and 18 % at local currency. The Diana Group, which was acquired in mid-2014 and is now fully integrated, contributed sales of € 524.8 million (2014: € 233.9 million). Excluding the contribution of Diana, Symrise also generated strong sales growth with 10 % in reporting currency and 6 % at local currency.

Above-average growth in Emerging Markets
Symrise substantially expanded its position in Emerging Markets. In these fast-growing markets the Group increased its sales by 21 % (local currency) and generated 46 % of its total sales (2014: 47 %). The decrease as compared to the previous year reflects the regional sales mix of the Diana Group, which generates a higher sales proportion in Developed Markets.

Excellent profitability with EBITDA margin of 22.0 %
Symrise grew its EBITDA by 23 % to € 572.2 million (2014 normalized: € 464.5 million). The EBITDA margin rose to 22.0 % (2014 normalized: 21.9 %).

Symrise increased its net income in the year under review by 17 % to € 246.8 million (2014 normalized: € 211.6 million). Earnings per share increased from € 1.69 (normalized) to € 1.90, or 13 % as compared to the previous year.

In view of the strong performance, the Management Board and Supervisory Board propose a dividend of € 0.80 for the 2015 fiscal year (2014: € 0.75).

Increase in operating cash flow
The operating cash flow rose to € 375.2 million in 2015 (2014: € 343.2 million), reflecting the strong operating result. At 31 December 2015, the ratio of net debt, including pension reserves, to EBITDA amounted to 2.8 (normalized as at 31 December 2014: 3.2). The equity ratio increased from 35.8 % at the end of 2014 to 38.0 % at 31 December 2015. Symrise is thus very well positioned financially.

Scent & Care segment
The Scent & Care segment achieved sales of € 1,073.7 million in 2015 (2014: € 980.4 million). This represents an increase of 10 % (4 % at local currency). All business divisions contributed to growth, in particular Aroma Molecules and Cosmetic Ingredients. Symrise benefited above all from strong demand for menthol and cosmetic active ingredients.

Scent & Care grew its EBITDA by 4 % to € 231.2 million (2014: € 222.9 million). The EBITDA margin remained high, at 21.5 %, despite additional expenses for research and development and marketing initiatives in the fourth quarter (2014: 22.7 %).

In January 2016 Symrise expanded its fragrance activities with the acquisition of US-based Pinova Holdings, Inc. This has given the company access to additional natural ingredients which are used in perfume compositions. Moreover, Symrise has expanded its forward integration in menthol to include cooling substances for oral care.

Flavor & Nutrition segment
Flavor & Nutrition experienced a substantial 34 % increase in sales (31 % at local currency) and benefited in particular from strong demand for beverages and savory applications. Diana Group also achieved strong growth, especially with pet food and aquaculture applications. Excluding Diana, sales increased by 11 % (8 % at local currency).

EBITDA in this segment staged by 41 % to € 340.9 million (2014 normalized: € 241.6 million). The EBITDA margin rose to 22.3 % (2014 normalized: 21.2 %).

Good starting point for 2016 – mid-term targets confirmed
Symrise expects the economic environment for the current fiscal year to be challenging. Ongoing political conflicts in certain regions, heavy debt burdens of some countries and the low oil price are weighing down the global economy. With its worldwide presence and its diversified portfolio, the Group believes that it is very well positioned to continue its profitable growth course.

Symrise aims at outperforming the global F&F market in 2016, both at the Group level and in both segments. The Company has made a good start in the current fiscal year and will capitalize growth opportunities in Developed and Emerging Markets. Consequently, Symrise remains fully committed to the mid-term objectives extending to the end of 2020, namely a compound annual growth rate (CAGR) of 5–7 % and an EBITDA margin of 19–22 %.
(Symrise AG)

Newsgrafik #30219
 19.06.2015

Symrise Diversifies Portfolio for Natural Beverage Flavors through Acquisition of ...  (Company news)

... California-Based Flavor Infusion

- Access to technology, patents and formulas for natural-based beverage applications
- Strengthened footprint in the strongly growing market for flavored waters and non-alcoholic drinks
- Immediate integration of the business in Symrise’s US activities

Symrise AG is strengthening its product offering for natural beverage applications and further expands into the strongly growing market of flavored water: The Company signed an agreement to acquire Flavor Infusion, a highly specialized supplier for natural beverage solutions in North America, from its founders. With this investment, Symrise is gaining immediate access to the company’s profound knowledge as well as already marketed products and its most reputable customer base.

“The market for flavored waters, teas, sports and energy drinks is booming, especially in North America. Our latest acquisition is thus another strategic step to capitalize on the increasing consumer awareness for health and wellbeing, in particular the growing demand for infused water and non-alcoholic beverages. Flavor Infusion is an expert in this segment with a wide product portfolio, an impressive customer base and solid financials. The acquisition meets all criteria of our M&A strategy and will provide immediate value to Symrise. Our customers will benefit from a highly diversified offering of functional and hydration based drinks as well as numerous applications”, said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.

Over the years, Flavor Infusion has built up distinct expertise in beverage application and development as well as process technologies for natural beverage applications. Since its foundation in 2004, the company has strongly benefited from the positive dynamics in the US beverages market which, according to estimates, is growing by 5 to 7 % annually. Flavor Infusion has continuously expanded its customer base that comprises some of the largest and most reputable global beverage and food manufacturers as well as regional champions. Furthermore, the company developed a diversified portfolio of proprietary beverage bases, formulas and marketed applications that are acquired through the transaction.

California-based Flavor Infusion generates turnover of about US$ 10 million.
Symrise will integrate the activities of Flavor Infusion in its US Flavor & Nutrition business immediately after closing, which is expected in the third quarter 2015.
(Symrise AG)

Newsgrafik #29167
 27.08.2014

Symrise Continues to Grow and Significantly Increases Profitability  (Company news)

• EBITDAN rises by 9 % to € 209 million
• EBITDAN margin reaches 22.2 %
• Group sales up by approximately 6 % at local currency
• Earnings per share before special items up 14 % to € 0.90
• Integration of Diana Group initiated

Symrise AG remained on its successful course during the first half of 2014. The Group increased sales at local currency in all regions, significantly raised the operating result and completed the acquisition of French Diana Group as planned. One-off non-recurring special items in connection with M&A activities affected the operating result with € 3.4 million and the financial result with € 7.5 million. Earnings before interest, taxes, depreciation and amortization without special items (EBITDAN) increased significantly by 9 % to € 209 million (H1 2013: € 191 million). The corresponding normalized EBITDA margin amounted to 22.2 %, compared to 20.5 % in the prior year period. Furthermore, Symrise increased its sales in the first six months to € 942 million (H1 2013: € 935 million). At local currency, sales grew by 6 %. At the end of July, Symrise completed the acquisition of French Diana Group, which will first be consolidated from July 2014 onwards. The integration process has already been initiated.

Dr Heinz-Jürgen Bertram, CEO of Symrise AG: “Symrise is entering the second half of the year with full steam ahead. In the first six months we have grown significantly and improved our profitability even further. High capacity utilization, our continued cost discipline and, above all, our focus on high-margin business were significantly contributing to this development. By successfully completing the acquisition of Diana at the end of July, we have finalized the largest acquisition in our company’s history on schedule. We also completed the acquisition financing in record time. This allows us to now fully concentrate on the integration process in the areas of research and development as well as production and sales. I am certain that we will further accelerate our profitable growth together with Diana.”

Sales Increase of 6 % at Local CurrencySymrise increased sales in the first half-year by 6 % at local currency to € 942 million. In reporting currency sales growth amounted to 1 %. Strong impulses came from all regions and both divisions.
With a sales increase of 12 % at local currency, Latin America recorded the strongest growth dynamics. EAME grew sales by 5 %, Asia/Pacific and North America increased sales by 6 % and 4 % respectively.

Normalized EBITDA Margin Improves to 22.2 %
Good capacity utilization during the first six months, consistent cost discipline and the focus on high-margin business significantly contributed to the earnings increase. In the reporting period one-off non-recurring items of € 3.4 million occurred in connection with the acquisition and integration of the Diana Group. These affect the Flavor & Nutrition segment only. Group earnings before interest, taxes, depreciation and amortization normalized for special items (EBITDAN) increased by 9 % to € 209 million (H1 2013: € 191 million). The normalized EBITDA margin improved on a high level by 1.7 percentage points to 22.2 % (H1 2013: 20.5 %). In addition, the financing of the acquisition led to one-off costs in the amount of € 7.5 million which are attributed to the financial result. Net income for the period came in at € 101 million compared to € 93 million in the prior year. Earnings per share rose from € 0.79 to € 0.84; on a normalized basis, earnings per share in the first half of 2014 amounted to € 0.90 per share. This corresponds to an increase of 14 %.

Significant Rise in Cash Flow from Operating Activities
Cash flow from operating activities also increased significantly to € 109 million (H1 2013: € 77 million). As of June 30, 2014, the ratio of net debt including pension provisions to EBITDA amounted to 1.1. This represents a significant improvement as compared to 2.0 at the end of 2013 and is a result of the capital increase carried out in May.

Sales Growth of 9 % in Emerging Markets
Symrise once again benefited from its strong presence in the Emerging Markets during the first half-year. The company recorded a sales increase of 9 % at local currency in these particularly dynamic markets, thereby exceeding the Group’s overall growth rate. The share of Group sales attributed to the Emerging Markets amounted to 48 %, the same level as in the prior year period. At local currency, the share already came to more than 50 %.

Scent & Care
The Scent & Care segment extended its business in every region and boosted its sales by 6 % at local currency. In reporting currency this represents an increase of 0.5 % to € 493 million compared to the exceptionally strong prior year (H1 2013: € 490 million). Strong impulses were again seen in the Fragrances and Life Essentials divisions, which both realized high single-digit growth rates.
With an increase of 12 % at local currency, Scent & Care generated significant sales growth in Latin America. Furthermore, the division increased its sales in EAME by 5 % and by 4 % in both, North America and Asia/Pacific.
Scent & Care increased its EBITDA to € 110 million (H1 2013: € 98 million). The EBITDA margin rose from 20.1 % to 22.3 %.

Flavor & Nutrition
The Flavor & Nutrition segment generated a sales growth of 6 % at local currency to € 449 million (H1 2013: € 444 million). In reporting currency this corresponds to a sales increase of 1 %. Similar to Scent & Care, the Emerging Markets made an important contribution to the division’s development.
Latin America was the fastest-growing region, generatinga sales growth of 12 % at local currency. In Asia/Pacific, Flavor & Nutrition achieved sales growth of 8 % at local currency. In EAME, sales rose by 5% in local currency despite high comparable figures from the prior year period. North America built on the positive development of the preceding months and grew by 3 % at local currency.
Flavor & Nutrition generated an EBITDA before special items of € 99 million during the reporting period (H1 2013: € 93 million). The normalized EBITDA margin amounted to 22.1 % (H1 2013: 20.9 %).

Diana Integration Initiated Following Completion of Transaction
Following the announcement of the planned acquisition of Diana Group in April, Symrise successfully implemented several measures in the second quarter for financing the transaction. In May, Symrise generated proceeds of around € 400 million from a capital increase based on authorized capital. In addition, the company secured short and medium-term borrowings from its primary banks amounting to € 400 million. Symrise also successfully placed a € 500 million long-term bond that was oversubscribed several times. Symrise used this comprehensive financing concept totaling € 1.3 billion at highly attractive conditions to finance the largest acquisition in its history.
The transaction was completed on July 29, 2014 following the corresponding approvals. Symrise subsequently introduced initial measures for integration. Hereby, the focus lies on the integration of Diana as an independent division in the Flavor & Nutrition segment, which is responsible for all activities in the area of nutrition. Symrise and Diana will continue to focus intensively on their customers and research projects. Diana will be consolidated for the first time in the third quarter of 2014.
Symrise will continue to report at the level of both Flavor & Nutrition and Scent & Care segments.

Positive Outlook for 2014
Following a successful first half-year, Symrise confirms its outlook for the 2014 fiscal year. The Group further expects solid demand and a positive market development in all regions and in both divisions. For 2014 Symrise is furthermore confident to outperform local currency growth of the global market for fragrances and flavors. Furthermore, Symrise continues to aim at an EBITDA margin of more than 20 %. The objectives defined for the 2020 fiscal year continue to apply to the expanded Symrise AG, including the addition of the Diana Group: Symrise aims at an annual sales growth (CAGR) between 5 % and 7 % and an EBITDA margin between 19 % and 22 %.
(Symrise AG)

Newsgrafik #28530
 28.03.2014

Symrise Achieves Record Levels in Sales and Profitability in 2013  (Company news)

• Sales increase by 10 % at local currency in 2013
• Substantial 10 % increase in EBITDA to EUR 373.1 million
• Net income sets new all-time high with EUR 172 million
• Dividend increase to EUR 0.70 proposed
• For 2014 outperformance of market growth targeted – long-term outlook confirmed

Symrise AG continued its dynamic profitable growth course in 2013 and achieved new all-time highs in sales and earnings during its tenth anniversary year. The Group grew sales by 6 % to EUR 1,830 million (2012: EUR 1,735 million). In local currency, this corresponds to an increase of 10 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose considerably by 10 % to EUR 373 million (2012: EUR 339 million). With an EBITDA margin of 20.4 % (2012: 19.5 %), Symrise managed to further increase its profitability this past fiscal year. These excellent developments were supported by both divisions. Scent & Care performed particularly well, benefiting from a positive consumer sentiment worldwide, strong demand for menthol and the fragrance activities acquired from the Belmay Group. Symrise recorded the strongest growth at local currency in North and Latin America. The group also continued to grow in the Emerging Markets and increased sales at local currency by 11 % compared to the previous year.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, said: “In the 2013 fiscal year, Symrise again clearly outperformed the global market for flavors and fragrances. We achieved new records in sales and earnings despite a very volatile economic climate. We particularly benefited from our expanded menthol activities and from high demand for flavors used in sweet and savory applications. Our expanded fragrance activities in the USA also made a significant contribution. Ten years after its founding, Symrise holds a leading position in all of its market segments. This is the result of our focused expansions, the diversification of our customer base and our innovative portfolio. Symrise is thus well-positioned to maintain its excellent growth and earnings trajectory as it opens the next chapter of its corporate development.”

Group Sales Up 10 % at Local Currency
Symrise grew Group sales in the 2013 fiscal year by 6 % to EUR 1,830 million (2012: EUR 1,735 million). At local currency, this corresponds to a 10 % increase. Symrise therefore successfully accomplished its goal of growing faster than the global market for flavors and fragrances. According to estimates, the market grows by 2 to 3 % per year.
In North America, Symrise achieved its strongest sales growth with 11 % (14 % at local currency). Alongside of organic growth, the Group also benefited from its acquisition of the US-American Belmay Group’s fragrance activities in March 2013. In the EAME region, Symrise posted sales gains of 5 % (7 % at local currency). In the Asia/Pacific region, Symrise increased sales by 4 % (10 % at local currency). Sales performance in Latin America was weakened by the devaluation of some local currencies compared to the Euro, therefore sales developed only moderately with an increase of 2 %. Without these negative currency effects, sales growth in Latin America amounted to 12 %.

EBITDA Increases 10 % to EUR 373 Million
Symrise once again demonstrated its high profitability in 2013: Despite strategic growth investments in research and development, new production capacities and additional sales units, the Group boosted its earnings before interest, taxes, depreciation and amortization (EBITDA) by 10 % to EUR 373 million (2012: EUR 339 million). The EBITDA margin increased from 19.5 % in the previous year to 20.4 % and therefore was within the targeted range of between 19 and 22 %. Symrise was thus once again among the most profitable companies in the industry.
Net income was up by 9 % to EUR 172 million (2012: EUR 158 million), the highest figure ever since the founding of Symrise. Correspondingly, earnings per share rose to EUR 1.46 (2012: EUR 1.33). The Executive and Supervisory Boards will therefore propose a dividend of EUR 0.70 (2012: EUR 0.65) for the 2013 fiscal year at the Annual General Meeting on May 14, 2014.

Cash Flow from Operating Activities Up 25 %
The Group’s good earnings performance had a positive impact on cash flow from operating activities: It increased by 25 % to EUR 274.8 million (2012: EUR 219.5 million).
Net debt including pension provisions decreased to EUR 744.8 million compared to fiscal year 2012 (Dec. 31, 2012: EUR 808 million). The ratio of net debt including pension provisions to EBITDA came to 2.0 (Dec. 31, 2012: 2.4) and was therefore at the lower end of the targeted range of 2.0 to 2.5.

Sales Increase by 11 % at Local Currency in Emerging Markets
Symrise’s strategy places a strong focus on business in the Emerging Markets. For years, the Group has been enhancing its presence in these markets and aligning its offers with their specific demand profiles, which are characterized by growing populations and economic progress. Although economic performance was weaker in certain Emerging Markets in 2013, Symrise managed to continue its growth course unhindered. The Group increased sales in Emerging Markets by 11 % at local currency. With a share of 48 % in reporting currency, the Emerging Markets delivered almost half of group sales in 2013.

Scent & Care Division
The Scent & Care division seamlessly continued its dynamic growth course in 2013 and increased sales by 9 % to EUR 960.4 million (2012: EUR 882.8 million). At local currency, this corresponds to a growth of 13 %.
The division expanded both, organically as well as through acquisitions and benefited from three factors: the high demand for perfumes, the fragrance activities acquired from Belmay and the menthol business.
Scent & Care’s strongest regional growth was posted in North America. Here, sales were up by 19 % at local currency – driven by high, double-digit growth rates in the Oral Care and Aroma Molecules application areas as well as by the business acquired from Belmay. The second-strongest region in the Scent & Care division was Asia/Pacific, which posted a sales increase of 14 % at local currency. This result was especially supported by business performance in China, India, Japan and Indonesia. Latin America also developed dynamically: The region increased its sales by 11 % at local currency and particularly benefited from high demand in the perfumes and cosmetics application areas. After the sales drop in the prior year, the EAME region showed a strong recovery in 2013 – recording a sales increase of 10 % at local currency. Along with the positive developments in Western Europe, the main contributors to this result were the recovery in Eastern Europe and strong growth in Africa and the Gulf region.
Scent & Care increased its EBITDA to EUR 194.5 million (2012: EUR 161 million). The EBITDA margin rose to 20.3 % compared to 18.2 % in 2012.

Flavor & Nutrition Division
Flavor & Nutrition increased sales by 2 % to EUR 870 million in 2013 (2012: EUR 852 million). Adjusted for exchange rate effects, this growth amounted to 6 %. Every application area contributed to this growth, with sweet and savory products making the strongest contributions, as well as the Consumer Health application area.
Latin America recorded the strongest sales increase for the division with sales up by 15 % at local currency. The region benefited from strong growth in all flavor application areas. The second-strongest region was Asia/Pacific, which posted 7 % sales growth at local currency. Here, Flavor & Nutrition expanded its business, especially with savory products as well as in the Consumer Health area. In North America, the division increased sales by 6 % and benefited from considerable new business with selected customers. In the EAME region, Flavor & Nutrition posted even stronger growth than in the previous year, up 5 % at local currency. This was mainly driven by higher demand from Eastern Europe, Africa and the Gulf region. The mixing plant that opened in Holzminden this past June also provided further capacities and contributed to the result.
Flavor & Nutrition generated an EBITDA of EUR 178.6 million (2012: EUR 177.8 million). The EBITDA margin was 20.5 % (2012: 20.9 %) despite large investments into new capacities and sales units.

Focus on Sustainable, Profitable Business
At the beginning of 2013, Symrise announced long-term targets for its business activities for the first time. The targets apply through the end of the 2020 fiscal year. The Group is aiming to increase sales by an average of 5 to 7 % annually (CAGR). In addition, Symrise is also striving to be among the most profitable companies in the industry. By the end of 2020, earnings before interest, taxes, depreciation and amortization (EBITDA) should amount to more than EUR 500 million. The EBITDA margin should be within the range of 19 to 22 %.
Symrise’s profitable growth course is based on three strategic pillars: The focused expansion of its business in established and particularly Emerging Markets, the constant improvement of its efficiency as well as innovations within the context of a diversified product portfolio. The Group links commercial success with sustainable business practices. Accordingly, Symrise aims to procure its most important natural raw materials from sustainable sources by 2020. Symrise also wants to further reduce its impact on the environment.

Above-Average Growth Targeted for Current Fiscal Year 2014
Symrise has entered fiscal year 2014 with positive economic expectations. The Group expects to grow in both divisions and to benefit from solid consumer demand. Although dynamics in some Emerging Markets have recently decreased to some extent, Symrise remains confident in its ability to also expand business in those markets in 2014. In addition, Symrise again anticipates solid results from the established markets. Accordingly, Symrise is expecting to grow as a Group and in both divisions faster than the international market for flavors and fragrances, which is projected to grow by between 2 to 3 %. With respect to cost development, Symrise anticipates continued volatility with raw material prices. Some currencies will also remain under pressure. Symrise nonetheless confirms its objectives to deliver profitable growth and to achieve an EBITDA margin of around 20 % in 2014.
(Symrise AG)

Newsgrafik #27983
 18.11.2013

Symrise achieves Strong Growth in Sales and Earnings  (Company news)

• Group sales increase by 10 % at local currency to EUR 1.4 billion
• Emerging Markets exceed Group growth with sales up by 11 % at local currency
• EBITDA increase of 10 % to EUR 290.2 million
• EBITDA margin increases to 20.7 %

Picture: Dr. Heinz-Jürgen Bertram, CEO of Symrise AG

Symrise AG continued its robust growth in the third quarter of 2013 with strong momentum. The Group increased sales to EUR 1,401.2 million in the first nine months of 2013; at local currency this translates into an increase of 10 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 12 % at local currency to EUR 290.2 million. With an EBITDA margin of 20.7 %, Symrise remains one of the most profitable companies in the industry. Both divisions and every region contributed to this positive performance. In the Emerging Markets Symrise was able to increase sales by 11 % at local currency, thereby exceeding the Group’s overall growth rate.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG said: “Symrise has carried strong momentum into the second half of the year. We successfully left behind slight economic slowdowns, which occurred in certain markets. Along with high demand, our investments paid off: The new menthol capacities were well utilized and the US fragrance activities acquired at the beginning of the year provided an additional boost to our fragrance business. For the remaining weeks of 2013, we are confident on the continuation of Symrise’s robust development. We plan to once again grow faster than the market and end the fiscal year as one of the most profitable companies in the industry.”

Double-Digit Growth in Nearly All Regions
In the first nine months of the current fiscal year, Symrise increased its sales by 6 % in reporting currency to EUR 1,401.2 million (9M 2012: EUR 1,319.6 million). At local currency, this corresponds to a 10 % increase. North America was the strongest region, generating sales growth of 15 % at local currency. Symrise benefited from both, its existing business and the fragrance activities acquired from Belmay at the start of the year. Latin America was the second strongest region, posting a sales increase of 12 % at local currency. The Asia/Pacific region came in third with a sales increase of 11 %. Meanwhile, EAME was able to leave the difficult developments of the previous year behind – achieving solid growth of 7 % at local currency.

High Profitability with an EBITDA Margin of 20.7 %
Due to good utilization rates and ongoing cost management, the cost of sales was disproportionately low. Price decreases for certain raw materials also contributed to this positive development. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 10 % (12 % at local currency) in the first nine months to EUR 290.2 million (9M 2012: EUR 264.4 million). With an EBITDA margin of 20.7 %, Symrise remained highly profitable during the reporting period.
Net income rose by 11 % to EUR 139.9 million (9M 2012: EUR 125.9 million) in the reporting period. As a result, earnings per share rose from EUR 1.07 to EUR 1.18.

Strong Development in Cash Flow from Operating Activities
Cash flow from operating activities grew by more than 27.7 % to EUR 176.2 million (9M 2012: EUR 138.0 million). The ratio of net debt (incl. pension provisions) to EBITDA amounted to 2.2 (December 31, 2012: 2.4). Symrise therefore has sufficient financial leeway to further implement its growth strategy.

Sales in the Emerging Markets Outpace Group Growth
Symrise also benefited from sustained strong momentum in the Emerging Markets. Sales in these regions were up by 11 % at local currency and therefore exceeded the Group’s overall sales growth. The share of overall sales generated in the Emerging Markets totaled 48 %.

Scent & Care Division
The Scent & Care division grew sales by 10 % (14 % at local currency) to EUR 736.3 million (9M 2012: EUR 670.6 million) and particularly benefited from higher demand in the Aroma Molecules and Fragrances business units.
The expanded menthol production capacities added last year and the fragrance activities acquired from Belmay in the first quarter also contributed to the positive development. Moreover, both measures underscore Symrise’s strategy of investing in value creation aligned with market and customer needs.
The division posted its strongest growth in North America with sales up by 20 % at local currency. The Asia/Pacific region also generated strong growth and achieved a sales increase of 15 % at local currency compared to the previous year’s period. In Latin America, Scent & Care sales increased by 11 % at local currency despite high comparables from the previous year. The EAME region experienced a significant recovery from the previous year with 10 % sales growth at local currency. This can be particularly attributed to activities in the Aroma Molecules and Life Essentials segments.
EBITDA in the Scent & Care division increased by 22.5 % to EUR 151.2 million (9M 2012: EUR 123.5 million). The EBITDA margin improved to 20.5 % compared to 18.4 % in the previous year.

Flavor & Nutrition Division
Flavor & Nutrition increased sales by 2.5 % during the reporting period to EUR 664.9 million (9M 2012: EUR 649.0 million). At local currency, this corresponds to a 6.2 % increase.
The division benefited from especially high demand for products from the Sweet and Savory application areas. The Consumer Health business unit also developed positively. Regionally, Flavor & Nutrition achieved its greatest sales growth in Latin America with an increase of 16 % at local currency. The second strongest region was Asia/Pacific with an increase of 7 % at local currency, followed by North America which grew 6 % at local currency. The positive developments from the first half also carried over in the EAME region. Solid demand was seen in the Emerging Markets of Eastern Europe, the Near and Middle East as well as in the established markets of Western Europe, which resulted in a sales increase of 4 % at local currency for the region.
Flavor & Nutrition generated an EBITDA of EUR 139.0 million (9M 2012: EUR 140.9 million). The slight decrease compared to the previous year’s period can be attributed to the development of the sales organization in Asia/Pacific as well as costs related to new R&D projects. Despite these investments, the EBITDA margin of 20.9 % (9M 2012: 21.7 %) remains at a good level.

Confident Outlook for the Fourth Quarter
Thanks to the strong sales and earnings developments of the first nine months, Symrise has entered well-positioned into the fourth quarter. The Group expects sustained robust demand and positive market dynamics for all regions and in both divisions. As a result, Symrise is confirming its goal of once more growing faster than the global market for fragrances and flavors in 2013. Beyond this, Symrise aims to remain among the most profitable companies in the industry. The Group continues to strive for the objectives it set for the fiscal year 2020: Sales growth (CAGR) should amount to between 5 and 7 % per year and the EBITDA margin should develop within the range of 19 and 22 %.
(Symrise AG)

Newsgrafik #27621
 23.08.2013

Symrise Achieves Sales Increase and Gains Market Share at Ongoing High Profitability  (Company news)

• Group sales rise by 10 % at local currency
• Emerging Markets show strongest growth with 12 % increase
• EBITDA increases by 11 % at local currency
• Continuing investments in future growth

Symrise AG further increased its pace in the second quarter and notably strengthened sales and earnings in the first half of 2013. The Group grew in both divisions and across all regions and increased sales to € 934.7 million (H1 2012: € 871.6 million). This corresponds to an increase of 9.5 % at local currency. Earnings before interest, tax, depreciation and amor-tization (EBITDA) rose to € 191.2 million. With an EBITDA margin of 20.5 %, Symrise once again achieved a high profitability level despite continu-ing investments in capacity and personnel expansions.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG: "Symrise also substantially grew in the second quarter – achieving strong figures in both the emerging and developed markets. With an increase of 14 % at local currency, North America was the region posting the strongest sales growth. EAME, which was impacted last year, saw a good recovery and also achieved solid sales growth. In our op-erations, we continued at full speed: We introduced a number of new cosmetic ingredients and consolidated our powder mixing operations for flavor manufac-turing under one roof at our headquarters in Holzminden; we also brought addi-tional capacities into operations. After a robust start in the first half, we are en-tering into the second half of our anniversary year from a strong position. We will continue to implement our business expansion plans, adding new and inno-vative product solutions to our portfolio. In addition, we will enhance our position in both, industrialized nations and Emerging Markets."

Growth in all Regions
In the first half of 2013, Symrise increased sales by 7.2 % in the reporting currency to € 934.7 million (H1 2012: € 871.6 million). At local currency, sales were up by 9.5 %. Every region and both divisions contributed to this result. North America posted the strongest growth with sales up by 13 % (14 % at local currency) in the first half. The second largest gains were made in Asia/Pacific, with a sales increase of 10 % (13 % at local currency). Compared to the previous year, notably improved figures were recorded in EAME: the region achieved a pleasing sales growth of 5 % (6 % at local currency) thanks to especially good dynamics in Eastern Europe. As expected, Latin America de-veloped modestly compared to its above-average growth in previous years, realizing a sales growth of 3 % (10 % at local currency).
EBITDA of € 191.2 Million Reflects Sales Growth and Investments
Symrise's profitability especially benefited from the company's robust sales in the first half of 2013. A slight relaxation in the prices for chemical raw materials also had a positive impact. By contrast, expenses increased for the continued expansion of capacities in sales as well as in research and development. In fact, R&D expenses saw the strongest increase and grew by 13 % year on year due to the full project pipeline. Nonetheless, earnings before interest, tax, de-preciation and amortization (EBITDA) rose by 11 % at local currency to € 191.2 million (H1 2012: € 174.0 million). Symrise therefore remained highly profitable, achieving an EBITDA margin of 20.5 %.
Net income for the reporting period rose by 12 % to € 93.4 million (H1 2012: € 83.5 million). Earnings per share correspondingly increased to € 0.79 after € 0.71 in the first half of 2012.

High Utilization Supports Cash Flow from Operating Activities
Cash flow from operating activities increased by 23 % to € 77.0 million (H1 2012: € 62.5 million). This was mainly due to the strong increase in sales and solid earnings in the first half. The ratio of net debt including pension provisions to EBITDA amounted to 2.5 as of June 30, 2013; despite the dividend distribu-tion totaling € 77 million the ratio thus only slightly changed compared to the level of the year end 2012 (Dec. 31, 2012: 2.4).

Emerging Markets Post High Sales Growth of 12 %
As part of its strategy, which aims at profitable growth, Symrise continues to advance its activities in the Emerging Markets. Symrise grew sales by 12 % at local currency in these rapidly expanding markets, thereby exceeding the Group's overall growth rate. The Emerging Markets' share of total sales rose to 48 % (H1 2012: 47 %).

Scent & Care Division
The Scent & Care division expanded its business in every region and boosted its sales to € 490.3 million. Compared to the prior year period, this corresponds to a sales increase of 10.3 % (12.5 % at local currency). The production capacities for menthol, which were expanded in 2012, have been well utilized. Scent & Care also benefited from high demand in the areas of Oral Care and Fine Fragrances as well as cosmetic ingredients. In the second quarter, Symrise was once again recognized for its innovative strength and received three awards for new substances.
Scent & Care achieved its strongest growth in North America with sales up 18 % at local currency; greatest contributions came from the Aroma Molecules and Fragrances business units. The fragrance activities acquired from Belmay in 2012 also contributed. In Asia/Pacific, the division generated a double-digit sales growth of 17 % at local currency. EAME increased sales by 9 % at local curren-cy and Latin America was up by 8 % at local currency.
Scent & Care increased its EBITDA by 21 % to € 98.4 million (H1 2012: € 81.0 million). The EBITDA margin was at a pleasing level of 20.1 % (H1 2012: 18.2 %).

Flavor & Nutrition Division
Flavor & Nutrition increased sales by 4 % to € 444.4 million (H1 2012: € 427.2 million). At local currency, this corresponds to a growth of 7 %.
Applications for culinary products and snacks as well as Consumer Health particularly benefited from high demand. The strongest growth was recorded in Latin America with a sales increase of 13 % at local currency. The second-strongest region was Asia/Pacific, which posted 9 % growth at local currency. In North America, sales were up by respectable 8 % at local currency, despite high figures from the previous year. The EAME region continued its positive developments from the first quarter and increased sales by 4 % at local currency. Ample demand in emerging markets of Eastern Europe as well as in the es-tablished Western European markets contributed to the good growth. To the contrary, demand was weaker in Southern European countries.
Flavor & Nutrition generated an EBITDA of € 92.8 million (H1 2012: € 93.0 mil-lion). Despite sustained high prices for natural raw materials and additional in-vestments relating to new customer and research projects, EBITDA remained in line with the previous year. The EBITDA margin of 20.9 % (H1 2012: 21.8 %) was slightly higher than the Group's figure.

Outlook
Overall, Symrise expects robust demand to continue in the second half of 2013. Apart from some regional markets, the Group also expects good dynamics across all regions. Symrise therefore confirms its goal for 2013 to once again notably exceed growth of the global market for fragrances and flavors, which is estimated to be between 2 % and 3 %. Additionally, Symrise continues to work systematically towards its medium-term targets set for the 2020 fiscal year. Ac-cording to these, the Group wants to achieve an annual sales growth (CAGR) of between 5 % and 7 % with an EBITDA margin between 19 % and 22 %.
(Symrise AG)

Newsgrafik #27615
 20.08.2013

Recognition for Symrise's Supply Chain Management  (Company news)

• Among four finalists in value creation approaches
• Nominated for sustainable vanilla supply chain
• Responsible actions from cultivation through to the end product

Symrise was named one of the four finalists for the Supply Chain Management Award. The fragrance and flavoring manufacturer impressed the independent jury with its sustainable vanilla sourcing in two preliminary rounds. From the vanilla bean to customers’ end products, Symrise shows full transparency and creates added value for all stakeholders along the vanilla value creation chain.
The Supply Chain Management Award honors intelligent and innovative solutions that significantly enhance a company’s competitive position and take on a pioneering role in the industry. According to the jury, Symrise is one of these companies. The company thus was among the final four in the competition.
Symrise was able to set itself apart from the top-class competition with its sustainable sourcing approach in addition to its innovative solution for tracking products from source to customer. The jury selected the four finalists from more than 20 candidates – all of whom were subject to two preliminary rounds which included an on-site visit. Each company set a unique focus for its application and presentation.
Symrise concentrated on its approach to the vanilla supply chain. The company has been involved to supporting vanilla cultivation in Madagascar for years. Symrise is the only market participant from the fragrance and flavoring industry to work directly with the farmers from the East African island nation. Along with numerous social projects covering the areas of education, nutrition and health, Symrise also supports farmers to meet internationally recognized certification standards in cultivating and processing the beans.
These activities both enhance the farmers’ independence and improve their living conditions. At the same time, they anchor Symrise’s broad network in these village communities. This cooperation between the farmers and the company enables both parties to jointly optimize cultivation, establish the best harvest times and achieve the highest possible vanillin content after fermentation. The result is premium quality for customers in the beverage, food, cosmetics and fragrance industries.
With its local involvement, Symrise ensures a short supply chain in addition to complete traceability and transparency. But even on the other end of the value creation chain, the company displays its innovative strength: With e-business solutions, Symrise is closely connected to its customers. This allows for optimal sales estimates, highly efficient processes – from placing orders through to delivery – and therefore a seamless supply chain. The overall result is outstanding customer satisfaction.
“The vanilla supply chain is just one example of how we are innovatively linking sustainability and efficient business processes,” says Stephan Sielaff, Senior Vice President Global Operations Flavor & Nutrition at Symrise. “In all of this, we are faced with partially diverging stakeholder expectations and a number of practical challenges when implementing these principles. With the intelligent combination of our global expertise and local experience, we are overcoming these challenges in a responsible and forward-thinking manner.”
In 2013, the Supply Chain Management Award is part of the recently launched “EXCHAiNGE – The Supply Chainers’ Convention” international specialist conference. 180 guests from industry, science and specialist media were in attendance at the HOLM forum at Frankfurt Airport for the celebratory evening event, where the winners and finalists were honored. The various solutions were presented to the large audience at this year’s EXCHAiNGE conference.
(Symrise AG)

24.07.2013

Symrise Receives Two Honors  (Company news)

Symrise was recognized for its efforts in promoting women in the work-place by the Women’s Career Index, an initiative that was launched under the patronage of Federal Minister Dr. Kristina Schröder. The initiative’s goal is to promote transparency regarding women’s prospects for career advancement at companies.

The promotion of women is an important issue in society and companies have an especially important role to play in the matter. They establish the working conditions for women, which include aspects such as flexible working hours and childcare. The goal of the Women’s Career Index is to bring greater transparency to the discussion on promoting women with a standardized, objective assessment benchmark.

The Holzminden-based company Symrise gladly accepted this challenge and was assessed on its performance in areas such as women in management positions, internal commitments on promoting women and overall conditions for the advancement of women.

The results were announced at a festive ceremony at the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth, where outstanding companies were recognized. Federal Minister Kristina Schröder honored Symrise AG twice at the ceremony:

First, Symrise was recognized as one of the ten best companies in terms of corporate structure, employee motivation and overall work conditions. The second honor highlighted the Holzminden-based company’s internal communications. Head of HR, Dr. Iñigo Natzel, and Head of Corporate Communications, Bernhard Kott, personally accepted the awards.

With its compelling and thought-provoking submission, Symrise demonstrated its credible corporate communications, which contribute to the long-term sup-port of women within the global company, according to the Minister.

“We are very pleased with the two awards from the Federal Minister for Family Affairs,” said the Symrise delegation at the event. “They show that we are on the right path with our strategy of integrating the diversity of society into our company.”

Germany’s major companies were invited to participate in an initial survey on the subject in 2013. The survey focused on real facts and avoided subjective opinions. The initiative is interested in establishing an objective way of assessing and comparing progress at companies regarding this issue. A transparent evaluation of the situation is the first key step for facilitating an appropriate discussion on the subject.
(Symrise AG)

Newsgrafik #26126
 12.11.2012

Symrise: Sales and Earnings up 9 % in the First Nine Months  (Company news)

Picture: CEO Dr. Heinz-Jürgen Bertram

• Emerging Markets account for 48 % of sales for the first time
• EBITDA margin of 20 % despite persistently high raw material prices and start-up costs for menthol production
• Earnings per share rise to € 1.07

In the third quarter, Symrise AG successfully built on its dynamic performance from the first half of the year. In the first nine months of 2012, the Group generated sales of € 1,320 million (9M 2011: € 1,206 million), exceeding the previous year’s figure by 9 % (6 % at local currency). Both divisions provided strong impetus for growth. Symrise experienced above-average growth in the emerging markets, with Latin America performing particularly well. The Group also recorded considerable sales increases in Asia and North America. Symrise remained highly profitable despite high raw materials prices and start-up costs for its new menthol production plant. The Group increased its EBITDA by 9 % to € 264 million (9M 2011: € 243 million) and achieved an EBITDA margin of 20 %.
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: “We achieved considerable increases in sales and earnings throughout the Group in the first nine months of this year. The emerging markets provided particularly strong impetus for growth and accounted for 48 % of sales for the very first time. In terms of earnings, we coped well with a number of anticipated one-off expenses. For the remaining weeks of 2012, we continue to remain confident, although the sovereign debt crisis is having a growing impact on both, the European and also the global economy. However, with our balanced portfolio of customer groups and products, as well as our regional presence, we are, in an excellent position to make good progress even during economically weaker phases. We therefore confirm our targets for the fiscal year of 2012. We will continue to pursue our strategy which aims at sustainable, profitable growth.”

Strong Growth in Group Sales
Symrise increased its sales by 9 % to € 1,320 million in the first nine months of 2012 (9M 2011: € 1,206 million). Both divisions significantly contributed towards this increase. In the third quarter, the Group succeeded in increasing sales by 14 % (9 % at local currency) to € 448 million, compared to € 395 million in the same quarter of the previous year.
With a 20 % sales increase (21 % at local currency) Latin America provided the Group’s strongest growth in the reporting period. Developments in the Asia/Pacific region were also positive, allowing Symrise to boost its sales there by 15 % (8 % at local currency). In North America sales were up 19 % (8 % at local currency). Economic caution influenced sales in the Western European countries of the EAME region as a result of the European sovereign debt crisis. However, positive impetus came from Eastern Europe, Russia and Africa. Compared to the prior year period, sales were slightly up by 1 % (1 % at local currency).

EBITDA Margin of 20 %
Symrise increased its EBITDA by 9 % in the first nine months to € 264 million (9M 2011: € 243 million). Raw material costs remained on an overall high level. As expected, the Group also had start-up costs for the new menthol production plant in Holzminden, Despite these factors, Symrise successfully maintained its profitability and posted an EBITDA margin of 20 % for the reporting period (9M 2011: 20.1 %).
Net income rose by 7 % compared to the first nine months of 2012 to € 126 million (9M 2011: € 117 million). Earnings per share rose by 8 cents to € 1.07 (9M 2011: € 0.99).

Cash Flow from Operating Activities above Last Year’s Level
Due to positive business developments the cash flow from operating activities increased from € 130 million in the previous year to € 138 million in the reporting period. The Group has the necessary liquidity and financial strength to fully implement its strategy. The ratio of net debt (incl. pension provisions) to EBITDA fell to 2.1 (December 31, 2011: 2.2).

Sales Share from Emerging Markets Reaches a New High of 48 %
During the first three quarters, Symrise continued to expand its strong market position in the emerging markets. With a sales increase of 11 % at local currency, Symrise outperformed the Group’s average growth rate in these regions. The company experienced particularly strong demand in Latin America, China, Russia and the Middle East. The share of sales generated in the emerging markets increased by two percentage points compared to the first nine months of 2011 and reached the 48 % mark for the first time (9M 2011: 46 %).

Strong Growth with Large Global Customers
Symrise has a balanced portfolio of small-scale local, medium-sized regional and large global customers. Global producers of food and consumer goods form a strategic focal point within the customer groups. Symrise increased its sales with its global customers by 11 % at local currency, outperforming the Group’s total growth rate. Both divisions further expanded their business with global customers. Scent & Care reported a 12 % increase in sales at local currency. Flavor & Nutrition grew sales with global customers by 9 %. Overall, business with major international customers accounted for 32 % of sales in the reporting period (9M 2011: 31 %).

Scent & Care
The Scent & Care division posted sales of € 671 million for the first nine months (9M 2011: € 610 million) – a 10 % increase on the previous year’s figure. At local currency, sales were up 7 %. Scent & Care particularly continued rapid growth in the Life Essentials, Oral Care and Fine Fragrances application areas.
Latin America was by far the strongest region, realizing a 32 % sales increase at local currency. Scent & Care posted double-digit growth rates in all application areas. North America was the second strongest region, generating a sales growth of 9 % at local currency. Business with global customers was primarily responsible for driving this growth. Sales in Asia/Pacific rose by 7 % at local currency compared to the prior year period. This growth was mainly driven by high demand in Household, Oral Care and Cosmetic Ingredients. Despite positive impetus from Africa and Eastern Europe sales fell by 3 % at local currency in the EAME region due to the European sovereign debt crisis.
Scent & Care increased its EBITDA in the reporting period by 5 % to € 124 mil-lion (9M 2011: € 117 million). Despite start-up costs for the new menthol plant and high raw materials costs, the EBITDA margin remained on a good level at 18.4 % (9M 2011: 19.2 %).

Flavor & Nutrition
Flavor & Nutrition grew its sales by 9 % in the first nine months to € 649 million (9M 2011: € 597 million). At local currency, this corresponded to a growth of 5 %. The division was able to boost its sales in all regions.
The Asia/Pacific and North America regions were responsible for the strongest growth in the division’s sales (8 % each at local currency). Beverages and savory applications, in particular, generated pleasing growth in the Asia/Pacific region. In North America, Flavor & Nutrition recorded growth in the upper single-digit to double-digit percentage range in all application areas. In Latin America, Flavor & Nutrition expanded its sales by 5 % at local currency, with Brazil, Argentina and Chile showing the strongest growth. Sales climbed by 4 % at local currency in EAME, driven primarily by substantial double-digit growth rates in Russia. By contrast, demand in Western European markets was noticeably weak due to the sovereign debt crisis.
Flavor & Nutrition improved its EBITDA by 12 % in the first nine months to € 141 million (9M 2011: € 125 million). At 21.7 %, the EBITDA margin exceeded the prior year figure (9M 2011: 21.0 %).

Expectations for the Full Year Confirmed
In the third quarter, an economic slowdown emerged in many economic regions which will continue in the fourth quarter. Despite this current uncertainty, Symrise is confident to reach its targets for the full year. The Group aims at a sales growth of between 3 % and 5 % at local currency and at an EBITDA margin of around 20 %. Symrise has two strong divisions, a balanced customer base, an innovative and diversified product portfolio and is geographically very well diversified. This places the Group in a very good position to continue its sustainable growth.
(Symrise AG)

Newsgrafik #25816
 23.08.2012

Symrise AG Increases Sales and EBITDA by 7 % in the First Half of the Year  (Company news)

Photo: CEO Dr. Heinz-Jürgen Bertram

• EBITDA margin of 20 % despite ongoing high raw material prices
• Share of sales from Emerging Markets up to 47 %
• Earnings per share rise to € 0.71
• Outlook for the full year confirmed

Symrise AG benefited from a further rising demand in both segments during the second quarter of 2012. The Group thus increased sales by 7 % in the first half of the year, to € 872 million (H1 2011: € 812 million). The dynamics in Emerging Markets, especially Latin America, as well as positive developments in North America played a particular role. Business with global key customers was also a source of positive momentum. EBITDA increased by 7 % to € 174.0 million (H1 2011: € 162.5 million) despite ongoing high raw material costs.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG, commented: “We continued to gain momentum in the second quarter and benefited from a considerable rise in demand in both, the Emerging Markets and established markets. Once again, Symrise achieved an EBITDA margin of 20 %. This is a notable achievement considering the impacts from high raw material and energy prices as well as ramp-up costs for our new menthol plant. Although many questions remain surrounding the development of the eurozone, we expect further growth in the second half of the year. We are well-positioned internationally and enjoy a broad customer base. Additional growth is expected from our new menthol production plant which has been operating since the end of June. We therefore confirm our raised outlook from May and are aiming for sales growth at local currency between 3 % and 5 % for the full year.”

Symrise Enjoys Strong Second Quarter
Symrise generated sales of € 871.6 million in the first half of 2012 (H1 2011: € 811.8 million). This represents an increase of 7 % (4 % at local currency). This development was particularly driven by the second quarter when the Group boosted sales by 11 % to € 438.9 million (Q2 2011: € 395.0 million).
North America performed especially well in the first half with sales up 19 % (10 % at local currency). Latin America also posted disproportionately positive growth with a sales increase of 18 % (18 % at local currency). Sales in the Asia/Pacific region were up 11 % (4 % at local currency) while sales remained stable in the EAME region despite economic uncertainties in Southern European markets.

EBITDA Margin of 20.0 %
Symrise improved its earnings before interest, tax and depreciation (EBITDA) by 7 % in the first half to € 174 million (H1 2011: € 163 million). The cost situation remained characterized by persistently high raw material and energy costs. Ramp-up costs for the expansion of Symrise’s menthol capacities in Holzminden also had an effect in the first half. Despite these costs, the Group managed to achieve an EBITDA margin of 20 % (H1 2011: 20 %) and kept profitability at a sustainable high level.
Net income for the period rose by 8 % to € 84 million (H1 2011: € 77 million). Earnings per share increased by 6 cents to € 0.71 after € 0.65 last year.
Cash Flow from Operating Activities Nearly Doubles at € 62.5 Million
Cash flow from operating activities amounted to € 63 million, substantially higher than in the previous year (H1 2011: € 34 million). The company has the necessary liquidity and financial strength to fully implement the Group’s strategy. The ratio of net debt incl. pension provisions to EBITDA remained, despite the distribution of dividends for 2011, nearly constant with last year’s period at 2.3.

Share of Sales from Emerging Markets Increases to 47 %
The Group’s strong position in Emerging Markets led to an increase in sales for these regions of 8 % at local currency. Thus, Symrise is growing nearly twice as fast in Emerging Markets than the Group as a whole. The Emerging Markets in Latin America were substantial growth drivers along with those in Eastern Europe, Russia and the Middle East. Latin America also benefited from growth initiatives implemented there. The share of Group sales generated in the Emerging Markets increased to 47 % in the first half after amounting to 46 % in the first half of 2011.

Above Average Growth with Global Customers
Symrise has a balanced portfolio of local, regional and global customers. The first half of 2012 continued to deliver especially positive results in business with internationally active key customers. Sales with this customer group increased 11 % at local currency and therefore exceeded the overall growth of the Group. Business with top 10 customers was especially strong in the Scent & Care division with an increase of 13 % at local currency. Sales with major customers rose 8 % at local currency in the Flavor & Nutrition division. Symrise generated 32 % of its overall sales with international key customers in the first half (H1 2011: 30 %).

Scent & Care Division
Scent & Care increased sales in the first six months of 2012 by 9 % (6 % at local currency) to € 444 million (H1 2011: € 410 million). The application areas Oral Care, Fragrances and Life Essentials were the top contributors to this result, each posting double-digit growth rates.
With a 29 % jump in sales at local currency, Latin America was the strongest growth driver in the division. The Oral Care business unit played a leading role in this development with substantial growth in sales. In Fragrance, a number of new businesses also made a notable positive impact. North America was the second strongest region, generating sales growth of 9 %. Also in this region, the Oral Care business unit was the clear growth driver posting strong sales growth, particularly with key customers. Continuing uncertainties regarding the sovereign debt crisis led to reserved sales performance in the EAME region. Despite the positive impulses from the Emerging Markets in Africa as well as solid growth in the Fine Fragrances and Personal Care application areas, sales were down 4 % at local currency compared to the first half of 2011. The Asia/Pacific region saw sales up 7 % at local currency and generated double-digit growth rates in the Household, Oral Care and Cosmetic Ingredients application areas.
Scent & Care increased its EBITDA in the first half by 5 % to € 81 million (H1 2011: € 77 million) despite ramp-up costs for the expanded menthol production. The EBITDA margin for the segment amounted to 18.2 % (H1 2011: 18.8 %).

Flavor & Nutrition Division
Flavor & Nutrition increased sales by 6 % in the first half to € 427 million (H1 2011: € 402 million). At local currency, this corresponded to an increase of 3 %. The division benefited particularly from its activities in the Emerging Markets, favorable core-list positions and from additional new business gained with regional and international customers.
Flavor & Nutrition achieved the strongest growth in North America with sales up 12 %. Every application area contributed to this positive development, with sales increases in the high single-digit and double-digit ranges. Sales were up 3 % at local currency in the EAME region. The main growth driver was Russia with a double-digit growth rate, while the sovereign debt crisis continued to have a notable effect on Western European markets. Sales growth was restrained in the Asia/Pacific region, up 1 %. In Latin America, Flavor & Nutrition increased its sales by 2 % at local currency.
Flavor & Nutrition improved its EBITDA by 9 % in the first half to € 93 million (H1 2011: € 86 million). The EBITDA margin remained at an excellent level with 21.8 % compared to 21.3 % in the prior-year period.

Outlook for the Full Year – Objectives Confirmed
Symrise remains confident of a good second half despite continuing uncertainties surrounding the European sovereign debt crisis. The Group has a balanced business: it is geographically well positioned and operates with two nearly identically sized divisions; in addition it has a broad customer base. Following the positive developments of the first half of 2012, Symrise confirms its increased outlook from May and continues to aim for sales growth between 3 % and 5 %. Further growth is expected in both Emerging Markets as well as industrialized nations although in Western Europe this is expected to be reserved due to the sovereign debt crisis. Symrise also continues to focus on its approach to realize sustainable, profitable growth and aims to achieve an EBITDA margin of about 20 %, despite persistently high raw material and energy prices.
(Symrise AG)

Newsgrafik #25505
 22.05.2012

Symrise Starts Fiscal Year with Robust Sales Growth  (Company news)

Photo: Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG

• Sales rise 4% to €433 million
• EBITDA margin of 20.1% despite higher raw material costs
• Sales with global customers up 10%
• Symrise raises sales forecast for Fiscal Year 2012

Symrise AG has enjoyed a strong start to the 2012 fiscal year. The Group posted robust sales growth and achieved the targeted EBITDA margin of 20% despite higher raw material brightening costs. Over the course of the quarter, Symrise benefited from improving market conditions and as a result saw a stronger demand for its products. Compared to the prior-year quarter sales rose 4% to €432.6 million (Q1 2011: €416.8 million). This development was driven in large part by the disproportionate growth seen in business with global customers. North and Latin America also provided notable growth impetus.
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: “Symrise is off to a solid start for the current fiscal year. After the subdued development at the beginning of this year, the market environment improved faster than originally anticipated. Our business with global customers has grown especially rapid. In addition, we maintained our profitability at our targeted margin level of 20% despite high raw material costs. We also expanded our market presence with targeted acquisitions and strengthened our focus on innovation in fast growing market segments. In view of the positive developments seen in this quarter, we are raising our sales outlook for the current financial year.”

Sales up 4%
Symrise generated sales of €432.6 million during the first quarter of 2012 (Q1 2011: €416.8 million). After a reserved start to 2012, economic development brightened over the course of the first quarter, particularly in March, and stimulated a positive boost to demand. With an increase of 4% (2% at local currency), the Group has laid the foundation for further growth over the course of the year.
Latin America continued its positive development, achieving a sales increase of 10% (10% at local currency). Particularly Oral Care, Sweet and Beverage application areas contributed to this growth. Business in North America significantly recovered, posting sales growth of 13% (9% at local currency). This was mainly supported by high demand in Life Essentials and Oral Care. Sales in Asia/Pacific were up 5% (1% at local currency). The individual segments developed very favorably in this region. Sales in the EAME region decreased by 2% against the prior-year quarter (-2% at local currency). A positive development in Fine Fragrances could not fully compensate for the lower demand in the UV Protection and in Aroma Molecules.

EBITDA margin of 20.1% achieved
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 2% to €87.0 million (Q1 2011: €85.2 million) in the reporting period. Along with higher energy costs, the ongoing volatility of raw material prices influenced the result. In addition to the steep rise of the oil price, the first quarter also saw selective price increases for other raw materials. Symrise benefited from its backwards integration with important raw materials which will be further expanded with the nearly finished addition of production capacities for Menthol. Despite these impacts on the cost side, the Group was able to keep profitability above its target mark with an EBITDA margin of 20.1% (Q1 2011: 20.5%).
Net income for the period amounted to €43 million corresponding to a 3% increase on the prior-year quarter (Q1 2011: €41 million). Symrise slightly increased its earnings per share to €0.36 (Q1 2011: €0.35).

22.08.2011

Symrise achieves EBITDA margin of 20%  (Company news)

Interim report for the 1st half of 2011
• Group sales rise by about 3 % at local currency
• Business with top 10 customers and Emerging Markets supports growth
• Currency effects and high raw material prices affect earnings
• Outlook for 2011: Target EBITDA margin of 20 %

Symrise AG increased sales and maintained profitability at a high level in the first half of 2011. The Group increased sales by about 3 % at local currency despite the strong comparables from the previous year; it benefited from business with major customers and Emerging Markets. However, the market environment turned gloomy in certain segments and regions in the second quarter. Earnings were affected by high raw material costs and negative currency effects. Nonetheless Symrise achieved an EBITDA margin of 20 %. The primary contributors were persistent cost management and the conscious divestment of less profitable businesses.
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: “Following the enormous catch-up effect during the previous year and a good first quarter, market growth slowed in the recent months. Whereas the flavor business continued to grow, the demand for fragrances declined. Nonetheless, Symrise continued to grow throughout the first half of the year. We achieved the targeted EBITDA margin of 20 %. We consider this to be a respectable achievement in view of the continually high raw material prices and unfavorable exchange rate effects.”
Bertram added: “Our statement from the first quarter that consumer spending is being affected by uncertainties on global markets still holds true. Despite the somewhat subdued outlook we are striving to achieve sales growth of around 3 % and an EBITDA margin of 20 % for the full year 2011. The fundamental drivers of our business will remain intact in the mid-term. We are therefore continuing to pursue our strategy of focusing on innovation, Emerging Markets and major customers.”

Continued above-average growth in Emerging Markets
In the first six months of the current financial year Symrise posted an increase in Group revenues of approximately 2 % to € 811.8 million (previous year: € 797.5 million). The sales increase was 2.6 % at local currency. The Asia/Pacific region exhibited the strongest growth followed by Latin America and EAME. Emerging Markets did not continue their extraordinarily high growth rate of the previous year, but continued to grow above average in H1. Sales generated in Emerging Markets as a whole rose 4 % and accounted for 46 % of Group sales.
The Asia/Pacific region reported 5 % sales plus (4 % at local currency). Both divisions benefited from continuous high demand. Latin America, which grew quite strongly during the prior year period, continued to grow but at a more moderate rate. This region achieved a 4 % sales increase (4 % at local currency). Sales in EAME rose 3 % (3 % at local currency), whereby business in Western Europe made a strong contribution. North American sales declined 7 % over the strong results of the previous year, primarily due to the slower economy and significant currency effects. At local currency, revenues declined by 2 %.

Both divisions grew business with major customers
The strategic focus on business with internationally active food and consumer goods companies in the first half of the year paid off again. Both divisions benefited from their good core list positions; and grew business with top ten customers above average: Flavor & Nutrition realized top 10 customer sales growth of 6.5% and Scent & Care of 3.4 %. In the first six months 2011 Symrise generated about 30 % of Group sales from business with its major customers.

Strong profitability despite pressure from raw material costs and currency effects
In the first half of the year Symrise’s earnings picture was primarily affected by high raw material costs and currency effects. Initial price increases helped to compensate for these negative factors and Symrise nonetheless met its EBITDA margin target of 20 % (previous year: 22.3 %). Persistent cost management and focus on business with attractive margins significantly contributed to keep profitability at a high level. In absolute terms, earnings before interest, tax, depreciation and amortization (EBITDA) declined by 8.6 % to € 162.5 million (previous year: € 177.7 million).
Net income for the period amounted to € 77.4 million (previous year: € 88.8 million). This corresponds to earnings per share of € 0.65 (previous year: € 0.75).

Strategic raw material inventory give more planning security
In the first half of 2011 Symrise temporarily built up inventory of raw materials in a move to cushion price increases and shortages of certain raw materials. The Group believes that increased inventory levels will give significantly more planning security in the second half of the year. Despite increased working capital requirements Symrise generated a positive cash flow from operating activities of € 34 million (previous year: € 74.7 million).
The Group’s net debt (incl. pension provisions) as of June 30, 2011 was € 798.8 million (December 31, 2010: € 733.7 million). The ratio of net debt (incl. pension provisions) to EBITDA amounted to 2.5 at the end of the reporting period (December 31, 2010: 2.2).

Scent & Care
Scent & Care generated sales of € 409.5 million in the first half of the year (previous year: € 411.9 million). The division’s sales remained largely stable even in comparison to the strong catch-up effect that characterized the previous year and despite the divestment of less profitable businesses. At local currency sales slightly rose by 0.3 %.
The application segments Life Essentials and Aroma Molecules continued their positive development, especially in the area of fragrance ingredients. The menthol business of Scent & Care enjoyed double-digit growth. The Group has made significant investments and is currently expanding production capacity here. In the application area Fine Fragrances demand developed positively in Emerging Markets.
Latin America remained the fastest-growing region for Scent & Care with a sales increase of 5 % at local currency. In Asia/Pacific and North America sales rose 1 % at local currency. Sales in the EAME region declined 2 % at local currency over the extraordinarily strong previous year.
The division reported an EBITDA of € 76.9 million (2010: € 85.5 million) for the first half of the year. The EBITDA margin was 18.8 % (previous year: 20.7 %).

Flavor & Nutrition
Flavor & Nutrition continued its growth path in the first half of 2011 with a 4 % sales increase to € 402.3 million (previous year: € 385.6 million). This corresponds to 5 % at local currency.
Flavor & Nutrition posted the largest sales increase of 8 % (at local currency) in the EAME region. Here Symrise benefited from the high demand in all national markets. Beverage applications in particular developed positively as did the new application segment Consumer Health. Asia/Pacific was the second strongest region with sales growing by 7 % at local currency. In Latin America Flavor & Nutrition increased sales by 3 % at local currency despite the strong previous year figures. In North America the slow economic environment and customer procurement delays led to a sales decline of 6 % at local currency.
The EBITDA amounted to € 85.6 million (previous year: € 92.2 million). The profitability of the division remained at a high level with an EBITDA margin of 21.3 % (previous year: 23.9 %).

Outlook: Symrise continues to target an EBITDA margin of around 20 %
Following the more restrained business development in the second quarter, Symrise anticipates that the business in the coming months will continue to be influenced by macroeconomic uncertainties such as the debt crises in Europe and the USA, inflationary tendencies and growing interest rates in Emerging Markets. This could lead to greater volatility with respect to demand.
Nonetheless, Symrise is targeting sales growth of around 3 % for the current year. Stable growth in the Flavor & Nutrition division is expected to be a primary contributor here, while the Scent & Care division is not expected to experience any noteworthy growth in 2011 for reasons which include the conscious divestment of less profitable businesses.
Symrise wants to remain amongst the most profitable companies in the sector and therefore targets an EBITDA margin of around 20 % for the current financial year. Symrise anticipates that raw material prices will remain at a high level and that exchange rates will continue to be volatile in the second half of the year. Approved price increases and persistent cost discipline should support Symrise in achieving its objectives for fiscal year 2011.
(Symrise AG)

14.03.2011

2010 Annual Results: Symrise Beats 2010 Sales and Earnings Goals  (Company news)

• Group sales up 15.4 % at € 1.57 billion
• EBITDA margin rises to 21.1 %
• Refinancing successfully concluded. Basis set for further profitable growth
• EPS € 1.13 (+58 %), significantly increased dividend to € 0.60 per share

Symrise AG has exceeded its sales and earnings goals for Fiscal Year 2010. The Group benefited from the global economic recovery and strong boost in demand, as well as the excellent positioning in emerging markets and in the business with large customers. Symrise increased sales by 15.4 % to € 1.57 billion and exceeded its target to achieve sales growth of at least 8 %. The EBITDA margin rose to 21.1 % and bet the aspired mark of more than 20 %. On another positive note, Symrise succeeded in further reducing its net debt thanks to operating cash flow being at a high level again.
“We capitalized on the strong tailwind of the economic recovery and ran our utilization at very high levels the whole year round,” said Symrise AG Chief Executive Officer, Dr. Heinz-Jürgen Bertram. “Besides continued strong growth in emerging markets, we benefited from a strong revival in demand in Western Europe and other established markets. This resulted in record growth of over 15 %, with double-digit sales increases in all regions and in both divisions. With an EBITDA margin of 21.1 % we have operated on a very profitable basis. We would like our shareholders to participate in this success and are proposing a 20 % dividend increase to € 0.60 per share.”
“In Fiscal Year 2010 we systematically continued to implement our proven strategy: Our innovative business units such as Life Essentials and Consumer Health launched new products which pick up on consumers’ needs for a balanced diet and healthy lifestyle. Our traditional flavor & fragrance business has been extended by significant investments, including a two-fold increase in our menthol production capacity. In 2011 we will continue to focus on sharpening our specific profile.”
With a view to 2011, Heinz-Jürgen Bertram continued: “We’re optimistic about the current financial year and have set ourselves the goals of again outperforming market growth and winning market shares. At the same time, we do remain realistic: Following the outstanding year 2010 which was also driven by economic backlogs we are expecting more moderate growth for 2011. In this context the course of the crisis in the Middle East plays a role; another determining factor will be the oil price development which is difficult to predict and its influence on consumer behavior. At the same time we expect raw material prices to be one of the main challenges which we will keep a close eye on. Since this already became apparent in the middle of 2010, we implemented initiatives at an early stage: we expanded our backward integration of our supply chain, entered price negotiations with our customers and continued our consequent cost discipline. We are therefore sticking to our aspiration of permanently being one of the most profitable companies of our sector, and working on the basis of a sustained EBITDA margin of above 20 %.”

15 % rise in sales – double digit growth in all regions
Fiscal Year 2010 Group sales rose 15.4 % (11 % at local currency) to € 1,571.9 million (2009: € 1,362.0 million). The Group benefited from both, a rebound in customer confidence in its established markets, as well as continued strong consumption in emerging markets.
Asia/Pacific was again the fastest growing region with 21 % sales growth (11 % at local currency). All application areas developed positively there, with demand for cosmetic ingredients, fine fragrances and aroma molecules rising particularly strong. Latin America was able to build on the previous year’s dynamic trend and – despite high comparables – generated 18 % sales growth (12 % at local currency). North America successfully returned to the growth path and reported a 16 % sales growth (10 % at local currency). EAME, which includes Europe, Africa and the Middle East, also benefited considerably from the economic recovery. Demand in the application areas Fine Fragrances and Personal Care rose particularly strongly here, contributing to an overall sales growth of 12 % (11 % at local currency) in the region.

Emerging markets account for 46 % of Group sales
The growth seen in 2009 in emerging markets continued unbowed in 2010, with sales rising 13 % in these markets. Overall, Symrise generated 46 % of Group sales in emerging markets. Symrise expanded its footprint in these regions with the inauguration of a production site in Moscow, the integration of Futura Labs – acquired at the start of the year – in the Middle East and North Africa, and the opening of the first academy for perfumers in India.

14 % increase in business with large customers
Business with multinational food and consumer goods manufacturers remained a key strategic focus: Symrise won further core list positions with large customers and augmented existing listings with additional projects in 2010. Group sales realized through business with Top 10 customers rose 14 % at local currency. Overall, activities with this customer group which is strategically particularly important, accounted for around 30 % of Group sales.
Flavor & Nutrition boosted sales with Top 10 customers by 15 % at local currency and achieved strong growth in all application areas and regions. Scent & Care increased sales with Top 10 customers by 13 % at local currency, benefiting particularly from the expansion of the business in the USA.

35 % rise in EBITDA – EBITDA margin at 21.1 % at a high level
After € 245.6 million in 2009, Symrise reported 2010 earnings before interest, tax, depreciation and amortization (EBITDA) of € 331.2 million. This 35 % increase was attributable to strong sales growth, high utilization and consequent cost management. Despite sharp rises in individual raw material prices in the third and fourth quarters, the overall raw material costs were kept stable over the full year. Symrise benefited from a number of factors including backward integration in the purchasing of key raw materials such as vanilla, as well as from relatively favorable conditions which had been secured early on.
The Group’s EBITDA margin improved to 21.1 % (2009: 18.0 %) thereby exceeding the company’s target of achieving an EBITDA margin of more than 20 %. Net income went up 58.4 % to € 133.5 million (2009: € 84.3 million). Earnings per share rose accordingly to € 1.13 from € 0.71 in 2009.

Year on year operating cash flow rises despite higher working capital
Although working capital went up as a consequence of the high utilization levels, Symrise succeeded in increasing its operating cash flow to € 235.1 million (2009: € 225.7 million). The ratio of net debt including pension provisions to EBITDA fell from 3.1 at year end 2009 to 2.2 at December 31, 2010, thereby fulfilling the aspired target.
In the fourth quarter of 2010, Symrise arranged a comprehensive refinancing and aimed at an early redemption of existing debt in the amount of € 621 million; this net debt was originally due at the end of 2011. Besides a long term loan of US$ 175 million from US investor Prudential (Pricoa), Symrise was able to raise € 300 million on the capital markets through an inaugural bond issue. The Group finalized the refinancing in December with the conclusion of a € 300 million revolving credit line and now operates on the basis of a longer-term oriented financial structure which is more diversified in terms of its maturity profiles and financing sources.

Scent & Care – 48 % rise in EBITDA
Scent & Care reported double digit growth rates for all application areas and regions and increased sales by 18 % (12 % at local currency) to € 805 million (2009: € 682 million). The strong performance was driven particularly by the Personal Care and Fine Fragrances units. Fine Fragrances clearly benefited most from the economic rebound and the improved consumer sentiment; the unit achieved the highest growth within the division.
During 2010, Scent & Care launched new products in all application areas, including new ingredients for anti-aging creams in the Life Essentials application area. The division also realized two major strategic investment projects with the inauguration of two new mixing and dosing facilities for perfume oils and the start of the expansion of its menthol production facilities.
Scent & Care enjoyed particularly strong growth in both, North America and EAME: both markets benefited from the returned demand for Fine Fragrances and Oral Care Products, with each reporting 13 % growth in sales at local currency. Asia/Pacific also grew very dynamically with 12 % growth in sales at local currency and was able to exploit strong consumer demand for cosmetic ingredients, UV filters and Fine and Special Fragrances. In Latin America sales also developed positively, however, the growth rate of 10 % was more moderate because of the exceptionally strong figures in 2009.
Scent & Care increased EBITDA by 48 % to € 161 million (2009: € 109 million); EBIDTA margin of the division went up to 20.0 % (2009: 16.0 %).

Flavor & Nutrition – 22.2 % EBITDA margin
The Flavor & Nutrition division also grew positively in all application areas. Sales rose 13 % (10 % at local currency) to € 767 million (2009: € 680 million). Growth was particularly driven by high demand in the beverage area, as well as by business with Top 10 customers.
Business was most dynamic in Latin America, where Flavor & Nutrition sales rose 15 % at local currency. Growth was also strong in Asia/Pacific and EAME, both of which reported 10 % sales growth at local currency. In Asia/Pacific, Symrise’s global initiative “Naturally Citrus” provided for strong growth, especially in its beverages applications. Growth in the EAME region was driven by the established Western European markets as well as by Eastern Europe and the Gulf region. High demand in Russia confirmed Symrise’s decision to expand its footprint in this market. Symrise had acquired an existing facility from the Russian Aromaros-M group at the beginning of 2010, which it subsequently expanded and took into operation in December. In North America, Flavor & Nutrition sales grew 7 % at local currency. In doing so, the business benefited particularly from activities with major customers which were further expanded by a new core listing in June.
Flavor & Nutrition EBITDA rose 25 % to € 170 million (2009: € 137 million). With the EBITDA margin increasing to 22.2 % (2009: 20.1 %) the division was able to improve its already high profitability further.

Outlook
We are convinced of our strategy: The focus on our strong position in Emerging Markets, our innovative business units Life Essentials and Consumer Care, as well as the expansion of our business with major customers have been the basis of our success in 2010 and will support our successful development in 2011.
For the current financial year, Symrise is confident that both divisions, Scent & Care and Flavor & Nutrition, will both outperform the overall market for flavors and fragrances and expand their market share. The Group aims at increasing sales by 3 to 5 % at local currency and is projecting an EBITDA margin of more than 20 % for 2011. (Symrise AG)

22.09.2010

The Focus is on Taste:   (Company news)

• Further Development of the taste for life® Strategic Platform
• Even closer Orientation to Consumer Preferences
• Focus on Health and Pleasure

What do consumers want today? And what does the industry need in order to fulfill these desires? Symrise provides the answers with the new taste for life® strategic taste platform: it offers the food and beverage industry an innovative framework to develop new products more rapidly and tailor them to market needs.
Consumer preferences are not only changing more rapidly than ever before, they are also becoming increasingly versatile. With respect to lifestyle and nutrition this means that today’s consumers are longing for a balance between holistic health and pure pleasure, which are by no means mutually exclusive.
With taste for life® Symrise helps its customers to position their brands and products in this middle ground. taste for life® highlights which trends and consumer needs the industry is serving with its brands, where there are gaps in the product portfolio, where the competition is positioning itself, where line extensions would make sense, and much more.
In the process, Symrise’s core competence is at the focus of attention: taste – the aspect in which the consumer accepts no compromises. Cloe Croixmarie, EAME Marketing Director Flavor & Nutrition, explains: “taste for life® provides the conceptual framework for what a product should achieve. But whether the product promises health benefits or offers complete pleasure – it must always taste good.”
Heiner Schaper, President Flavor & Nutrition EAME, elaborates: “With taste for life® we are introducing an authentic change in perspective of our industry. We no longer speak first about molecules or technologies, but instead have the consumer in mind. We take the consumer’s perspective into account when de-signing our products and ask ourselves: how can our product innovations satisfy the preference of the end consumers and how can we align our products with the requirements and brands of our corporate customers? The industry needs not only service providers but also strong and creative partners for innovation. With taste for life® we are once again honoring this claim.”
The new taste for life® strategic platform is an evolution of the previous one which was introduced successfully in 2006 and emphasized on product solutions for health only. Now taste for life® encompasses all of Symrise’s taste so-lutions. It connects in a single branded platform the consumer desires, the requirements of the industry, and Symrise’s comprehensive and multifaceted competences and expertise. (Symrise AG)

10.08.2010

Expansion of Competency in Health Food Area: Symrise Founds Scientific Advisory Board ....  (Company news)

.... for Health and Nutrition

With the foundation of a new scientific advisory body, the international flavoring manufacturer Symrise is expanding its competencies in the area of health-oriented food.
The Scientific Advisory Board for Health and Nutrition is composed of internationally renowned scientists, who advise Symrise during the development of new ingredients for supplements and healthy and functional food products.
The external specialists provide Symrise researchers with support in implementing new scientific data as quickly as possible in actual products, and they also give the researchers support in developing new technologies.
In the Scent & Care division Symrise has already been working successfully for several years with its own Scientific Advisory Board, which advises the Group on the development of new ingredients for cosmetic products.
The members of the Scientific Advisory Board for Health and Nutrition are Prof. Dr. Gerhard Rogler, Professor for Gastroenterology and Hepatology at the UniversitätsSpital in Zurich, Prof. Dr. Christian Barth, long-standing Scientific Director of the German Institute of Human Nutrition (DIfE), as well as Prof. Dr. Ulrich Noehle, independent scientific consultant (previously CEO of Nordzucker and the Director of Nutritional Science, Food Legislation and Quality Management at Nestlé Germany).
“We are very pleased to have won such world-class experts as members of our new advisory board,” commented Dr. Simone Peschke, Head of the Symrise Competence Center for Health & Nutrition. “Their expertise in the areas of medicine, chemistry and nutrition ideally complement each other and will provide valuable stimuli for our research and development work.”
With the founding of the Scientific Advisory Board for Health and Nutrition, Symrise is continuing to expand its health & nutrition strategy as well as its competitive position.
As early as November of last year, the Company established the new global business unit Consumer Health. This unit is specialized exclusively on the development of functional ingredients and flavoring solutions for food supplements and health products. It is supported by the Symrise Competence Center for Health & Nutrition, which continually develops new, innovative biofunctional ingredients on the basis of scientifically proven effects and nutritional-physiological characteristics.
During the development of biofunctional ingredients, Symrise makes use of synergies in the area of flavoring development, for example with regard to the natural raw materials and technologies platforms used.
“In the functional foods and health products segment we are seeing strong growth, which is also having a long-term impact on the innovation pipelines of our customers,” explained Dirk Bennwitz, Senior Vice President of Consumer Health. “Together with our external advisors we aim to identify the nutritional needs of the consumers early on and respond to these with tailor-made products. Our goal is to target highly focused research and product development with the highest possible level of relevance for consumers and customers.”
Additional information on the members:
- Prof. Dr. Gerhard Rogler
Prof. Dr. Gerhard Rogler is a professor of gastroenterology and hepatology at the UniversitätsSpital in Zurich. After completing research activities at the University of California in San Diego, with a focus on cellular and molecular medicine, Prof. Dr. Rogler spent four years as a professor of gastroenterology and hepatology at the University of Regensburg. Concurrently to his medical training and activities as a practicing medical professional he also completed a doctorate in philosophy. He is an expert in the area of intestinal metabolism, pharmacokinetics, intestinal inflammation and gastrointestinal physiology.
- Prof. Dr. Christian Barth
Prof. Dr. Christian Barth was active as Scientific Director of the German Institute of Human Nutrition (DIfE) for nine years. After completing a degree in medicine in Heidelberg, a postdoctoral qualification in biochemistry and research studies on the subject of lipid metabolism at Rockefeller University in New York, he led a research group with a focus on cholesterol synthesis and lipid metabolism at the University of Munich. Following this, he acted as Director of the Institute for Nutritional Physiology and Biochemistry at the German Federal Institute for Dairy Research (Bundesanstalt für Milchforschung) in Kiel.
- Prof. Dr. Ulrich Noehle
Prof. Dr. Ulrich Noehle studied food chemistry at the Technische Universität Berlin. He worked for three years as Head of Product Development at Kraft, before being appointed to the Management Board at Nestlé, Hamburg. Later, Prof. Dr. Noehle became a member of the Nestlé Expert Group for International Food Legislation in Switzerland. After eight years as Director of Nutritional Science, Food Legislation and Quality Management at Nestlé Germany, he was subsequently active as the CEO of Nordzucker for four years. In addition to his current position as an independent and scientific consultant Prof. Dr. Noehle is also a professor of quality management at the Technische Universität Braunschweig. (Symrise AG)

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