Symrise Group reports strong numbers
The 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.
Resilient and balanced business model
“The Covid-19 pandemic is proving a tough test for the global economy. We have 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.
Confident for the current fiscal year
The company 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. The gorup expects that the Covid-19 crisis will temporarily change consumer behaviour 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, the company 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.