Symrise reports organic growth of 10.5 % in the first quarter
Symrise Group has dynamically started into the new business year and increased its sales organically by 10.5 % in the first quarter of 2021. Taking account of negative currency translation effects, sales rose by 3.5 % to € 949.6 million (Q1 2020: € 917.1 million) compared to the prior-year period. In spite of the global coronavirus pandemic, all segments recorded strong demand and achieved high organic growth. Sales for the first quarter also reflected catch-up effects resulting from delivery backlogs caused by the cyber-attack in December.
“Our group has started very well into the first quarter of 2021. The order activities of our customers continued to be defined by the global coronavirus pandemic. We therefore again recorded particularly high demand for applications for hygiene and oral care products, cooking at home products as well as for pet food solutions. In the first quarter of this year, we also processed the order backlog that resulted from the criminal cyber-attack last December. Furthermore, we have completely reinstated our IT systems which are fully operational again. We see ourselves very well positioned for the coming months,” said Dr. Heinz Jürgen Bertram, CEO of Symrise AG. “Battling the pandemic will continue to define everyday lives as well as economic conditions in 2021. However, we expect that the increasing vaccination rates will support the economic recovery. We expect continued reliable demand and will continue to drive forward our growth initiatives. We aim at organic growth of 5 to 7 % for the current fiscal year.”
Scent & Care with good demand for care and hygiene products, and cosmetic ingredients
Scent & Care, the business with fragrances, aroma molecules and cosmetic ingredients, generated sales of € 373.2 million and grew organically by 8.3 % (Q1 2020: € 368.4 million). Taking negative currency translation effects into account, sales in reporting currency increased by 1.3 %. Sales in the fragrance division developed very pleasingly and resulted in organic growth in the double-digit percentage range. The main growth drivers were the consumer fragrance and oral care business units. Consumer fragrance increased revenues particularly in the regions North and Latin America and Asia/Pacific. Oral care reported the biggest growth in EAME (Europe, Africa, Middle East) and Asia/Pacific. The fine fragrances business unit, with perfumes in the luxury segment, was most affected by the coronavirus pandemic in the course of 2020. However, over recent months, it performed well and recorded a steady recovery.
During the first quarter of 2021, sales in the Aroma Molecules division were slightly below the prior-year quarter, primarily caused by lower demand for fragrances. Conversely, positive momentum came from the menthols division, which generated double-digit percentage growth. Asia/Pacific and EAME regions achieved the highest growth here. Sales in the Cosmetic Ingredients division developed very positively in the first quarter of the current year with organic growth in the double-digit percentage range. All regions and application areas contributed to this advance. Sun protection products were the only application area which continued to reflect the consequences of the global travel restrictions owing to the coronavirus pandemic.
Confidence or the current fiscal year
In spite of the ongoing global coronavirus pandemic, the company continues to be fully operational and retains full delivery capability. With its global presence, the continually growing and diversified portfolio and its broad customer base, the company considers itself to be robust and solidly positioned also in the current challenging market environment. On 1 April 2021, the company successfully closed the acquisition of the fragrance and aroma chemicals business from Sensient. This acquisition enables the group to strengthen its backward integration for renewable raw materials and strengthens its leading position as a provider of fragrance and aroma chemicals for application in body care and household products. The company will deploy targeted investments at the new location in Granada and expand its future production in Spain.
The group assumes that the global economy will recover with improved methods to combat the pandemic. The company is targeting organic sales growth of 5 to 7 % for 2021. The company would thus again grow significantly faster than the relevant market for flavors and fragrances. Furthermore, the medium-term goals up until the end of 2025 remain unchanged. Symrise intends to increase sales to between € 5.5 and 6 billion. This increase is to be achieved through annual organic growth of 5 to 7 % (CAGR) and additional targeted acquisitions.