Symrise posts encouraging half-year results across flavours and ingredients divisions
Flavours, ingredients and fragrance group Symrise has recorded strong first-half results for 2024, with sales up 6.3% to $2.5 billion, which it attributed to a strong focus on materials usage and wider business efficiencies, writes Neill Barston.
The company, which remains active in the confectionery and snacks segments noted that markets remained challenging on a global basis, noted that cost management had been vital in its strategy for forward momentum.
Its EBITDA earnings rose to € 530 million, an increase of 11.5% compared to the previous year’s adjusted figure, with an efficiency drive initiated in the first quarter that was implemented consistently in the second quarter and has already generated around 50% of the target savings of around €50 million.
Jean-Yves Parisot, Chief Executive Officer of Symrise AG commented: “Symrise is on course. I am committed to continuing Symrise’s success story – for the good of our customers, our shareholders and our employees. This is what we focused on in the past months. Despite our success in the first half of the year, we are not sitting back. Our good performance in recent months gives us confidence for the second half of the year. For this reason, we are therefore again confirming our growth and profitability targets for the full year.”
As the business noted, despite the current volatile market environment as a result of geopolitical tensions and continued high inflation overall, Symrise is well-positioned to continue on its profitable growth path. In this respect, the company is benefiting from its robust and sustainable business model, diversified application portfolio and broad regional presence and customer base.
Furthermore, the business is targeting sales growth of between 5 and 7% (organic) in 2024. In terms of profitability, it is seeking to achieve an EBITDA margin of around 20 %. For the business free cash flow, the Group is aiming for a rate relative to sales of 12% in 2024. Symrise will also maintain strict cost awareness in the context of its ongoing efficiency program.
In the long term, the company aims to increase its sales to €7.5 to 8.0 billion by 2028. Annual growth of 5 to 7 % (CAGR) as well as targeted acquisitions are expected to contribute to this. Profitability (EBITDA margin) should remain within a target corridor of 20 to 23%.
Taste, Nutrition & Health segment
Taste, Nutrition & Health achieved organic sales growth of 10% in the first half of 2024. Taking into account portfolio and exchange rate effects, the segment’s sales in the reporting currency amounted to € 1,572 million, an increase of 2.9% (H1 2023: €1,527 million). The portfolio effect from the 2024 divestment of the UK beverage trading business by the Food & Beverage division had a negative impact of € 16 million on sales development.
In the Food & Beverage division, demand for savoury products particularly developed strongly to deliver double-digit organic growth. Strong growth was recorded in the EAME (Europe, Africa, Middle East) and Latin America regions especially. The Naturals business unit and the business units for sweet products and beverage flavoring achieved low single-digit percentage growth and recorded gains in the North America and Asia/Pacific regions especially.
