Symrise stories rising out-of-home demand, H1 outcomes boosted by Taste & Diet

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August 5, 2021 — Symrise performed “exceptionally well” in the first half of 2021. As the pandemic-induced pressure subsided, the company’s sales and earnings rose significantly. Product solutions for beverages and food also developed dynamically because the falling number of cases of the coronavirus stimulated out-of-home consumption, says Symrise CEO Dr. Heinz-Jürgen Bertram.

“Although the pandemic will continue, we are very confident about the coming months after the good first half of the year and more confident about the future. We are therefore increasing our forecast for the organic sales target as well as for the profitability target, ”he says.

Taste & Nutrition segment
The combined Flavor & Nutrition segment increased its sales organically by 10.1 percent. Sales in the reporting currency rose to € 1,159 million (US $ 1,372 million) and thus significantly exceeded the previous year’s figure (H1 2020: € 1,110 million (US $ 1,314 million).

In the second quarter, the segment saw a gradual normalization of consumer behavior. The increase in out-of-home consumption had a positive effect on demand for beverage products. At the same time, the trend towards healthy cooking at home ensured strong growth.

Beverage applications recorded very good organic sales growth in the double-digit percentage range, according to Symrise.

Click to enlargeSymrise believes that it continues to be reliably positioned despite the current challenging market environment.The greatest growth was achieved in the USA, China, Brazil, as well as Germany, Great Britain and Ireland.

In contrast, sales in the Savory business unit increased, particularly in the national markets of South Africa, Egypt, Mexico and Brazil. They made a significant contribution to surpassing the already strong figures from the previous year.

Sales of sweet product solutions remained at the previous year’s level. The Asia / Pacific and Latin America regions recorded significant increases in sales, while the EAME (Europe, Africa, Middle East) and North America regions were unable to maintain the previous year’s level.

Organic sales rose by 9.7 percent, says the German flavor supplier.

In the reporting currency, sales rose 4.8 percent to 1.9 billion euros (2.2 billion US dollars). Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 6.8 percent compared to the same period in the previous year. The EBITDA margin developed “particularly well” with a value of 22 percent.

Net income rose 15.9 percent to 196 million euros (232 million US dollars). In view of the positive development in the first half of the year, Symrise has raised its forecast for the full year and is aiming for organic sales growth of more than 7 percent (previously 5 to 7 percent) and an EBITDA margin of more than 21 percent (also previously around 21 percent).

The changed consumer behavior as a result of the pandemic is now normalizing, says Symrise.

In particular, the demand for applications for luxury products and product solutions for out-of-home consumption is increasing again and is supporting the group’s growth path.

Strong growth in the segments
Symrise achieved sales growth of 4.8 percent to 1.9 billion euros (2.2 billion US dollars) (H1 2020: 1.8 billion euros (2.1 billion US dollars)).

In addition to the catch-up effects in the first quarter due to the cyber attack in December, the momentum in the second quarter made a positive contribution. Due to the increasing business and the higher demand, sales increased organically by 8.8 percent between April and June.

The company is “confident” about the second half of 2021, even if the general conditions set by the pandemic are likely to remain unchanged.

Published by Elizabeth Green

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