Heinz-Jürgen Bertram, CEO of Symrise AG, said: “Symrise managed to maintain our above-average growth rate despite the difficult environment. We want to share our business success with our shareholders and therefore intend to pay a stable dividend of € 0.50 per share. The market environment has improved in recent months, but continuously high raw material prices and the low level of consumer confidence still constitute challenges. We anticipate Symrise will again exceed market growth and generate an EBITDA margin of at least 20 percent in the current financial year. Our mid-term objective is to capitalize on our special strengths in dynamic regions and in innovative application areas to become the third-largest supplier in our market. We are confident that we can achieve this goal with our current strategy and under our own power.”
Rapid growth in emerging markets
In 2009, Symrise saw a 3.2-percent increase in Group sales from € 1,319.9 million to € 1,362.0 million. Sales at local currency rose by 2.7 percent. Revenues generated in emerging markets grew disproportionately and increased by 4.5 percent at local currency. Their share of the Group’s total sales rose from 40 percent in 2008 to 41 percent.
The South American region grew particularly strong in 2009. Symrise increased sales by 12 percent and by 17 percent at local currency. The Asian/Pacific region contributed significantly to growth with an 8-percent increase in sales (5 percent at local currency). In North America, Symrise revenues rose by 14 percent (12 percent at local currency), partly due to the acquisitions made in 2008. The EAME region, which was hit especially hard in the first half of the year by the weak economy and by destocking of customer inventories, returned to growth during the second half of the year. Sales in this region for the entire year declined by 4 percent (3 percent at local currency).
Scent & Care—Slight sales increase in 2009
The Scent & Care division benefited from an increase in business during the second half of the year. Sales for the division rose by 1.6 percent to € 682.3 million (previous year: € 671.8 million). Positive developments in the application area Household and in the mid-price segment of Personal Care more than compensated for the weak demand in Fine Fragrances and in the luxury segment of Personal Care. Oral Care also developed positively.
Scent & Care achieved dynamic growth in emerging markets with an increase of 5 percent at local currency. The division boosted its sales in particular in South America, where even the luxury segment Fine Fragrances grew in contrast to the trend in other regions. In North America Scent & Care benefited significantly from the acquisitions made in 2008. The emerging markets in the Asia/Pacific region also contributed to the growth in revenues. In EAME a surge in business during the second half of the year partially compensated for the slow development of business in the first half.
The Scent & Care division achieved an EBITDA of € 109.0 million (previous year: € 130.2 million) in 2009. The EBITDA margin amounted to 16.0 percent. The normalized EBITDA was € 122.8 million, which translated into an EBITDA margin of 18 percent.