HOLZMINDEN, Germany—Symrise AG significantly increased sales and earnings in the first quarter of 2010. In an improving market environment the company saw sales al local currency grow 13.2 percent or 12.8 percent at actual rates. Symrise grew across all divisions and regions, profiting from a rise in demand as well as the increasing normalization of order patterns and stock-keeping on the part of many customers. Group EBITDA rose by 42 percent to € 83.3 million. At 21.3 percent the EBITDA margin significantly exceeded the level of the first quarter of the previous year. The positive sales development as well as the effects of the restructuring measures implemented in 2009 contributed considerably to the improvement in earnings.
Strong growth in all regions
In the first quarter Symrise saw Group sales at local currency grow by 13.2 percent to € 392.5 million (previous year: € 346.7 million) and by 12.8 percent at actual rates. The growth rate of 15.4 percent at local currency in emerging markets again exceeded the figure for the Group as a whole. The share of total sales generated in emerging markets thus rose one percentage point to 44 percent. Symrise also benefited from a recovery of the mature markets, namely Western Europe and the United States.
The strongest growth in sales of 18 percent (17 percent at local currency) was posted in the Asia/Pacific region. The EAME region showed noticeable signs of recovery in the first quarter. Sales rose 15 percent (14 percent at local currency). The North American market also experienced positive effects from the improved market conditions and increased sales by 6 percent and by a strong 13 percent at local currency. Latin America was less affected by the economic crisis in 2009. Here sales rose 7 percent (4 percent at local currency) in the first quarter over the already high figures for the previous year.
Sales with major customers grew 13 percent
Sales with the ten largest customers rose 13 percent at local currency. Symrise thus generated 30 percent of Group sales with this strategically important customer group. In the Scent & Care division, the 10 percent increase of sales with the 10 largest customers was mainly due to the recovery in the application areas Fine Fragrance and the luxury segment of Personal Care.
Scent & Care—Double-digit growth and higher profitability
The Scent & Care division, and especially the application area Fine Fragrance and the luxury segment of Personal Care, benefited noticeably from the improvement of the economy. These business areas suffered from a decline in consumer spending last year. The application areas Household, Aroma Molecules and Cosmetic Ingredients also performed very well. The Scent & Care division also profited from the launch of new products including those in the cosmetics area.
Scent & Care enjoyed double-digit growth rates in the regions EAME, North America and Asia/Pacific. With 20 percent sales growth at local currency, EAME posted the largest increase in sales in the division. Sales in Latin America grew only 1 percent over the very strong first quarter of 2009.
In the first quarter Scent & Care posted sales of € 204.8 million (previous year: € 179.8 million) for a growth rate of 13.9 percent (14.1 percent at local currency). The EBITDA rose by 53 percent to € 41.1 million (previous year: € 26.9 million). The EBITDA margin of 20.1 percent (previous year: 15 percent) achieved a high level.