HOLZMINDEN, Germany—Symrise AG has had a successful start to the Financial Year 2011 and was able to exceed its high prior year sales and earnings figures. In the first quarter 2011 (1Q11) Symrise benefited from the continued positive development of demand even though it was more moderate than in the previous year, which was characterized by catch-up effects. During the reporting period Symrise increased sales by 6.6 percent to € 416.8 million, growing faster than the market for fragrances. The growth was driven by business with major customers as well as activities in Emerging Markets, especially Latin America. The Group’s EBITDA rose 2 percent to € 85.2 million. Despite a sharp increase in raw material prices, Symrise achieved an EBITDA margin of 20.5 percent. A high level of capacity utilization and continuous cost management significantly contributed to this development.
“As expected, markets have returned to more moderate growth following the extraordinarily strong year 2010," said Heinz-Jürgen Bertram, CEO of Symrise AG. “Thanks to our good strategic positioning we continue to benefit from the dynamic demand in important markets, especially the Emerging Markets in Asia and Latin America. We maintained our EBITDA margin at more than 20 percent; this demonstrates that we are able to successfully meet the challenges posed by raw material markets at present. We have set a good basis during the first quarter and are confident as we look to the coming months. However, uncertainties remain with regards to the political developments in North Africa and the Middle East, the effects of the natural disaster in Japan, and the price development on raw material markets."
Scent & Care
In the first quarter Scent & Care boosted sales by 6.6 percent (4.2 percent at local currency) to € 218.4 million (previous year: € 204.8 million). The Scent & Care division was thus able to build upon the extremely dynamic development of the previous year and achieved growth in all regions. The segments Fine Fragrances and Aroma Molecules even enjoyed double-digit growth. Positive economic developments and the strong demand in the luxury segment were especially noticeable in the Fine Fragrances segment. Scent & Care also benefited from business with major customers, as well as the launch of a number of skin care and cosmetic products in the Life Essentials segment. In Latin America the division achieved strongest growth with a sales increase of 17 percent at local currency. In Asia sales rose 4 percent at local currency and in North America by 3 percent at local currency. With a 2 percent sales increase (local currency) the EAME region developed slower than the other regions.
The EBITDA rose 5 percent to € 43.0 million (previous year: € 41.1 million). The EBITDA margin remained at a high level of 19.7 percent (previous year: 20.1 percent).