HOLZMINDEN, Germany—Symrise AG hit its target goal—EBITDA margin of 20 percent—in Fiscal Year 2011. Despite the economic slowdown and the burden of increased raw material prices, the Group experienced an increase of 2 percent and reported its sales growth was moderate compared to the previous year, which was characterized by catch-up effects. Sales amounted to €1.58 billion, reflecting both the more cautious market environment and selective portfolio streamlining by discontinuing less profitable business. Symrise saw above-average growth in business with global customers, where sales rose by 7 percent. Activities in Emerging Markets contributed 46 percent of sales in 2011.
“We held our ground well in 2011 and proved we can also achieve our ambitious earnings targets in a weaker economic environment," said Heinz-Jürgen Bertram, CEO, Symrise AG. “Given the widespread turbulence in many regions of the world and high volatility on commodities and capital markets, maintaining profitability was the top priority for Symrise. We therefore consequently discontinued businesses that were not making a sustainable earnings contribution. And we continued our backward integration for strategic raw materials. Our industry-leading EBITDA margin of 20 percent is thus the result of selective portfolio streamlining, intelligent raw material sourcing and restrictive cost management throughout the Group.
“At the same time, we successfully grasped market opportunities in 2011 and expanded our business with global customers, growing sales by above-average 7 percent. In addition, we continued to drive expansion in Emerging Markets. In 2006, just 37 percent of our sales came from Emerging Markets, whereas by 2011 the figure has risen to 46 percent. Bottom line, our net income increased by 10 percent compared to the prior year. In view of our solid overall performance, the Executive Board and Supervisory Board will propose a dividend increase to € 0.62 to the Annual General Meeting."
Scent & Care reported sales of €801.4 million (2010: €804.5 million). Compared to the previous year’s strong figures, this represents a slight decrease of 0.4 percent. At local currency, Scent & Care achieved a slight sales increase of 1 percent.
In all regions, the division benefited particularly strong from demand for menthol and was able to increase sales in this application area at a double-digit rate. Symrise plans to put the new menthol plant in Holzminden into operation over the course of the year. Within the division, the Life Essentials business unit and the Oral Care application area both developed particularly well. This was offset by a decline in sales due to the discontinuation of low-margin business in the Household application area. In addition, the economic slowdown caused sales to fall at Fine Fragrances, where demand is more dependent on consumer sentiment.
Latin America was the fastest growing region for Scent & Care, with sales rising by 6 percent at local currency. Demand for menthol and for cosmetic ingredients was particularly good. The second strongest region, with sales growth at local currency of 3 percent was North America. Strong increases in Fine Aroma Chemicals, Oral and Personal Care were the main drivers. In the Asia/Pacific region, the division generated growth of 2 percent at local currency and benefited from healthy demand for cosmetic applications, UV Protection and Fine Aroma Chemicals. This was offset by portfolio adjustments. Sales in EAME fell by 2 percent at local currency as business was adversely impacted by the political unrest in the Middle East and North Africa.
EBITDA for the division totaled €157.6 million, compared to €160.8 million in 2010. The EBITDA margin of 19.7 percent was slightly below of the previous year’s figure of 20 percent.
