Symrise AG Reports Strong Growth and Enhanced Profitability in H1 2024
Source: The DairyNews
In the challenging global market landscape of 2024, Symrise AG has continued to advance its profitable growth trajectory. For the first half of the year, the company reported a significant increase in sales and enhanced profitability, primarily driven by rigorous cost management strategies.
Financial Performance Highlights:
Revenue Growth: Symrise’s sales rose by 6.3% to €2,565 million, up from €2,414 million in the same period last year. Organically, excluding portfolio and exchange rate impacts, sales surged by 11.5%.
EBITDA Improvement: Earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by 11.5% to €530 million, with an EBITDA margin of 20.7%, up from the adjusted previous year's margin of 19.7%.
Operational Efficiencies: The improvement in profitability can be attributed to more efficient material usage and the effective implementation of an efficiency program initiated in Q1, which has already realized approximately 50% of its targeted €50 million in savings.
Executive Insight:
Jean-Yves Parisot, CEO of Symrise AG, emphasized the company's strong performance, stating, "Symrise is firmly on course. We are committed to sustaining our growth and profitability, driven by our dedication to our customers, shareholders, and employees. Our solid H1 achievements bolster our confidence as we reaffirm our full-year growth and profitability targets."
Despite ongoing global uncertainties, including geopolitical tensions and inflation, Symrise is well-equipped to maintain its growth momentum. The company benefits from a robust and sustainable business model, diversified across multiple sectors and geographies.
Future Goals:
Sales Targets: Symrise aims for organic sales growth of 5-7% in 2024.
Profitability Targets: The company seeks to sustain an EBITDA margin around 20% and aims for a business free cash flow relative to sales of 12%.
Long-Term Ambitions: By 2028, Symrise plans to increase its sales to between €7.5 billion and €8.0 billion, with a target EBITDA margin of 20-23%, supported by consistent organic growth and strategic acquisitions.
Segment Performance:
Taste, Nutrition & Health: This segment posted a 10.0% organic sales growth, reaching €1,572 million, despite the divestment impacts in its portfolio.
Scent & Care: Achieved a robust 14.1% organic growth, with sales reaching €993 million, driven by strong demand across its Fragrance and Cosmetic Ingredients divisions.
Consolidated Financials:
Net Income: Grew by 27.7% to €239 million, with earnings per share increasing from €1.34 to €1.71.
Cash Flow: Operating cash flow improved significantly to €288 million, with business free cash flow more than doubling to €226 million.
Revenue Growth: Symrise’s sales rose by 6.3% to €2,565 million, up from €2,414 million in the same period last year. Organically, excluding portfolio and exchange rate impacts, sales surged by 11.5%.
EBITDA Improvement: Earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by 11.5% to €530 million, with an EBITDA margin of 20.7%, up from the adjusted previous year's margin of 19.7%.
Operational Efficiencies: The improvement in profitability can be attributed to more efficient material usage and the effective implementation of an efficiency program initiated in Q1, which has already realized approximately 50% of its targeted €50 million in savings.
Executive Insight:
Jean-Yves Parisot, CEO of Symrise AG, emphasized the company's strong performance, stating, "Symrise is firmly on course. We are committed to sustaining our growth and profitability, driven by our dedication to our customers, shareholders, and employees. Our solid H1 achievements bolster our confidence as we reaffirm our full-year growth and profitability targets."
Despite ongoing global uncertainties, including geopolitical tensions and inflation, Symrise is well-equipped to maintain its growth momentum. The company benefits from a robust and sustainable business model, diversified across multiple sectors and geographies.
Future Goals:
Sales Targets: Symrise aims for organic sales growth of 5-7% in 2024.
Profitability Targets: The company seeks to sustain an EBITDA margin around 20% and aims for a business free cash flow relative to sales of 12%.
Long-Term Ambitions: By 2028, Symrise plans to increase its sales to between €7.5 billion and €8.0 billion, with a target EBITDA margin of 20-23%, supported by consistent organic growth and strategic acquisitions.
Segment Performance:
Taste, Nutrition & Health: This segment posted a 10.0% organic sales growth, reaching €1,572 million, despite the divestment impacts in its portfolio.
Scent & Care: Achieved a robust 14.1% organic growth, with sales reaching €993 million, driven by strong demand across its Fragrance and Cosmetic Ingredients divisions.
Consolidated Financials:
Net Income: Grew by 27.7% to €239 million, with earnings per share increasing from €1.34 to €1.71.
Cash Flow: Operating cash flow improved significantly to €288 million, with business free cash flow more than doubling to €226 million.
