Symrise reports market leading growth for 2007

By Katie Bird

- Last updated on GMT

Related tags: Cent, Perfume

Flavour and fragrance supplier Symrise has reported positive 2007
results thanks to a focus on fast-growing segments and regions.

Sales of the company's 'AND' products - multifunctional products that have additional benefits - performed particularly well in 2007 in both the Scent and Care and Flavour and Nutrition divisions. The company's Scent and Care division experienced positive 2007 results driven in particular by fine fragrances and a number of major new fragrance deals. Sales growth ahead of the market ​ Overall the company recorded sales growth of 3.7 per cent in 2007, with sales figures rising from €1.23bn to €1.27bn although this figure was negatively impacted by exchanges rates. On the basis of local currencies sales growth was recorded at 6.2 per cent. Net income for the year rose to €97m, up from a loss of €90m in 2006 and the EBITDA margin rose from 19.8 per cent to 21.3 per cent thanks to a concentration on high margin products and efficient cost management, stated the company. According to Symrise this growth is twice that experienced by the market in general. 'AND' products particularly successful ​ The company reports particularly strong results for their 'AND' products which now make up 31.5 per cent of total sales. Within the scent and care division the company highlight Hydrascent - a perfume oil with moisturising qualities and Frescascent - a perfume oil with cooling qualities to be used in after sun products, as strong examples of the 'AND' range. In addition, the company underlines its Asset technology which enables customers to measure how long fragrances remain perceptible on skin and hair. The technology is designed to help manufacturers develop products with long lasting scents - a popular product feature in emerging markets. Scent and Care division driven by fine fragrance​ Sales growth for the Scent and Care division rose 3.7 per cent using actual exchange rates to €671.3 m, with an EBITDA margin increase from 17.4 to 20.1 per cent. All regions reported increases although North American results were negatively affected by exchange rates (a 2.4 per cent rise in actual currency calculated as 11.2 per cent in local currencies). Asia Pacific sales increased by 6.4 per cent and South America by 4.7 per cent, whereas sales in Europe and the Middle East rose by 3 per cent. Fine fragrances sales were an important driver of sales growth boosted by several new prestige accounts including L'Instant Magic from Guerlain LVMH and Azarro Now Men from the Clarins Group. Sales of cosmetic ingredients rose by 7.5 per cent mainly down to successful UV filters particularly in Europe and the Middle East, stated the company. The company's Flavour and Nutrition division also reported positive results with a 3.6 per cent sales increase and an increase in the EBITDA margin to 22.8 per cent, from 22.4 per cent in 2006. Looking to the future the company expects to achieve average sales growth of 5 to 6 per cent per year in 2008 and 2009 and an improvement in the EBITDA margin. "All of this gives us the confidence that our sales growth will again be considerably higher than overall industry growth in 2008,"​ said chairman of the management board at Symrise Dr Gerold Linzbach.

Related topics: All Asia-Pacific, Business & Financial

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