COMPANY FOCUS
Strong, profitable and confident about the future Symrise continued its profitable growth course in 2019, achieving all its targets for the year. This was made possible by an 8.0% increase in group sales, amounting to 5.7% growth in organic sales. A significant portion of this growth was seen in the company’s fragrances division, which experienced strong demand for fine fragrance products.
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aking portfolio and exchange
the year and rolled out new technologies
rate effects into account, Symrise’s
around the world. These targeted growth
in the 2019 fiscal year and significantly
sales increased by 8.0% to €3.
initiatives, combined with our disciplined
exceeded the previous year’s level, with
408 million (2018: €3. 154 million).
cost management programme, are
an ebitda(N) margin of 20.8%. As a result,
As a result, Symrise was again one of
clearly reflected in our operational
the group was once again one of the most
the fastest-growing companies in the
development in recent quarters,” said Dr
profitable companies in the industry.
fragrances and flavours industry. This strong
Heinz-Jürgen Bertram, CEO of Symrise.
Normalised net income increased by
performance was carried by good demand
“Along with our customers, the capital
10.2% year-on-year to €303.5 million (2018:
across all segments and regions. Earnings
market has also responded favourably
€275.3 million). This led to an increase in
before interest, taxes, depreciation and
to our performance. The share price
normalised earnings per share to €2.25
amortisation (ebitda) as well as normalised
increased by 42% in 2019. This year, we
(2018: €2.12). Against the backdrop of the
for one-time effects resulting from the
want our shareholders to participate
positive growth in earnings, the executive
acquisition of ADF/IDF, ebitda(N) increased
again in our success. At Symrise’s AGM,
board and supervisory board of Symrise will
by €76.7 million to €707.2 million.
the executive board and supervisory
propose a dividend of €0.95 per share (2018:
board will propose a dividend increase to
€0.90) at its AGM. Originally planned for 6
€0.95 per share.”
May, the AGM has since been postponed
“Once again, Symrise posted strong growth in 2019. With the acquisition of ADF/IDF, we have continued to expand
Symrise achieved very strong profitability
due to the progression of the COVID-19
in fast-growing, high-margin business
Industry leading sales growth
pandemic. The payment of the proposed
areas. We have also further diversified our
In the year under review, Symrise
dividend will also be postponed.
product portfolio in the attractive pet food
benefitted from good capacity utilisation
market and expanded our position in North
and strong demand in all segments and
Strong cash flow trend
America. In addition, we made investments
regions. The organic growth rate achieved
Symrise grew its normalised business free
to expand our capacities over the course of
a clear 5.7% increase. As a result, the
cash flow by 53% to €476 million in the
group exceeded the average market
year under review (2018: €312 million). This
growth rate in 2019, which was in the 3% to
represents 14.1% of sales, compared to 9.9%
4% range, according to estimates.
in the previous fiscal year.
The acquisition of the ADF/IDF Group,
The significant increase can be attributed
a leading US supplier of poultry and
above all to the strong gain in net income
egg-based protein specialties, which was
for the period and a below-average rise in
completed in November 2019, contributed
working capital.
approximately €32 million to group sales.
As at the date of reporting, net debt, including pension provisions and similar
Unaffected by fluctuating raw material costs
obligations, had increased to €2 221.5 million
The markets for raw materials remained
2019, the ratio of net debt – including
tense, especially in the first half of 2019.
pension provisions and similar obligations
Notwithstanding the above, Symrise
– to ebitda stood at 3.1, and showed little
continued to invest in global capacity
change compared to the level of the
expansion. Major investment projects
previous year (31 December 2018: 3.0). The
included the new manufacturing site in
medium-term target corridor for the ratio is
Nantong, China and the expansion of
2.0 to 2.5.
production capacity for menthol and
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| APRIL 2020 | P C Review
(2018: €1 893.1 million). On 31 December
The equity ratio increased from 39.5% to
natural extracts in the US and for pet food in
41.4% at year-end, showing Symrise is in a
Colombia and France.
very good financial position.
