Strong, profitable and confident about the future

Taking portfolio and exchange rate effects into account, Symrise’s sales increased by 8.0% to €3. 408 million (2018: €3. 154 million). As a result, Symrise was again one of the fastest-growing companies in the fragrances and flavours industry. This strong performance was carried by good demand across all segments and regions. Earnings before interest, taxes, depreciation and amortisation (ebitda) as well as normalised for one-time effects resulting from the acquisition of ADF/IDF, ebitda(N) increased by €76.7 million to €707.2 million.

“Once again, Symrise posted strong growth in 2019. With the acquisition of ADF/IDF, we have continued to expand in fast-growing, high-margin business areas. We have also further diversified our product portfolio in the attractive pet food market and expanded our position in North America. In addition, we made investments to expand our capacities over the course of the year and rolled out new technologies around the world. These targeted growth initiatives, combined with our disciplined cost management programme, are clearly reflected in our operational development in recent quarters,” said Dr Heinz-Jürgen Bertram, CEO of Symrise. “Along with our customers, the capital market has also responded favourably to our performance. The share price increased by 42% in 2019. This year, we want our shareholders to participate again in our success. At Symrise’s AGM, the executive board and supervisory board will propose a dividend increase to €0.95 per share.”

Industry leading sales growth

In the year under review, Symrise benefitted from good capacity utilisation and strong demand in all segments and regions. The organic growth rate achieved a clear 5.7% increase. As a result, the group exceeded the average market growth rate in 2019, which was in the 3% to 4% range, according to estimates.

The acquisition of the ADF/IDF Group, a leading US supplier of poultry and egg-based protein specialties, which was completed in November 2019, contributed approximately €32 million to group sales.

Unaffected by fluctuating raw material costs

The markets for raw materials remained tense, especially in the first half of 2019. Notwithstanding the above, Symrise continued to invest in global capacity expansion. Major investment projects included the new manufacturing site in Nantong, China and the expansion of production capacity for menthol and natural extracts in the US and for pet food in Colombia and France.

Symrise achieved very strong profitability in the 2019 fiscal year and significantly exceeded the previous year’s level, with an ebitda(N) margin of 20.8%. As a result, the group was once again one of the most profitable companies in the industry.

Normalised net income increased by 10.2% year-on-year to €303.5 million (2018: €275.3 million). This led to an increase in normalised earnings per share to €2.25 (2018: €2.12). Against the backdrop of the positive growth in earnings, the executive board and supervisory board of Symrise will propose a dividend of €0.95 per share (2018: €0.90) at its AGM. Originally planned for 6 May, the AGM has since been postponed due to the progression of the COVID-19 pandemic. The payment of the proposed dividend will also be postponed.

Strong cash flow trend

Symrise grew its normalised business free cash flow by 53% to €476 million in the year under review (2018: €312 million). This represents 14.1% of sales, compared to 9.9% in the previous fiscal year.

The significant increase can be attributed above all to the strong gain in net income for the period and a below-average rise in working capital.

As at the date of reporting, net debt, including pension provisions and similar obligations, had increased to €2 221.5 million (2018: €1 893.1 million). On 31 December 2019, the ratio of net debt – including pension provisions and similar obligations – to ebitda stood at 3.1, and showed little change compared to the level of the previous year (31 December 2018: 3.0). The medium-term target corridor for the ratio is 2.0 to 2.5.