Symrise raises outlook after ‘outstanding’ 1H 2020

Symrise raises outlook after ‘outstanding’ 1H 2020

THE WHAT? Symrise has announced its results for the first half of fiscal 2020 and raised its outlook for the year after ‘very successfully’ continuing its profitable growth course over the first six months of the year.

THE DETAILS The German flavors and fragrances manufacturer saw sales rise 7.6 percent year-on-year to €1,821 million and EBITDA margin improve an ‘outstanding’ 21.6 percent, despite the ongoing GVC.

All segments experienced growth, although the Scent & Care segment could only be considered to have delivered an uptick in organic terms (+2.6 percent); reported, sales were down slightly (€711 million versus €712 million in 2019) although EBITDA was up, reaching €146 million versus €140 million in 1H 2019.

Within Scent & Care, the Fragrance division experienced strong demand, particularly in the oral care and consumer fragrances sectors, although the pandemic put paid to growth in the fine fragrances branch, meaning overall growth for the unit stood in the single-digit percentage range. Positive momentum in the menthols business group helped boost sales in the Aroma Molecules tranche, while Cosmetics Ingredients experienced good growth across all departments save sun protection, which was affected by the sharp drop in travel due to COVID-19 restrictions.

THE WHY? Dr Heinz-Jürgen Bertram, CEO of Symrise AG explains, “In the second quarter the coronavirus pandemic began to significantly impact the global economy and above all many people’s everyday lives. Even in this historically exceptional situation, Symrise has done an excellent job of staying on course. Thanks to our global presence, diversified portfolio and broad customer base, our feet rest very firmly on the ground. We remained fully operational in the second quarter and were able to supply our customers in the usual reliable manner. Of course, it is hard to predict the course of the coronavirus pandemic. However, after our performance in the first half of the year, we are looking ahead to the second half with confidence. For the full fiscal year 2020 we again want to grow faster than the market and expect that we will achieve increased profitability overall. We are therefore raising our guidance for the EBITDA margin to a range of 21 to 22 percent.”