The company is not in the public eye, even though consumers come into contact with Symrise products 20 to 30 times a day.
(Photo: Symrise)
Dusseldorf The fragrance and aroma manufacturer Symrise got off to a good start in the first quarter. The turnover of the Dax group rose by 14.9 percent to 1.1 billion euros. Under our own steam, i.e. excluding takeovers and exchange rate effects, it was an increase of 8.3 percent. The company, based in Holzminden in Lower Saxony, announced this on Wednesday morning. Symrise intends to comment on the development of profits only when the half-year figures are presented.
Symrise is benefiting from the easing of corona regulations, increasing travel activity and consumer behavior that is returning to normal. Above all, the demand for sun protection products, perfumery articles, but also applications for beverages and culinary products increased sales.
“The ordering behavior of our customers clearly shows that consumers have become more active again with the expiration of many corona restrictions,” CEO Heinz-Jürgen Bertram is quoted as saying in a corporate statement.
Symrise is not the focus of public attention, even though consumers come into contact with the company’s products an average of 20 to 30 times a day. The company makes more than 30,000 fragrances and flavorings, making toothpaste taste like mint or ice cream like vanilla.
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Hardly any cosmetics or food manufacturer can do without supplies from Symrise. Customers include Danone, Unilever, L’Oréal and Henkel.
Despite the war in Ukraine, Symrise is sticking to its annual targets
Symrise believes it is well positioned for the current fiscal year – despite the Russian war of aggression in Ukraine, as a result of which the company expects raw material prices to rise. The company continues to target compound annual sales growth of five to seven percent. Before interest, taxes, depreciation and amortization (Ebitda), around 21 percent should remain as profit at the end of the year.
“As the year progresses, we will see more volatility in the economic environment as a result of the war in Ukraine and the ongoing fight against the pandemic. We still expect reliable demand,” says Bertram, who has managed the group since 2009.
Symrise, which is one of the fastest growing companies in the industry, has two business areas: in the “Taste, Nutrition & Health” division, the group produces flavorings for food and beverages as well as ingredients for animal feed. The “Scent & Care” segment is primarily about fragrances and additives for body care products, cosmetics and cleaning agents.
>> Read about this: Not in the limelight, but successful: That’s the head of Symrise
The “Scent & Care” division achieved an organic plus of 4.9 percent to 419.3 million euros in the first quarter. This is mainly due to the fact that consumers are buying more perfume and luxury cosmetics again as a result of the corona easing. These are often purchased at airports. Symrise produces the basic ingredients for perfumes for companies like L’Oréal.
Compared to the same quarter of the previous year, Symrise recorded growth in the double-digit percentage range in fine perfumery. However, there was less demand for hygiene and cleaning products than in the same quarter of the previous year, which was dominated by the pandemic.
The Taste, Nutrition & Health division also posted good numbers due to progress in the fight against the pandemic. Here, sales increased organically by 10.5 percent to EUR 671.3 million. Above all, increasing out-of-home consumption led to high demand for beverages. The animal feed business again grew in double digits.
Notable rise
The company, which was promoted to the leading index Dax in the fall, has made a remarkable ascent in recent years. Since 2006, sales have grown by almost eight percent annually on average. With a stable Ebitda margin of around 20 percent, Symrise is highly profitable even in the corona crisis.
Alongside the US group IFF and the Swiss companies Givaudan and Firmenich, Symrise is one of the four major fragrance and aroma manufacturers that together control half of the market. The business with fragrances and flavorings has been a major growth area for years – and will remain so: in addition to the basic need for food and drink, megatrends such as health and care are driving demand.
Symrise relied early on on close cooperation with raw material suppliers in order to stabilize the supply chains. In addition, the management has made clever acquisitions in recent years, especially in the profitable aroma business with pet food. The group is increasingly penetrating higher-margin business areas outside of the traditional flavor and fragrance sector. He already generates a third of his turnover with this.
In the past five years, the share price has risen by 40 percent. This year the paper is weakening a bit, a share certificate recently cost a good 106 euros.
More: Economic miracle of the 2010s: Why the unknown Dax newcomer Symrise has been growing for years