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 Dax newcomer Symrise has again increased sales and earnings. The manufacturer of fragrances and flavorings turned over 3.8 billion euros in the past year – 8.7 percent more than in the previous year. Before interest, taxes, depreciation and amortization, Symrise achieved a profit (Ebitda) of 814 million euros – almost ten percent more than in 2020. The group announced this on Tuesday morning.
Symrise was promoted to the Dax in the fall and presented its annual balance sheet in the first stock exchange league for the first time on Tuesday. “2021 was an all-round successful year for Symrise,” said CEO Heinz Jürgen Bertram, according to a statement. Analysts had expected growth of this magnitude.
The company, based in Holzminden in Lower Saxony, is not in the public eye, even though consumers come into contact with Symrise products 20 to 30 times a day. The Dax group produces fragrances and flavorings, so it makes sure that toothpaste tastes like mint or ice cream like vanilla. Hardly any cosmetics or food manufacturer can do without supplies from Symrise. Customers include Unilever (Dove) and Henkel (Persil).
Symrise has achieved impressive growth in recent years. Between 2006 and 2021, the group grew by 7.8 percent annually. The margin was always around 20 percent. Symrise was able to keep its profitability stable even during the corona crisis. The Ebitda margin was 21.3 percent in 2021 – 0.2 percentage points more than in the previous year.
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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 confirms growth targets
In this environment, Symrise is one of the fastest growing in the industry. The group, which employs over 11,000 people, confirmed its growth targets on Wednesday. In the coming years, sales are expected to increase by five to seven percent.
However, profitability is likely to fall slightly temporarily in view of rising raw material costs. In 2022, Symrise wants to achieve a slightly lower Ebitda margin of 21 percent. In the past quarter, the raw material costs for Symrise rose by two percent, in the coming group boss Bertram expects further increases of six percent, he told the Handelsblatt this week.
Symrise is based on two pillars: the “Scent & Care” division includes fragrances and additives for cosmetics; in the “Taste, Nutrition & Health” area, Symrise produces flavorings for food, beverages and animal feed. Symrise was able to increase sales and earnings in both areas.
In the first division, Symrise benefited from the fact that travel activity picked up again after the corona restrictions and there was more demand for perfumes and cosmetics such as sunscreen. In the second area, the increasing out-of-home consumption, especially of drinks, as a result of the relaxed corona measures had a positive impact. In addition, the segment is benefiting from very strong growth rates in the animal feed sector.
Against the background of the positive development, Symrise intends to increase the dividend for the twelfth time: shareholders are to receive EUR 1.02 per share. Symrise paid 97 cents for the 2020 financial year.
More: Economic miracle of the 2010s: Why the unknown Dax newcomer Symrise has been growing for years.