Symrise increased sales by 6.3 % to € 2,565 million (H1 2023: € 2,414 million). Excluding portfolio and exchange rate effects, sales increased organically by 11.5 %, driven by the positive performance of the company’s two segments.

At the same time, profitability measured by the EBITDA margin of 20.7 % was significantly higher than the previous year’s adjusted figure of 19.7 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to € 530 million, an increase of 11.5 % compared to the previous year’s adjusted figure.

The main drivers of profitability were slightly favourable material usage and, especially, the efficiency program initiated in the first quarter that was implemented consistently in the second quarter and has already generated around 50 % of the target savings of around € 50 million.

Jean-Yves Parisot, chief executive officer of Symrise AG: “Symrise is on course. I am committed to continuing Symrise’s success story – for the good of our customers, our shareholders and our employees. This is what we focused on in the past months. Despite our success in the first half of the year, we are not sitting back. Our good performance in recent months gives us confidence for the second half of the year. For this reason, we are therefore again confirming our growth and profitability targets for the full year.”

Symrise confirms long-term targets

Despite the current volatile market environment as a result of geopolitical tensions and continued high inflation overall, Symrise is well-positioned to continue on its profitable growth path. In this respect, the company is benefiting from its robust and sustainable business model, diversified application portfolio and broad regional presence and customer base.

In light of its good first-half performance, Symrise is therefore confirming its growth and profitability targets, and continues to expect to grow faster than the relevant market. The company is targeting sales growth of between 5 and 7 % (organic) in 2024. In terms of profitability, it is seeking to achieve an EBITDA margin of around 20 %. For the business free cash flow, the Group is aiming for a rate relative to sales of 12 % in 2024. Symrise will also maintain strict cost awareness in the context of its ongoing efficiency program.

In the long term, the company aims to increase its sales to € 7.5 to 8.0 billion by 2028. Annual growth of 5 to 7 % (CAGR) as well as targeted acquisitions are expected to contribute to this. Profitability (EBITDA margin) should remain within a target corridor of 20 to 23 %.

Taste, Nutrition & Health segment

Taste, Nutrition & Health achieved organic sales growth of 10.0 % in the first half of 2024. Taking into account portfolio and exchange rate effects, the segment’s sales in the reporting currency amounted to € 1,572 million, an increase of 2.9 % (H1 2023: € 1,527 million). The portfolio effect from the 2024 divestment of the UK beverage trading business by the Food & Beverage division had a negative impact of € 16 million on sales development.

In the Food & Beverage division, demand for savoury products particularly developed strongly to deliver double-digit organic growth. Strong growth was recorded in the EAME (Europe, Africa, Middle East) and Latin America regions especially. The Naturals business unit and the business units for sweet products and beverage flavouring achieved low single-digit percentage growth and recorded gains in the North America and Asia/Pacific regions especially.

The Pet Food division was also able to sustain its growth trend. Sales development in the Asia/Pacific and Latin America regions was particularly dynamic, with double-digit organic growth in some cases. In EAME, strong growth was posted by Spain, Turkey and Belgium in particular.

In the first half of 2024, sales development in the Aqua Feed division was characterized by declining organic growth. In the course of further portfolio optimization with focus on high-margin growth areas, Symrise intends to divest the business until the end of the year.

The probiotics business, which includes the majority interest in the listed company Probi AB, Lund, Sweden, generated single-digit percentage growth, driven especially by higher demand in the EAME region.

The segment’s EBITDA amounted to € 348 million (H1 2023: € 335 million), an increase of 3.8 %. The increase was mainly attributable to profitable sales growth and a slight decline in the raw material cost ratio. The EBITDA margin was 22.1 %, which was higher than the previous year’s figure of 21.9 %.

Scent & Care segment

Scent & Care achieved organic sales growth of 14.1 %. Taking into account exchange rate effects, sales increased to € 993 million in the reporting currency, 12.1 % higher than the same period of the previous year (H1 2023: € 886 million).

The Fragrance division achieved very strong organic growth. The Fine Fragrances business unit in particular continued its dynamic development and followed its strong performance from previous year with renewed double-digit percentage organic growth. The growth rates in the Asia/Pacific and Latin America regions were particularly pronounced. The Consumer Fragrances business unit also posted double-digit percentage growth. Here, the biggest gains were posted by the Asia/Pacific and EAME regions. With high single-digit organic growth, the Oral Care business unit also showed gratifying development.

Sales development in the Aroma Molecules division recovered significantly in the first half of 2024. Although the market environment remained difficult, the resumption of production at Colonels Island, USA, resulted in a very positive increase in sales compared to the previous year. High double-digit growth rates were achieved in the EAME and Asia/Pacific regions.

Sales by the Cosmetic Ingredients division continued to develop very well in the first six months of the current year, again posting double-digit percentage organic growth. The EAME, Asia/Pacific and Latin America regions again increased sales significantly. Only the North America region saw just slight growth compared to the previous year. The strongest growth was posted by the sun protection business and the Micro Protection business unit.

The segment generated EBITDA of € 182 million, a significant increase of € 42 million compared to the previous year’s adjusted figure of € 140 million. The segment’s EBITDA margin was 18.3 %, 2.5 percentage points higher than the previous year’s adjusted figure of 15.8 %.

Consolidated net income and earnings per share

The consolidated net income attributable to the shareholders of Symrise AG for the first six months of 2024 amounted to € 239 million, which was € 52 million, or 27.7 %, higher than the previous year’s figure of € 188 million. This was mainly due to the improved profitability and the one-time effects of € 29.0 million posted the previous year in the Scent & Care segment. Earnings per share rose to € 1.71 in the first half of 2024, up from € 1.34 in the same period of the previous year.

Cash flow

At € 288 million, cash flow from operating activities for the first half of 2024 was € 144 million higher than in the previous year (€ 144 million), mainly due to an improvement in earnings in the normal course of operations and lower working capital.

Business free cash flow more than doubled in the first six months and amounted to € 226 million, up € 120 million from € 106 million in the same period of the previous year. As a percentage of sales, business free cash flow was 8.8 % (H1 2023: 4.4 %).

The Interim Group Report of Symrise AG for the first half of 2024 can be accessed on the company’s website at https://www.symrise.com/investors/financial-results/.

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“I feel delighted to speak at the Symrise Annual General Meeting for the first time as the Group’s CEO,” said Dr. Jean-Yves Parisot. “We offer our shareholders good opportunities for successful business development, also amid ongoing global uncertainties. Our diversified portfolio, our high level of innovation and our global positioning contribute significantly to this. Our pioneering role in sustainability represents a further key to our success. We want to continue intensifying our efforts in this area until we have achieved net-zero status at all levels by 2045.”

In his presentation to the nearly 350 shareholders present, the new CEO started with a look at the 2023 fiscal year. The year turned out a successful one also with its geopolitical uncertainties. It produced stable organic sales growth of just under eight percent. Both divisions (Taste, Nutrition & Health as well as Scent & Care) recorded significant growth.

In his outlook for the 2024 fiscal year, Parisot stated that Symrise feels confident that it will be able to continue along this successful course. In the first quarter of 2024, the Group managed to increase sales by just under 11% compared with the first quarter of 2023. Overall, Symrise is aiming for organic growth of between five and seven percent this year. This would place the company at a faster growth rate than its respective market. To increase profitability, the company has also launched an efficiency program worth EUR 50 million.

Voting results available online

After the presentation of the business figures, the agenda continued to cover the agenda items up for vote. They included the following topics:

• Appropriation of the accumulated profit for the 2023 fiscal year
• Resolution to discharge the members of the Executive and of the Supervisory Board for the 2023 fiscal year
• Appointment of the financial and other auditors
• Approval of the Remuneration Report
• Amendments to the Articles of Incorporation to enable virtual Annual General Meetings and on the arrangements for the participation of Supervisory Board Members
• Removal of the existing Authorized Capital and the creation of a new Authorized Capital
• Removal of the existing authorization to issue bonds and to create a new conditional capital

The shareholders approved all items on the agenda with a large majority. The detailed voting results are available for download at https://www.symrise.com/investors/annual-general-meeting/.

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To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Maddy Barron at maddy@bellpublishing.com.

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Symrise continued on its profitable growth course in the first nine months of the year and achieved organic sales growth of 7.4 %. Taking into account portfolio and exchange rate effects, group sales in the first nine months of the year increased to € 3,610 million (9M 2022: € 3,493 mil-lion), growth of 3.3 % compared to the same period of the previous year.

Both segments contributed to this positive development and grew sales in an economic environment that continues to be challenging worldwide. Sales increased organically in the third quarter by 6.4 %. Negative ex-change rate effects of 9.4 % led to a decline in sales of -3.0 % in the reporting currency. In light of the robust organic growth, Symrise has confirmed its growth and profitability targets, and at the same time extended its long-term growth objectives until 2028.

Dr. Heinz-Jürgen Bertram, chief executive officer of Symrise AG: “In the third quarter, Symrise was able to seamlessly continue the positive sales trend of the previous months. Despite high inflation and sustained volatility in our markets, we are also optimistic for the rest of the year and expect robust demand. Our diversified portfolio and broad international positioning will also help us this year to capitalize on our growth potential and create sustainable value. We are firmly convinced that we have set the right course for the future, which is why we extend our growth targets in the long term until 2028. We are targeting continued organic growth of 5 to 7 % and an EBITDA margin of 20 to 23 %.”

Sales development by region

The Latin America and EAME (Europe, Africa, Middle East) regions recorded the strongest organic growth, with 16.0 % and 15.1 % respectively. The main growth drivers were the Food & Beverage, Pet Food, Fragrance and Cosmetic Ingredients divisions. The Asia/Pacific region achieved solid organic growth of 3.5 %, primarily in the Fragrance, Food & Beverage and Cosmetic Ingredients divisions. Sales development in North America suffered due to the production shutdown at Colonel Island. Organically, sales there were 3.4 % down on the same period of the previous year.

High growth for food, beverage and pet food

The Taste, Nutrition & Health segment increased its sales organically by 9.5 % in the first nine months. In the third quarter, organic growth stood at 6.0 %. Taking into account portfolio and exchange rate effects, the segment’s sales in the first nine months increased to € 2,267 million (9M 2022: € 2,178 million). Last year’s acquisition of Wing Biotechnology in China contributed around € 21 million to growth.The Food & Beverage division achieved high single-digit percentage organic growth. Strong growth momentum came from the business units for sweet and savory products, and beverages. Strong growth was recorded especially in the EAME and Latin America regions. The Naturals business unit increased sales particularly in the Asia/Pacific and Latin America regions.The Pet Food division achieved single-digit percentage organic growth. The EAME and Latin America regions posted double-digit percentage growth. Sales development was dynamic in France, Poland, Brazil, Colombia, and Mexico with pet food products. Probiotics business remained below the previous year’s level and recorded a slight decline in sales in the first nine months mainly due to weaker demand in the North America and EAME regions.

Symrise reaffirms growth and profitability targets

Based on the positive business development in the first nine months, Symrise confirms its growth and profitability targets for the full year 2023. The Group is aiming for organic sales growth of 5 to 7 %. De-spite high inflation and sustained volatility in our markets, profitability should be around 20 % based on an adjusted EBITDA margin. Symrise has also extended its long term targets. By 2028, the company plans to increase Group sales to € 7.5 to € 8.0 billion, supported by annual organic growth of 5 to 7 % (CAGR) and targeted acquisitions. Profitability should remain within a target corridor of 20 to 23 % (EBITDA margin).

Information on the ongoing antitrust proceedings: Symrise is continuing to cooperate in full with the antitrust authorities. The company has still not found any evidence of wrongdoing and continues to believe that all the accusations are unfounded. To date, the facts upon which the investigations are based have not been specified. The Group takes legal obligations and compliance requirements very seriously.

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SET Flavors by Symrise help create unique taste, nutrition, and health solutions. They use superior separation technologies to access and enrich the characteristics from food essentials or valuable product side streams. The Selective Enrichment Technologies of the SET Flavors brand combine efficient processes and advanced technologies that enable Symrise and its partners to capture nature ́s complexity, creating both signature and authentic taste profiles.

Consumers today place great focus on sustainability. Caring for planetary health is driving their consumption habits and demands, especially in food and beverages. Avoiding food waste with concepts like ‘reuse, reduce, recycle or re-engineer’ form the dominating trends. At the same time, taste continues to drive their preferences. Important buying criteria for food and beverages include signature, rich taste as well as authentic, natural ingredients. Consequently, food and beverage manufacturers must combine both consumer wishes with great tasting, authentic products while ensuring sustainable development processes.

“Consumers want to know and understand what their food consists of, where the ingredients come from, how they get processed, and how the planet and people throughout the production process benefit,” says Leif Jago, global marketing manager Food & Beverage at Symrise.

Valorization of natural product side streams for flavour creation

Symrise SET Flavors addresses these consumer wishes and matches the future’s ecosystem deployment. It supports the innovation network with strategic partners to source, enrich, decode, and optionally transform nature’s complexity for the creation of taste solutions by using selected natural raw materials.

SET Flavors makes natural raw materials accessible with a smart combination of extraction, separation, and concentration technologies. This includes adsorption, nano- and ultra-filtration, fractional distillation, and osmosis based on advanced membrane developments. These technologies enable Symrise to access the enriched and authentic essentials needed to deliver nature ́s full complexity in its product solutions.

In addition, SET Flavors links closely to the technical research platforms of Symrise: Sensory Guided Analysis, AgroScience, Biotechnology, and Separation Technologies. They combine the objective to identify, enrich and reconstitute side stream materials. This aims at degrading or eliminating undesired odor and taste actives from complex raw materials and enriching the pleasant components of raw materials.

SET Flavors covers the utilization of solid or liquid side streams from the food industry –including pomaces, sift outs, materials from the preservation process, vegetable processing, fermentation, and cell materials. This approach helps Symrise identify value adding components. By using natural conversion processes – such as biotransformation via enzymes or fermentation – SET Flavors generates signature profiles for use in beverage and culinary applications, which contribute to culinary complexity and pleasant taste profiles.

Authentic, signature taste for food and beverage manufacturers

“Our new brand SET Flavors is championing a dedicated combination of technologies to source, enrich, decode and transform value from nature,” explains Stefan Brennecke, master technologist and head of Separation Science in Research & Technology Food & Beverage at Symrise. “In doing so, it generates a unique value proposition for our products and customers to serve superiority and consumer preferred market products.”

The technologies enable a better use of existing specialties and solutions to achieve a certain taste or aroma effect, including juiciness, masking, complexity, and authenticity. Their deployment enables Symrise to provide uniqueness and added value to its taste solutions, delivering signature food and beverage products for customers. SET Flavors deploys various principles of circular economy and contributes to a more sustainable food system by processing materials from side streams.

The SET Flavors technologies are established in production or pilot scale. Based on the composition of the new raw materials, the Research & Technology and Production teams use their expertise to modify and optimize processes. Using this as a base, the research platforms are continuously exploring new technological approaches and processes to reduce costs, energy and avoid waste materials.“As a new brand, SET Flavors strongly align with the core competencies of Taste, Nutrition and Health – supporting sustainability as an integral part of our company philosophy,” adds Uwe Schäfer, director Applied Research in Research & Technology Food & Beverage at Symrise.

“With the combination of great, authentic taste and sustainable practices, SET Flavors contributes to our approach towards naturalness in the Symrise code of nature platform. The brand supports manufacturers to develop unique food and beverage products, while responding to the consumer need for sustainable and planet-friendly consumption.”

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Experts expect the topic of naturalness to gain exponential momentum in Asia in the near future. Analysts1 forecast the Asia Pacific health and wellness food market to grow at a CAGR of 9.9% from 2022 to 2029. In light of this, Symrise has invested in a dedicated facility focusing on side stream valorizations, technology developments and new raw materials research.

“With the investment in our Enhanced Naturals @SPark, we are future-proofing our business. Also, we are well-positioning our offer of various specific natural solutions across all categories to our customers,” said Medardo Villafana, technical director, Savory, Research & Technology, Asia Pacific.

The purpose-built labs in the Enhanced Naturals @SPark focus on thermal treatments, extraction, and biotransformation. They build on the deep understanding of consumer needs at Symrise. This enables sustainable, natural, and plant-based innovation across categories such as culinary, dairy and beverages. In turn, Symrise can offer customers more options to cater to the rising demand of discerning consumers.

Further, a co-development area capable of hosting up to twenty people in the Enhanced Naturals @SPark will allow spontaneous conversations and co-creation with customers.

“With the addition of the Enhanced Naturals @SPark, we reiterate our focus on Innovation in the context of changing market and consumer dynamics. Enhanced Naturals gives us the technology & capability to collaborate with our customers on clean label solutions, authenticity and elevate the use of natural ingredients. Consumers in Asia will progressively demand the use of natural ingredients in food & beverage products. With sustainable practices, we continue to strengthen our Taste, Nutrition & Health presence in the space of naturals that directly ties to the strategic objectives of Symrise as an Augmented Flavor House,” said Kapil Sethia, president, Food & Beverage, Asia Pacific.

1Source: Asia-Pacific Health And Wellness Food Market, Data Bridge Market Research, July 2022

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To submit a news item for inclusion, please contact Suzanne Christiansen at suzanne@bellpublishing.com or Alex Rivers at arivers@bellpublishing.com.

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