DGAP-News: Symrise AG achieves Strong Growth in Sales and

DGAP-News: Symrise AG / Key word(s): Interim Report Symrise AG achieves Strong Growth in Sales and Earnings 05.11.2013 / 07:00 --------------------------------------------------------------------- - Group sales increase by 10 % at local currency to EUR 1.4 billion - Emerging Markets exceed Group growth with sales up by 11 % at local currency - EBITDA increase of 10 % to EUR 290.2 million - EBITDA margin increases to 20.7 % Symrise AG continued its robust growth in the third quarter of 2013 with strong momentum. The Group increased sales to EUR 1,401.2 million in the first nine months of 2013; at local currency this translates into an increase of 10 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 12 % at local currency to EUR 290.2 million. With an EBITDA margin of 20.7 %, Symrise remains one of the most profitable companies in the industry. Both divisions and every region contributed to this positive performance. In the Emerging Markets Symrise was able to increase sales by 11 % at local currency, thereby exceeding the Group's overall growth rate. Dr. Heinz-Jürgen Bertram, CEO of Symrise AG said: 'Symrise has carried strong momentum into the second half of the year. We successfully left behind slight economic slowdowns, which occurred in certain markets. Along with high demand, our investments paid off: The new menthol capacities were well utilized and the US fragrance activities acquired at the beginning of the year provided an additional boost to our fragrance business. For the remaining weeks of 2013, we are confident on the continuation of Symrise's robust development. We plan to once again grow faster than the market and end the fiscal year as one of the most profitable companies in the industry.' Double-Digit Growth in Nearly All Regions In the first nine months of the current fiscal year, Symrise increased its sales by 6 % in reporting currency to EUR 1,401.2 million (9M 2012: EUR 1,319.6 million). At local currency, this corresponds to a 10 % increase. North America was the strongest region, generating sales growth of 15 % at local currency. Symrise benefited from both, its existing business and the fragrance activities acquired from Belmay at the start of the year. Latin America was the second strongest region, posting a sales increase of 12 % at local currency. The Asia/Pacific region came in third with a sales increase of 11 %. Meanwhile, EAME was able to leave the difficult developments of the previous year behind - achieving solid growth of 7 % at local currency. High Profitability with an EBITDA Margin of 20.7 % Due to good utilization rates and ongoing cost management, the cost of sales was disproportionately low. Price decreases for certain raw materials also contributed to this positive development. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 10 % (12 % at local currency) in the first nine months to EUR 290.2 million (9M 2012: EUR 264.4 million). With an EBITDA margin of 20.7 %, Symrise remained highly profitable during the reporting period. Net income rose by 11 % to EUR 139.9 million (9M 2012: EUR 125.9 million) in the reporting period. As a result, earnings per share rose from EUR 1.07 to EUR 1.18. Strong Development in Cash Flow from Operating Activities Cash flow from operating activities grew by more than 27.7 % to EUR 176.2 million (9M 2012: EUR 138.0 million). The ratio of net debt (incl. pension provisions) to EBITDA amounted to 2.2 (December 31, 2012: 2.4). Symrise therefore has sufficient financial leeway to further implement its growth strategy. Sales in the Emerging Markets Outpace Group Growth Symrise also benefited from sustained strong momentum in the Emerging Markets. Sales in these regions were up by 11 % at local currency and therefore exceeded the Group's overall sales growth. The share of overall sales generated in the Emerging Markets totaled 48 %. Scent & Care Division The Scent & Care division grew sales by 10 % (14 % at local currency) to EUR 736.3 million (9M 2012: EUR 670.6 million) and particularly benefited from higher demand in the Aroma Molecules and Fragrances business units. The expanded menthol production capacities added last year and the fragrance activities acquired from Belmay in the first quarter also contributed to the positive development. Moreover, both measures underscore Symrise's strategy of investing in value creation aligned with market and customer needs. The division posted its strongest growth in North America with sales up by 20 % at local currency. The Asia/Pacific region also generated strong growth and achieved a sales increase of 15 % at local currency compared to the previous year's period. In Latin America, Scent & Care sales increased by 11 % at local currency despite high comparables from the previous year. The EAME region experienced a significant recovery from the previous year with 10 % sales growth at local currency. This can be particularly attributed to activities in the Aroma Molecules and Life Essentials segments. EBITDA in the Scent & Care division increased by 22.5 % to EUR 151.2 million (9M 2012: EUR 123.5 million). The EBITDA margin improved to 20.5 % compared to 18.4 % in the previous year. Flavor & Nutrition Division Flavor & Nutrition increased sales by 2.5 % during the reporting period to EUR 664.9 million (9M 2012: EUR 649.0 million). At local currency, this corresponds to a 6.2 % increase. The division benefited from especially high demand for products from the Sweet and Savory application areas. The Consumer Health business unit also developed positively. Regionally, Flavor & Nutrition achieved its greatest sales growth in Latin America with an increase of 16 % at local currency. The second strongest region was Asia/Pacific with an increase of 7 % at local currency, followed by North America which grew 6 % at local currency. The positive developments from the first half also carried over in the EAME region. Solid demand was seen in the Emerging Markets of Eastern Europe, the Near and Middle East as well as in the established markets of Western Europe, which resulted in a sales increase of 4 % at local currency for the region. Flavor & Nutrition generated an EBITDA of EUR 139.0 million (9M 2012: EUR 140.9 million). The slight decrease compared to the previous year's period can be attributed to the development of the sales organization in Asia/Pacific as well as costs related to new R&D projects. Despite these investments, the EBITDA margin of 20.9 % (9M 2012: 21.7 %) remains at a good level. Confident Outlook for the Fourth Quarter Thanks to the strong sales and earnings developments of the first nine months, Symrise has entered well-positioned into the fourth quarter. The Group expects sustained robust demand and positive market dynamics for all regions and in both divisions. As a result, Symrise is confirming its goal of once more growing faster than the global market for fragrances and flavors in 2013. Beyond this, Symrise aims to remain among the most profitable companies in the industry. The Group continues to strive for the objectives it set for the fiscal year 2020: Sales growth (CAGR) should amount to between 5 and 7 % per year and the EBITDA margin should develop within the range of 19 and 22 %. Key Figures Of The Group: 9M 2012 CHANGE IN % (ADJUST- 9M 9M CHANGE at local EUR MILLION ED)*1 2012 2013 IN % currency Sales 1,319.6 1,401.2 6.2 9.9 EBITDA 270.4 264.4 290.2 10 12 EBITDA margin in % 20.0 20.7 EBIT 206.2 200.2 223.8 12 14 EBIT margin in % 15.2 16.0 Net income 129.7 125.9 139.9 11 Earnings per share in EUR 1.10 1.07 1.18 11 CAPEX 47.0 114.2 143 Operating cash flow 138.0 176.2 28 Scentâ??&â??Care Sales 670.6 736.3 9.8 13.5 EBITDA 126.1 123.5 151.2 EBITDA margin in % 18.4 20.5 Flavorâ??&â??Nutrition Sales 649.0 664.9 2.5 6.2 EBITDA 144.3 140.9 139.0 EBITDA margin in % 21.7 20.9 DEC. 31, SEP 30, EUR MILLION 2012*1 2013 Balance sheet total 2,150.2 2,231.4 Equity ratio in % 40.9 41.8 Net debt (incl. pension provisions and similar obligations)/EBITDA ratio 2.4 2.2 Employees FTE*â??2 5,669 5,962 *1 previous year's figures have been adjusted as a result of changes to accounting policies IAS 19 rev. *2 not including apprentices and trainees; FTE = Full Time Equivalent About Symrise: Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients and raw materials as well as functional ingredients. Its clients include manufacturers of perfumes, cosmetics, food and beverages, the pharmaceutical industry and producers of nutritional supplements. Its sales of EUR 1.735 billion in 2012 place Symrise among the top four companies in the global flavors and fragrances market. Headquartered in Holzminden, Germany, the Group is represented in over 35 countries in Europe, Africa, the Middle East, Asia, the United States and Latin America. Symrise works with its clients to develop new ideas and market-ready concepts for products that form an indispensable part of everyday life. Economic success and corporate responsibility are inextricably linked as part of this process. Symrise thus takes sustainability into account in every part of its corporate strategy. The company was awarded the German Sustainability Award in 2012. Symrise - always inspiring more. Media contact: Bernhard Kott Phone +49 (0)5531 90-1721 bernhard.kott@symrise.com Investor contact: Tobias Erfurth Phone +49 (0)5531 90-1879 tobias.erfurth@symrise.com End of Corporate News --------------------------------------------------------------------- 05.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Symrise AG MühlenfeldstraÃ?e 1 37603 Holzminden Germany Phone: +49 (0)5531 90 0 E-mail: ir@symrise.com Internet: www.symrise.com ISIN: DE000SYM9999 WKN: SYM999 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 237749 05.11.2013