DGAP-News: Symrise AG Achieves Sales Increase and Gains

DGAP-News: Symrise AG / Key word(s): Interim Report Symrise AG Achieves Sales Increase and Gains Market Share at Ongoing High Profitability 07.08.2013 / 07:00 --------------------------------------------------------------------- - Group sales rise by 10 % at local currency - Emerging Markets show strongest growth with 12 % increase - EBITDA increases by 11 % at local currency - Continuing investments in future growth Holzminden, August 7, 2013 Symrise AG further increased its pace in the second quarter and notably strengthened sales and earnings in the first half of 2013. The Group grew in both divisions and across all regions and increased sales to EUR 934.7 million (H1 2012: EUR 871.6 million). This corresponds to an increase of 9.5 % at local currency. Earnings before interest, tax, depreciation and amortization (EBITDA) rose to EUR 191.2 million. With an EBITDA margin of 20.5 %, Symrise once again achieved a high profitability level despite continuing investments in capacity and personnel expansions. Dr. Heinz-Jürgen Bertram, CEO of Symrise AG: 'Symrise also substantially grew in the second quarter - achieving strong figures in both the emerging and developed markets. With an increase of 14 % at local currency, North America was the region posting the strongest sales growth. EAME, which was impacted last year, saw a good recovery and also achieved solid sales growth. In our operations, we continued at full speed: We introduced a number of new cosmetic ingredients and consolidated our powder mixing operations for flavor manufacturing under one roof at our headquarters in Holzminden; we also brought additional capacities into operations. After a robust start in the first half, we are entering into the second half of our anniversary year from a strong position. We will continue to implement our business expansion plans, adding new and innovative product solutions to our portfolio. In addition, we will enhance our position in both, industrialized nations and Emerging Markets.' Growth in all Regions In the first half of 2013, Symrise increased sales by 7.2 % in the reporting currency to EUR 934.7 million (H1 2012: EUR 871.6 million). At local currency, sales were up by 9.5 %. Every region and both divisions contributed to this result. North America posted the strongest growth with sales up by 13 % (14 % at local currency) in the first half. The second largest gains were made in Asia/Pacific, with a sales increase of 10 % (13 % at local currency). Compared to the previous year, notably improved figures were recorded in EAME: the region achieved a pleasing sales growth of 5 % (6 % at local currency) thanks to especially good dynamics in Eastern Europe. As expected, Latin America developed modestly compared to its above-average growth in previous years, realizing a sales growth of 3 % (10 % at local currency). EBITDA of EUR 191.2 Million Reflects Sales Growth and Investments Symrise's profitability especially benefited from the company's robust sales in the first half of 2013. A slight relaxation in the prices for chemical raw materials also had a positive impact. By contrast, expenses increased for the continued expansion of capacities in sales as well as in research and development. In fact, R&D expenses saw the strongest increase and grew by 13 % year on year due to the full project pipeline. Nonetheless, earnings before interest, tax, depreciation and amortization (EBITDA) rose by 11 % at local currency to EUR 191.2 million (H1 2012: EUR 174.0 million). Symrise therefore remained highly profitable, achieving an EBITDA margin of 20.5 %. Net income for the reporting period rose by 12 % to EUR 93.4 million (H1 2012: EUR 83.5 million). Earnings per share correspondingly increased to EUR 0.79 after EUR 0.71 in the first half of 2012. High Utilization Supports Cash Flow from Operating Activities Cash flow from operating activities increased by 23 % to EUR 77.0 million (H1 2012: EUR 62.5 million). This was mainly due to the strong increase in sales and solid earnings in the first half. The ratio of net debt including pension provisions to EBITDA amounted to 2.5 as of June 30, 2013; despite the dividend distribution totaling EUR 77 million the ratio thus only slightly changed compared to the level of the year end 2012 (Dec. 31, 2012: 2.4). Emerging Markets Post High Sales Growth of 12 % As part of its strategy, which aims at profitable growth, Symrise continues to advance its activities in the Emerging Markets. Symrise grew sales by 12 % at local currency in these rapidly expanding markets, thereby exceeding the Group's overall growth rate. The Emerging Markets' share of total sales rose to 48 % (H1 2012: 47 %). Scent & Care Division The Scent & Care division expanded its business in every region and boosted its sales to EUR 490.3 million. Compared to the prior year period, this corresponds to a sales increase of 10.3 % (12.5 % at local currency). The production capacities for menthol, which were expanded in 2012, have been well utilized. Scent & Care also benefited from high demand in the areas of Oral Care and Fine Fragrances as well as cosmetic ingredients. In the second quarter, Symrise was once again recognized for its innovative strength and received three awards for new substances. Scent & Care achieved its strongest growth in North America with sales up 18 % at local currency; greatest contributions came from the Aroma Molecules and Fragrances business units. The fragrance activities acquired from Belmay in 2012 also contributed. In Asia/Pacific, the division generated a double-digit sales growth of 17 % at local currency. EAME increased sales by 9 % at local currency and Latin America was up by 8 % at local currency. Scent & Care increased its EBITDA by 21 % to EUR 98.4 million (H1 2012: EUR 81.0 million). The EBITDA margin was at a pleasing level of 20.1 % (H1 2012: 18.2 %). Flavor & Nutrition Division Flavor & Nutrition increased sales by 4 % to EUR 444.4 million (H1 2012: EUR 427.2 million). At local currency, this corresponds to a growth of 7 %. Applications for culinary products and snacks as well as Consumer Health particularly benefited from high demand. The strongest growth was recorded in Latin America with a sales increase of 13 % at local currency. The second-strongest region was Asia/Pacific, which posted 9 % growth at local currency. In North America, sales were up by respectable 8 % at local currency, despite high figures from the previous year. The EAME region continued its positive developments from the first quarter and increased sales by 4 % at local currency. Ample demand in emerging markets of Eastern Europe as well as in the established Western European markets contributed to the good growth. To the contrary, demand was weaker in Southern European countries. Flavor & Nutrition generated an EBITDA of EUR 92.8 million (H1 2012: EUR 93.0 million). Despite sustained high prices for natural raw materials and additional investments relating to new customer and research projects, EBITDA remained in line with the previous year. The EBITDA margin of 20.9 % (H1 2012: 21.8 %) was slightly higher than the Group's figure. Outlook Overall, Symrise expects robust demand to continue in the second half of 2013. Apart from some regional markets, the Group also expects good dynamics across all regions. Symrise therefore confirms its goal for 2013 to once again notably exceed growth of the global market for fragrances and flavors, which is estimated to be between 2 % and 3 %. Additionally, Symrise continues to work systematically towards its medium-term targets set for the 2020 fiscal year. According to these, the Group wants to achieve an annual sales growth (CAGR) of between 5 % and 7 % with an EBITDA margin between 19 % and 22 %. Key Figures Of The Group H1 2012 1 CHANGE IN % (IAS 19 H1 H1 CHANGE at local EUR MILLION rev.) 2012 2013 IN % currency Sales 871.6 934.7 7.2 9.5 EBITDA 179.2 174.0 191.2 10 11 EBITDA margin in % 20.0 20.5 EBIT 136.0 130.8 147.4 13 14 EBIT margin in % 15.0 15.8 Net income 86.7 83.5 93.4 12 Earnings in per share EUR 0.73 0.71 0.79 12 CAPEX 31.6 98.5 212 Operating cash flow 62.5 77.0 23 Scentâ??&â??Care Sales 444.4 490.3 10.3 12.5 EBITDA 83.2 81.0 98.4 EBITDA margin in % 18.2 20.1 Flavorâ??&â??Nutrition Sales 427.2 444.4 4.0 6.5 EBITDA 95.9 93.0 92.8 EBITDA margin in % 21.8 20.9 1 previous year's figures have been adjusted as a result of changes to accounting policies DEC. 31, JUNE 30, 2012 1 2013 EUR Balance sheet total million 2,150.2 2,263.7 Equity ratio in % 40.9 39.9 Net debt (incl. pension prov.and similar obligations)/EBITDA ratio 2.4 2.5 Employees FTE â??2 5,669 5,930 1 previous year's figures have been adjusted as a result of changes to accounting policies. 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: Investor contact: Bernhard Kott Tobias Erfurth Phone +49 (0)5531 90-1721 Phone +49 (0)5531 90-1879 bernhard.kott@symrise.com tobias.erfurth@symrise.com End of Corporate News --------------------------------------------------------------------- 07.08.2013 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 --------------------------------------------------------------------- 224530 07.08.2013