Symrise reports robust growth driven by taste, nutrition, health and pet food categories
(Image credit: Symrise).Symrise has reported continuous growth in the first nine months of this year, recording a rise of 11.1% in organic sales. The German flavor and fragrance maker expects its organic sales growth for the full year to be around 7%.
Despite challenging market conditions, the group revenue is reportedly €3,824 million (US$4,129 million) in the first nine months.
The company’s Taste, Nutrition & Health segment saw a robust increase (10.4%) in organic numbers. At the same time, the Food and Beverage division achieved strong double-digit growth, with sweet and savory products driving the rise.
Jean-Yves Parisot, CEO of Symrise AG, says: “Symrise was able to seamlessly continue the positive business development of the past months in the third quarter. Despite the current volatile market environment due to geopolitical tensions and continued inflation pressure, we are confident for the rest of the year and expect robust demand.”
“Our diversified portfolio and broad, international footprint will continue to help us realize our growth potential and create sustainable value this year. We are firmly convinced that we have set the right course for the future.”
F&B and pet food drive sales
Among geographical regions, Latin America showed the strongest growth, followed by Asia-Pacific. The company’s Food and Beverage, Fragrance, Aroma Molecules and Pet Food business units encouraged this increase.
The F&B segment remained promising even as the company observed a €27 million (US$29 million) loss due to the sale of a part of its business in the UK.
The company’s Pet Food division also recorded stable growth and saw dynamic sales in Asia-Pacific and Latin America.
Symrise’s pet food division recorded stable growth and saw dynamic sales in Asia-Pacific and Latin America.Symrise’s Aqua Feed business unit saw diminished organic growth. The company has plans to sell the business to sharpen focus on more profitable areas.
The probiotics segment, which includes the company’s majority stake in the Swedish player Probi AB, contributed slightly to its overall growth, which was mainly driven by sales in Europe, Africa and the Middle East.
The multinational also saw increased organic sales in its Fragrance segment, particularly in the Consumer Fragrance Application area.
Long-term outlook
In August this year, Symrise reported a 6.3% increase in group sales to €2.57 billion (US$2.78 billion), with its Taste, Nutrition & Health business achieving 10% organic growth in its first half-year results.
According to the company, the main drivers for overall profitability were “favorable material usage” and its efficiency program, which was initiated in the first quarter and implemented in the second.
Symrise’s long-term growth outlook remains unchanged. The company expects an EBITDA margin between 20% and 23%.
