After a strong third quarter, Symrise AG is again raising its guidance for 2022 as a whole.
Despite a still challenging market environment, growth across all divisions was much stronger than expected, according to company officials. After nine months, Symrise recorded organic sales growth of 11.3% (Q3 2022, 13.6%). Taking into account portfolio effects such as acquisitions or divestitures as well as currency translation effects, group sales in the first nine months of the year increased to $3.499 million (9M 2021: $2.888 million of dollars). This corresponds to a growth of 21.2% compared to the same period of the previous year and 26.4% compared to the same quarter of the previous year.
Following strong business development in the first nine months, the company is currently pursuing organic sales growth of over 10% (previously: well above 7%) for the whole of 2022. Profitability remains at a high level in 2022, with an earnings before interest, taxes, depreciation and amortization margin of approximately 21%. The goal is to continue to combine organic and inorganic growth in the form of targeted strategic acquisitions with strict cost management and price increases, according to the company.
By 2025, group sales are expected to grow from $5.51 billion to $6.012 billion, supported by 5-7% annual growth (CAGR) and targeted acquisitions. Profitability remains within a target corridor of 20 to 23% (EBITDA margin) in the long term.
“In a still difficult and volatile market environment, we have once again managed to continue our growth,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “Our diverse portfolio as well as our broad regional presence and customer base have been key factors in achieving this. Additionally, significantly increased demand in our core competencies such as cosmetics and pet food contributed to significant organic growth. We were also able to further accelerate our growth by acquiring Giraffe Foods, Schaffelaarbos, Wing Pet Food, Neroli and Romani, which significantly strengthened our product line.
Despite the uncertainties resulting from the war in Ukraine, rising commodity prices and persistent global supply bottlenecks, Symrise is well positioned for continued growth. The company relies on its robust business model, continuous innovations, and broad regional presence and customer base.
Taste, nutrition and health
In the first nine months of the year, the Taste, Nutrition & Health segment increased its sales organically by 14.5% compared to the previous year. This corresponds to organic growth of 18.0% in the third quarter. Adjusted for portfolio and currency effects, segment sales for the first nine months increased to $2.186 million (9M 2021: $1,752 million). The acquisitions of Giraffe Foods/Canada, Schaffelaarbos/Netherlands and Wing Pet Food/China, as well as the sale of the dye and Velcorin activities, generated a positive portfolio effect of approximately $67.2 million.
In the Food & Beverage division, leisure activities and out-of-home consumption led to good demand for beverages and savory products. The Latin America and North America regions show the highest growth rates. The Sweet business in Latin America recorded high double-digit percentage growth. The Naturals business unit increased its sales, particularly in North America.
The Pet Food division relentlessly continued its high double-digit growth. All regions contributed to the strong sales performance with double-digit growth rates. With successful capacity expansions in China, North America, Brazil and France, Symrise has laid the foundation for accelerated expansion of the pet food business.
Strong growth in sales of active cosmetic ingredients in fragrances and skincare
Scent & Care, the perfumery applications, fragrances and cosmetic ingredients business, achieved organic sales growth of 6.4% in the first nine months of 2022 and 6.7% in the third quarter. Adjusting for portfolio and currency effects, current period sales were $1.321 million (9M 2021: $1,136 million). The acquisitions of the fragrance businesses of Sensient, Neroli and Romani contributed $39.123 million to segment sales.
The Fragrance division increased its sales by a single-digit percentage in the first nine months. The Fine Fragrances business unit continued its dynamic development, once again achieving high organic growth after a strong previous year.
In the Consumer Fragrance and Oral Care business units, demand for hygiene and oral hygiene products was lower than in the previous year. Applications in the household products area continued to perform well.
The Aroma Molecules division achieved organic single-digit sales growth. Demand for perfumery ingredients recovered markedly compared to the same period of the previous year.
With double-digit organic growth, sales of the Cosmetic Ingredients division performed very well: All regions recorded significant sales increases. The sun protection products business unit continues to be very dynamic and displays great project momentum.