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DGAP-News: Symrise AG: Symrise Continues to Grow and Significantly Increases Profitability

August 6, 2014

DGAP-News: Symrise AG / Key word(s): Half Year Results/Quarter Results Symrise AG: Symrise Continues to Grow and Significantly Increases Profitability 07.08.2014 / 07:01 --------------------------------------------------------------------- Report for the First Half of 2014 - EBITDAN rises by 9 % to EUR 209 million - EBITDAN margin reaches 22.2 % - Group sales up by approximately 6 % at local currency - Earnings per share before special items up 14 % to EUR 0.90 - Integration of Diana Group initiated Symrise AG remained on its successful course during the first half of 2014. The Group increased sales at local currency in all regions, significantly raised the operating result and completed the acquisition of French Diana Group as planned. One-off non-recurring special items in connection with M&A activities affected the operating result with EUR 3.4 million and the financial result with EUR 7.5 million. Earnings before interest, taxes, depreciation and amortization without special items (EBITDAN) increased significantly by 9 % to EUR 209 million (H1 2013: EUR 191 million). The corresponding normalized EBITDA margin amounted to 22.2 %, compared to 20.5 % in the prior year period. Furthermore, Symrise increased its sales in the first six months to EUR 942 million (H1 2013: EUR 935 million). At local currency, sales grew by 6 %. At the end of July, Symrise completed the acquisition of French Diana Group, which will first be consolidated from July 2014 onwards. The integration process has already been initiated. Dr Heinz-JÜrgen Bertram, CEO of Symrise AG: "Symrise is entering the second half of the year with full steam ahead. In the first six months we have grown significantly and improved our profitability even further. High capacity utilization, our continued cost discipline and, above all, our focus on high-margin business were significantly contributing to this development. By successfully completing the acquisition of Diana at the end of July, we have finalized the largest acquisition in our company's history on schedule. We also completed the acquisition financing in record time. This allows us to now fully concentrate on the integration process in the areas of research and development as well as production and sales. I am certain that we will further accelerate our profitable growth together with Diana." Sales Increase of 6 % at Local Currency Symrise increased sales in the first half-year by 6 % at local currency to EUR 942 million. In reporting currency sales growth amounted to 1 %. Strong impulses came from all regions and both divisions. With a sales increase of 12 % at local currency, Latin America recorded the strongest growth dynamics. EAME grew sales by 5 %, Asia/Pacific and North America increased sales by 6 % and 4 % respectively. Normalized EBITDA Margin Improves to 22.2 % Good capacity utilization during the first six months, consistent cost discipline and the focus on high-margin business significantly contributed to the earnings increase. In the reporting period one-off non-recurring items of EUR 3.4 million occurred in connection with the acquisition and integration of the Diana Group. These affect the Flavor & Nutrition segment only. Group earnings before interest, taxes, depreciation and amortization normalized for special items (EBITDAN) increased by 9 % to EUR 209 million (H1 2013: EUR 191 million). The normalized EBITDA margin improved on a high level by 1.7 percentage points to 22.2 % (H1 2013: 20.5 %). In addition, the financing of the acquisition led to one-off costs in the amount of EUR 7.5 million which are attributed to the financial result. Net income for the period came in at EUR 101 million compared to EUR 93 million in the prior year. Earnings per share rose from EUR 0.79 to EUR 0.84; on a normalized basis, earnings per share in the first half of 2014 amounted to EUR 0.90 per share. This corresponds to an increase of 14 %. Significant Rise in Cash Flow from Operating Activities Cash flow from operating activities also increased significantly to EUR 109 million (H1 2013: EUR 77 million). As of June 30, 2014, the ratio of net debt including pension provisions to EBITDA amounted to 1.1. This represents a significant improvement as compared to 2.0 at the end of 2013 and is a result of the capital increase carried out in May. Sales Growth of 9 % in Emerging Markets Symrise once again benefited from its strong presence in the Emerging Markets during the first half-year. The company recorded a sales increase of 9 % at local currency in these particularly dynamic markets, thereby exceeding the Group's overall growth rate. The share of Group sales attributed to the Emerging Markets amounted to 48 %, the same level as in the prior year period. At local currency, the share already came to more than 50 %. Scent & Care The Scent & Care segment extended its business in every region and boosted its sales by 6 % at local currency. In reporting currency this represents an increase of 0.5 % to EUR 493 million compared to the exceptionally strong prior year (H1 2013: EUR 490 million). Strong impulses were again seen in the Fragrances and Life Essentials divisions, which both realized high single-digit growth rates. With an increase of 12 % at local currency, Scent & Care generated significant sales growth in Latin America. Furthermore, the division increased its sales in EAME by 5 % and by 4 % in both, North America and Asia/Pacific. Scent & Care increased its EBITDA to EUR 110 million (H1 2013: EUR 98 million). The EBITDA margin rose from 20.1 % to 22.3 %. Flavor & Nutrition The Flavor & Nutrition segment generated a sales growth of 6 % at local currency to EUR 449 million (H1 2013: EUR 444 million). In reporting currency this corresponds to a sales increase of 1 %. Similar to Scent & Care, the Emerging Markets made an important contribution to the division's development. Latin America was the fastest-growing region, generating sales growth of 12 % at local currency. In Asia/Pacific, Flavor & Nutrition achieved sales growth of 8 % at local currency. In EAME, sales rose by 5 % in local currency despite high comparable figures from the prior year period. North America built on the positive development of the preceding months and grew by 3 % at local currency. Flavor & Nutrition generated an EBITDA before special items of EUR 99 million during the reporting period (H1 2013: EUR 93 million). The normalized EBITDA margin amounted to 22.1 % (H1 2013: 20.9 %). Diana Integration Initiated Following Completion of Transaction Following the announcement of the planned acquisition of Diana Group in April, Symrise successfully implemented several measures in the second quarter for financing the transaction. In May, Symrise generated proceeds of around EUR 400 million from a capital increase based on authorized capital. In addition, the company secured short and medium-term borrowings from its primary banks amounting to EUR 400 million. Symrise also successfully placed a EUR 500 million long-term bond that was oversubscribed several times. Symrise used this comprehensive financing concept totaling EUR 1.3 billion at highly attractive conditions to finance the largest acquisition in its history. The transaction was completed on July 29, 2014 following the corresponding approvals. Symrise subsequently introduced initial measures for integration. Hereby, the focus lies on the integration of Diana as an independent division in the Flavor & Nutrition segment, which is responsible for all activities in the area of nutrition. Symrise and Diana will continue to focus intensively on their customers and research projects. Diana will be consolidated for the first time in the third quarter of 2014. Symrise will continue to report at the level of both Flavor & Nutrition and Scent & Care segments. Positive Outlook for 2014 Following a successful first half-year, Symrise confirms its outlook for the 2014 fiscal year. The Group further expects solid demand and a positive market development in all regions and in both divisions. For 2014 Symrise is furthermore confident to outperform local currency growth of the global market for fragrances and flavors. Furthermore, Symrise continues to aim at an EBITDA margin of more than 20 %. The objectives defined for the 2020 fiscal year continue to apply to the expanded Symrise AG, including the addition of the Diana Group: Symrise aims at an annual sales growth (CAGR) between 5 % and 7 % and an EBITDA margin between 19 % and 22 %. Key Figures of the Group Change in HY 2014 % HY HY norma- Change at local In EUR million 2013 2014 lized1 in % currency Sales 934.7 941.8 941.8 0.8 5.9 EBITDA 191.2 205.6 209.0 9 13 EBITDA margin in % 20.5 21.8 22.2 EBIT 147.4 161.9 165.3 12 17 EBIT margin in % 15.8 17.2 17.5 Net income for the period 93.4 101.3 109.1 17 Earnings per in share EUR 0.79 0.84 0.90 14 Investments/ Acquisitions 98.5 30.4 30.4 -69 Cash flow from operating activities 77.0 108.9 108.9 41 Scent?&?Care Sales 490.3 492.5 0.5 5.8 EBITDA 98.4 109.8 EBITDA margin in % 20.1 22.3 Flavor?&?Nutri- tion Sales 444.4 449.3 449.3 1.1 6.1 EBITDA 92.8 95.8 99.2 EBITDA margin in % 20.9 21.3 22.1 December June 30, 31, 2013 2014 EUR Balance sheet total million 2,210.4 2,638.2 Equity ratio in % 43.0 51.0 Net debt (incl. pension provisions and similar obligations)/EBITDA ratio 2.0 1.1 Employees FTE?2 5,959 6,023 1 One-off non-recurring items include transaction and integration costs as well as one-off valuation effects related to business combinations. 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 more than EUR 1.8 billion in 2013 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. In 2013, Symrise was certified as a "Green Company" by DQS. Symrise - always inspiring more. Media contact: Bernhard Kott Tel. +49 (0)5531 90-1721 bernhard.kott@symrise.com Investor contact: Tobias Erfurth Tel. +49 (0)5531 90-1879 tobias.erfurth@symrise.com --------------------------------------------------------------------- 07.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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 MÜhlenfeldstraße 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 --------------------------------------------------------------------- 281150 07.08.2014


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