EQS-News: Symrise on a profitable growth course in a challenging environment
Source: EQS
— Group sales increase by 6.3 % to € 2,565 million; organic growth of 11.5 % — EBITDA margin of 20.7 % significantly higher than the previous year — Higher profitability due to strict cost management — Business free cash flow more than doubled to € 226 million — At the same time, profitability measured by the EBITDA margin of 20.7 % was significantly higher than the previous year’s adjusted figure of 19.7 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to € 530 million, an increase of 11.5 % compared to the previous year’s adjusted figure. The main drivers of profitability were slightly favorable material usage and, especially, the efficiency program initiated in the first quarter that was implemented consistently in the second quarter and has already generated around 50 % of the target savings of around € 50 million. Despite the current volatile market environment as a result of geopolitical tensions and continued high inflation overall, In light of its good first-half performance, In the long term, the company aims to increase its sales to € 7.5 to 8.0 billion by 2028. Annual growth of 5 to 7 % (CAGR) as well as targeted acquisitions are expected to contribute to this. Profitability (EBITDA margin) should remain within a target corridor of 20 to 23 %. Taste, Nutrition & Health segment Taste, Nutrition & Health achieved organic sales growth of 10.0 % in the first half of 2024. Taking into account portfolio and exchange rate effects, the segment’s sales in the reporting currency amounted to € 1,572 million, an increase of 2.9 % (H1 2023: € 1,527 million). The portfolio effect from the 2024 divestment of the In the Food & Beverage division, demand for savory products particularly developed strongly to deliver double-digit organic growth. Strong growth was recorded in the EAME ( The Pet Food division was also able to sustain its growth trend. Sales development in the In the first half of 2024, sales development in the Aqua Feed division was characterized by declining organic growth. In the course of further portfolio optimization with focus on high-margin growth areas, The probiotics business, which includes the majority interest in the listed company The segment’s EBITDA amounted to € 348 million (H1 2023: € 335 million), an increase of 3.8 %. The increase was mainly attributable to profitable sales growth and a slight decline in the raw material cost ratio. The EBITDA margin was 22.1 %, which was higher than the previous year’s figure of 21.9 %. Scent & Care segment Scent & Care achieved organic sales growth of 14.1 %. Taking into account exchange rate effects, sales increased to € 993 million in the reporting currency, 12.1 % higher than the same period of the previous year (H1 2023: € 886 million). The Fragrance division achieved very strong organic growth. The Fine Fragrances business unit in particular continued its dynamic development and followed its strong performance from previous year with renewed double-digit percentage organic growth. The growth rates in the Sales development in the Aroma Molecules division recovered significantly in the first half of 2024. Although the market environment remained difficult, the resumption of production at Sales by the Cosmetic Ingredients division continued to develop very well in the first six months of the current year, again posting double-digit percentage organic growth. The EAME, The segment generated EBITDA of € 182 million, a significant increase of € 42 million compared to the previous year’s adjusted figure of € 140 million. The segment’s EBITDA margin was 18.3 %, 2.5 percentage points higher than the previous year’s adjusted figure of 15.8 %. Consolidated net income and earnings per share The consolidated net income attributable to the shareholders of Cash flow At € 288 million, cash flow from operating activities for the first half of 2024 was € 144 million higher than in the previous year (€ 144 million), mainly due to an improvement in earnings in the normal course of operations and lower working capital. Business free cash flow more than doubled in the first six months and amounted to € 226 million, up € 120 million from € 106 million in the same period of the previous year. As a percentage of sales, business free cash flow was 8.8 % (H1 2023: 4.4 %). The Interim Group Report of Additional features: File: Factsheet_EN_H1_2024
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Language: | English |
Company: | |
Mühlenfeldstraße 1 | |
37603 Holzminden | |
Phone: | +49 (0)5531 90 0 |
E-mail: | ir@symrise.com |
Internet: | www.symrise.com |
ISIN: | DE000SYM9999, DE000SYM7787, DE000SYM7704 |
WKN: | SYM999 |
Indices: | DAX |
Listed: | Regulated Market in |
EQS News ID: | 1958483 |
End of News |
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1958483 01.08.2024 CET/CEST