Symrise AG : Sales and Earnings up 9 % in the First Nine Months

In the third quarter, Symrise AG successfully built on its dynamic perfor-mance from the first half of the year. In the first nine months of 2012, the Group generated sales of € 1,320 million (9M 2011: € 1,206 million), ex-ceeding the previous year's figure by 9 % (6 % at local currency). Both divisions provided strong impetus for growth. Symrise experienced above-average growth in the emerging markets, with Latin America per-forming particularly well. The Group also recorded considerable sales in-creases in Asia and North America. Symrise remained highly profitable despite high raw materials prices and start-up costs for its new menthol production plant. The Group increased its EBITDA by 9 % to € 264 million (9M 2011: € 243 million) and achieved an EBITDA margin of 20 %.

Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: "We achieved considerable increases in sales and earnings throughout the Group in the first nine months of this year. The emerging markets provided particularly strong impetus for growth and accounted for 48 % of sales for the very first time. In terms of earnings, we coped well with a number of anticipated one-off expenses. For the remaining weeks of 2012, we continue to remain confident, although the sovereign debt crisis is having a growing impact on both, the Eu-ropean and also the global economy. However, with our balanced portfolio of customer groups and products, as well as our regional presence, we are, in an excellent position to make good progress even during economically weaker phases. We therefore confirm our targets for the fiscal year of 2012. We will continue to pursue our strategy which aims at sustainable, profitable growth."

Strong Growth in Group Sales

Symrise increased its sales by 9 % to € 1,320 million in the first nine months of 2012 (9M 2011: € 1,206 million). Both divisions significantly contributed towards this increase. In the third quarter, the Group succeeded in increasing sales by 14 % (9 % at local currency) to € 448 million, compared to € 395 million in the same quarter of the previous year.
With a 20 % sales increase (21 % at local currency) Latin America provided the Group's strongest growth in the reporting period.  Developments in the Asia/Pacific region were also positive, allowing Symrise to boost its sales there by 15 % (8 % at local currency). In North America sales were up 19 %  (8 % at local currency). Economic caution influenced sales in the Western European countries of the EAME region as a result of the European sovereign debt crisis. However, positive impetus came from Eastern Europe, Russia and Africa. Compared to the prior year period, sales were slightly up by 1 % (1 % at local currency).

EBITDA Margin of 20 %

Symrise increased its EBITDA by 9 % in the first nine months to € 264 million (9M 2011: € 243 million). Raw material costs remained on an overall high level. As expected, the Group also had start-up costs for the new menthol production plant in Holzminden, Despite these factors, Symrise successfully maintained its profitability and posted an EBITDA margin of 20 % for the reporting period (9M 2011: 20.1 %).
Net income rose by 7 % compared to the first nine months of 2012 to € 126 mil-lion (9M 2011: € 117 million). Earnings per share rose by 8 cents to € 1.07 (9M 2011: € 0.99).

Cash Flow from Operating Activities above Last Year's Level

Due to positive business developments the cash flow from operating activities increased from  € 130 million in the previous year to € 138 million in the reporting period. The Group has the necessary liquidity and financial strength to fully implement its strategy. The ratio of net debt (incl. pension provisions) to EBITDA fell to 2.1 (December 31, 2011: 2.2).

Sales Share from Emerging Markets Reaches a New High of 48 %

During the first three quarters, Symrise continued to expand its strong market position in the emerging markets. With a sales increase of 11 % at local curren-cy, Symrise outperformed the Group's average growth rate in these regions. The company experienced particularly strong demand in Latin America, China, Russia and the Middle East. The share of sales generated in the emerging markets increased by two percentage points compared to the first nine months of 2011 and reached the 48 % mark for the first time (9M 2011: 46 %).

Strong Growth with Large Global Customers

Symrise has a balanced portfolio of small-scale local, medium-sized regional and large global customers. Global producers of food and consumer goods form a strategic focal point within the customer groups. Symrise increased its sales with its global customers by 11 % at local currency, outperforming the Group's total growth rate. Both divisions further expanded their business with global customers. Scent & Care reported a 12 % increase in sales at local cur-rency. Flavor & Nutrition grew sales with global customers by 9 %. Overall, business with major international customers accounted for 32 % of sales in the reporting period (9M 2011: 31 %).

Scent & Care

The Scent & Care division posted sales of € 671 million for the first nine months (9M 2011: € 610 million) - a 10 % increase on the previous year's figure. At lo-cal currency, sales were up 7 %. Scent & Care particularly continued rapid growth in the Life Essentials, Oral Care and Fine Fragrances application areas.
Latin America was by far the strongest region, realizing a 32 % sales increase at local currency. Scent & Care posted double-digit growth rates in all applica-tion areas. North America was the second strongest region, generating a sales growth of 9 % at local currency. Business with global customers was primarily responsible for driving this growth. Sales in Asia/Pacific rose by 7 % at local currency compared to the prior year period. This growth was mainly driven by high demand in Household, Oral Care and Cosmetic Ingredients. Despite posi-tive impetus from Africa and Eastern Europe sales fell by 3 % at local currency in the EAME region due to the European sovereign debt crisis.
Scent & Care increased its EBITDA in the reporting period by 5 % to € 124 mil-lion (9M 2011: € 117 million). Despite start-up costs for the new menthol plant and high raw materials costs, the EBITDA margin remained on a good level at 18.4 % (9M 2011: 19.2 %).

Flavor & Nutrition

Flavor & Nutrition grew its sales by 9 % in the first nine months to € 649 million (9M 2011: € 597 million). At local currency, this corresponded to a growth of 5 %. The division was able to boost its sales in all regions.
The Asia/Pacific and North America regions were responsible for the strongest growth in the division's sales (8 % each at local currency). Beverages and sa-vory applications, in particular, generated pleasing growth in the Asia/Pacific region. In North America, Flavor & Nutrition recorded growth in the upper sin-gle-digit to double-digit percentage range in all application areas. In Latin America, Flavor & Nutrition expanded its sales by 5 % at local currency, with Brazil, Argentina and Chile showing the strongest growth. Sales climbed by 4 % at local currency in EAME, driven primarily by substantial double-digit growth rates in Russia. By contrast, demand in Western European markets was no-ticeably weak due to the sovereign debt crisis.
Flavor & Nutrition improved its EBITDA by 12 % in the first nine months to
€ 141 million (9M 2011: € 125 million). At 21.7 %, the EBITDA margin exceeded the prior year figure (9M 2011: 21.0 %).

Expectations for the Full Year Confirmed

In the third quarter, an economic slowdown emerged in many economic regions which will continue in the fourth quarter. Despite this current uncertainty, Sym-rise is confident to reach its targets for the full year. The Group aims at a sales growth of between 3 % and 5 % at local currency and at an EBITDA margin of around 20 %. Symrise has two strong divisions, a balanced customer base, an innovative and diversified product portfolio and is geographically very well di-versified. This places the Group in a very good position to continue its sustain-able growth.

In the third quarter, Symrise AG successfully built on its dynamic perfor-mance from the first half of the year. In the first nine months of 2012, the Group generated sales of € 1,320 million (9M 2011: € 1,206 million), ex-ceeding the previous year's figure by 9 % (6 % at local currency). Both divisions provided strong impetus for growth. Symrise experienced above-average growth in the emerging markets, with Latin America per-forming particularly well. The Group also recorded considerable sales in-creases in Asia and North America. Symrise remained highly profitable despite high raw materials prices and start-up costs for its new menthol production plant. The Group increased its EBITDA by 9 % to € 264 million (9M 2011: € 243 million) and achieved an EBITDA margin of 20 %.
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, said: "We achieved considerable increases in sales and earnings throughout the Group in the first nine months of this year. The emerging markets provided particularly strong impetus for growth and accounted for 48 % of sales for the very first time. In terms of earnings, we coped well with a number of anticipated one-off expenses. For the remaining weeks of 2012, we continue to remain confident, although the sovereign debt crisis is having a growing impact on both, the Eu-ropean and also the global economy. However, with our balanced portfolio of customer groups and products, as well as our regional presence, we are, in an excellent position to make good progress even during economically weaker phases. We therefore confirm our targets for the fiscal year of 2012. We will continue to pursue our strategy which aims at sustainable, profitable growth."

Strong Growth in Group Sales

Symrise increased its sales by 9 % to € 1,320 million in the first nine months of 2012 (9M 2011: € 1,206 million). Both divisions significantly contributed towards this increase. In the third quarter, the Group succeeded in increasing sales by 14 % (9 % at local currency) to € 448 million, compared to € 395 million in the same quarter of the previous year.
With a 20 % sales increase (21 % at local currency) Latin America provided the Group's strongest growth in the reporting period.  Developments in the Asia/Pacific region were also positive, allowing Symrise to boost its sales there by 15 % (8 % at local currency). In North America sales were up 19 %  (8 % at local currency). Economic caution influenced sales in the Western European countries of the EAME region as a result of the European sovereign debt crisis. However, positive impetus came from Eastern Europe, Russia and Africa. Compared to the prior year period, sales were slightly up by 1 % (1 % at local currency).
EBITDA Margin of 20 %
Symrise increased its EBITDA by 9 % in the first nine months to € 264 million (9M 2011: € 243 million). Raw material costs remained on an overall high level. As expected, the Group also had start-up costs for the new menthol production plant in Holzminden, Despite these factors, Symrise successfully maintained its profitability and posted an EBITDA margin of 20 % for the reporting period (9M 2011: 20.1 %).
Net income rose by 7 % compared to the first nine months of 2012 to € 126 mil-lion (9M 2011: € 117 million). Earnings per share rose by 8 cents to € 1.07 (9M 2011: € 0.99).
Cash Flow from Operating Activities above Last Year's Level
Due to positive business developments the cash flow from operating activities increased from  € 130 million in the previous year to € 138 million in the reporting period. The Group has the necessary liquidity and financial strength to fully implement its strategy. The ratio of net debt (incl. pension provisions) to EBITDA fell to 2.1 (December 31, 2011: 2.2).
Sales Share from Emerging Markets Reaches a New High of 48 %
During the first three quarters, Symrise continued to expand its strong market position in the emerging markets. With a sales increase of 11 % at local curren-cy, Symrise outperformed the Group's average growth rate in these regions. The company experienced particularly strong demand in Latin America, China, Russia and the Middle East. The share of sales generated in the emerging markets increased by two percentage points compared to the first nine months of 2011 and reached the 48 % mark for the first time (9M 2011: 46 %).
Strong Growth with Large Global Customers
Symrise has a balanced portfolio of small-scale local, medium-sized regional and large global customers. Global producers of food and consumer goods form a strategic focal point within the customer groups. Symrise increased its sales with its global customers by 11 % at local currency, outperforming the Group's total growth rate. Both divisions further expanded their business with global customers. Scent & Care reported a 12 % increase in sales at local cur-rency. Flavor & Nutrition grew sales with global customers by 9 %. Overall, business with major international customers accounted for 32 % of sales in the reporting period (9M 2011: 31 %).

Scent & Care

The Scent & Care division posted sales of € 671 million for the first nine months (9M 2011: € 610 million) - a 10 % increase on the previous year's figure. At lo-cal currency, sales were up 7 %. Scent & Care particularly continued rapid growth in the Life Essentials, Oral Care and Fine Fragrances application areas.
Latin America was by far the strongest region, realizing a 32 % sales increase at local currency. Scent & Care posted double-digit growth rates in all applica-tion areas. North America was the second strongest region, generating a sales growth of 9 % at local currency. Business with global customers was primarily responsible for driving this growth. Sales in Asia/Pacific rose by 7 % at local currency compared to the prior year period. This growth was mainly driven by high demand in Household, Oral Care and Cosmetic Ingredients. Despite posi-tive impetus from Africa and Eastern Europe sales fell by 3 % at local currency in the EAME region due to the European sovereign debt crisis.
Scent & Care increased its EBITDA in the reporting period by 5 % to € 124 mil-lion (9M 2011: € 117 million). Despite start-up costs for the new menthol plant and high raw materials costs, the EBITDA margin remained on a good level at 18.4 % (9M 2011: 19.2 %).

Flavor & Nutrition

Flavor & Nutrition grew its sales by 9 % in the first nine months to € 649 million (9M 2011: € 597 million). At local currency, this corresponded to a growth of 5 %. The division was able to boost its sales in all regions.
The Asia/Pacific and North America regions were responsible for the strongest growth in the division's sales (8 % each at local currency). Beverages and sa-vory applications, in particular, generated pleasing growth in the Asia/Pacific region. In North America, Flavor & Nutrition recorded growth in the upper sin-gle-digit to double-digit percentage range in all application areas. In Latin America, Flavor & Nutrition expanded its sales by 5 % at local currency, with Brazil, Argentina and Chile showing the strongest growth. Sales climbed by 4 % at local currency in EAME, driven primarily by substantial double-digit growth rates in Russia. By contrast, demand in Western European markets was no-ticeably weak due to the sovereign debt crisis.
Flavor & Nutrition improved its EBITDA by 12 % in the first nine months to
€ 141 million (9M 2011: € 125 million). At 21.7 %, the EBITDA margin exceeded the prior year figure (9M 2011: 21.0 %).

Expectations for the Full Year Confirmed

In the third quarter, an economic slowdown emerged in many economic regions which will continue in the fourth quarter. Despite this current uncertainty, Sym-rise is confident to reach its targets for the full year. The Group aims at a sales growth of between 3 % and 5 % at local currency and at an EBITDA margin of around 20 %. Symrise has two strong divisions, a balanced customer base, an innovative and diversified product portfolio and is geographically very well di-versified. This places the Group in a very good position to continue its sustain-able growth.

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 and foods, the pharmaceutical industry and producers of nutritional supplements.
Its sales of €1.584 billion in 2011 place Symrise among the top four in the global flavors and fragrances market. Headquartered in Holzminden, Germany, the Company is represented in over 35 countries in Europe, 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. In doing so, Symrise combines its insights into consumer trends with cutting-edge technologies, focusing on innovative trend and lifestyle products that have additional practical value for the consumer.

www.symrise.com