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Profitable 2010 for Symrise, "Moderate" Growth Ahead for 2011
Posted: March 11, 2011
Boosted by a recovering world economy, emerging markets, strong overall demand and increased business with top customers, Symrise AG reported full-year 2010 sales of €1.5 billion, a gain of 15% year-over-year. EBITDA margin for the period totaled 21.1%. The company grew its operating cash flow to €235.1 million (2009: €225.7 million).
The outcome resulted from a 21% sales growth in Asia-Pacific (due, in part, to demand for fine fragrances and aroma molecules), 18% sales growth in Latin America, 16% sales growth in North America and 12% sales growth in Europe, Africa and the Middle East (EAME).
Emerging markets now account for 46% of total sales for Symrise; sales in those areas rose 13% in 2010.
Meanwhile, the company grew its business with its top 10 customers by 14%, driven by its inclusion on new core lists and new projects associated with existing lists. Top customers now account for about 30% of total sales.
The scent and care division sales grew 18% to €804.5 million, driven by a 13% increase in sales to top 10 customers, double digit growth rates for all application areas and regions, and strong performance in personal care and fine fragrances. Boosted by oral care and fine fragrances, North America and EAME sales both grew 13%; fine and special fragrances helped Asia-Pacific grow 12%; and Latin American sales grew 10%.
Symrise focused on cost management in 2010, particularly sharp rises in the cost of some key raw materials. According to an official statement, "Symrise benefited from a number of factors including backward integration in the purchasing of key raw materials such as vanilla, as well as from relatively favorable conditions which had been secured early on."