“Discernable Upswing” Evident in Symrise Q3 2009 Results
Posted: November 12, 2009
Symrise reported a sales gain of 4% in the third quarter, compared to the same period 2008. The scent and care and flavor and nutrition divisions contributed to the increase, which occurred in every geographical region. For the first nine months of the year, Symrise posted a revenue gain of 1.3% compared to 2008, reaching €1,037.5 million. The company now says it expects to grow faster than the market for full-year 2009.
“The clearly discernible upswing in the third quarter confirmed our expectations for the second half of 2009," said Heinz-Jürgen Bertram, CEO, Symrise. "In our view, the sales growth in both business divisions and in all regions is a signal that destocking on the part of our customers has virtually come to an end. This contributed to the improvement of our earnings situation, as did the restructuring measures, the effects of which became apparent in the third quarter. Symrise remains fast-growing and profitable. For the year as a whole, we expect a sales growth of 2% at local currency."
Despite a nine-month decline of 7% in Europe/Africa/Middle East (EAME) compared to 2008, a 2% third quarter sales gain in Eastern and Western Europe has given Symrise hope that fortunes are changing. Meanwhile, Symrise saw significant results in South America and North America in the first nine months of the year, jumping 19% and 23%, respectively; the latter benefited from the 2008 purchases of the Chr Hansen flavor division, Manheimer Fragrances and Intercontinental Fragrances. In Asia/Pacific, sales rose 6%.
Symrise reported that its flavor and nutrition and scent and care divisions increased major customer sales by 6.9% and 0.3%, respectively. Fully 28% of the company’s sales are now tied to their top 10 customers, boosted by entry onto several new core lists.