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Symrise reports strong sales and earnings growth in 2016


2017-03-23

Symrise benefited from strong demand across all segments and regions, increasing its sales by 12% (local currency:  16%) to €2,903.2 million (2015: €2,601.7 million).

"In the fiscal year 2016, Symrise continued with its highly dynamic and profitable growth course while making targeted investments to expand its portfolio, competencies and capacity. Furthermore, we expanded our business segments to give them more flexibility. With our advanced and unique structure, we are able to best possibly address future customer needs and identify market opportunities early on. This foresight has been a defining feature of our approach for more than a decade and gives us a clear competitive edge. We want our shareholders to participate in this success. At the Annual General Meeting, the Executive Board and Supervisory Board will propose a dividend of €0.85 per share for the fiscal year 2016," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “For 2017, we remain optimistic despite political changes and tensions in some countries. We have a presence in more than 40 countries, a widely diversified portfolio, and highly engaged employees. We aim at continuing our highly profitable growth course and remain one of the leading companies in our industry."

Strong sales growth again

Symrise benefited from robust demand across all regions and segments in 2016. Sales increased by 12% year-on-year in reporting currency to €2,903.2 million (2015: €2,601.7 million). In local currencies, the increase amounted to 16%. Excluding portfolio effects from acquisitions in the areas of fragrances and nutrition and from the divestment of Pinova’s industrial activities, organic sales growth in local currency amounted to 8%. As a result, Symrise posted substantially stronger growth than the relevant market for flavors and fragrances, which grew around 3% for 2016 according to market estimates.

Double-digit growth in Emerging Markets

As part of its proven corporate strategy, Symrise continued to expand its presence in Emerging Markets and intensified cooperative activities with strategic customers in those markets. This led to a 15% increase in the Group's Emerging Market sales, which accounted for 43% of total sales (2015: 46%). Compared to the prior year, the sales share of those markets has been a bit lower as the companies acquired in 2016 have a stronger market presence in the Mature Markets.

Segment expansion following dynamic business development

In 2016, Symrise expanded its organizational structure to grant the individual segments greater flexibility in developing their business activities. Along with this, a three-segment structure was established and two new members were appointed to the Executive Board.

The activities of the former Flavor & Nutrition segment are now carried out by two separate segments. The Flavor segment includes applications for beverages, savory products, and sweets. The Nutrition segment comprises the Diana division with the application areas of food, pet food, Aqua and Probi. Scent & Care continues to combine the areas of fragrances, cosmetic ingredients and aroma molecules. Fragrances, with its application fields of fine fragrances, personal care, oral care and home care, was reorganized into global units in 2016.