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9M / 2008 sales developed as planned
* Flavor & Nutrition achieved very good growth * Scent & Care faced lower demand in the luxury segments
EBIT 9M / 2008 maintained last year's high level / Q3 lower compared to strong Q3 in 2007
* Sales fluctuated due to economic uncertainties in ordering environment * Lower growth in luxury segments impacted product/margin mix * Margin affected by integration and new acquisitions
Underlying earnings per share remain unchanged on high level Forecast 2008
* Sales on target * EBITA at local currency - despite adverse product mix and high raw material costs - expected at last year's high level
Holzminden/Frankfurt. Despite the turmoil on the world's financial markets Symrise succeeded during the first nine months of 2008 in growing sales by 6.1 % at local currency to € 1,009.5 Million (+ 2.0 % at actual rates).
The EBIT for the first nine months of 2008 was lower by 2 % at € 158.5 million (2007: € 161.6 million), largely due to increased cost of sales. Despite the increase in sales the resulting EBIT margin was down by 0.6 percentage points to 15.7 % due to the greater increase in cost of sales. The EBITDA was lower by 3 % at € 211.5 million, corresponding to an EBITDA margin of 21.0 %.
Net profit for the first nine months of 2008 amounted to € 85 million, compared to € 84 million for the same period last year. Accordingly, earnings per share are € 0.72 (2007: € 0.71).
Despite the current uncertainties on the world's markets Symrise still expects sales growth of 6 % to 7 % at local currency for the year as a whole. The company is confident that it will be able to achieve an EBITA at local currency on the same high level as last year and correspondingly expects an EBITDA margin of approximately 20 %.
"Our good numbers in this difficult year confirm our corporate strategy and we will heighten our focus on it as we move ahead," said Dr. Gerold Linzbach, CEO of Symrise. "We are confident that we can continue to grow stronger than the market next year. Our market position is excellent, especially in emerging markets. We have the people, products, process and technologies to be successful even in difficult times."
The Symrise portfolio includes flavorings, fragrances and cosmetic active ingredients. To a large extent Symrise products focus on satisfying basic human needs, to a lesser extent on luxury items. For this reason the company expects that the current economic downturn will only have a limited effect on the greater portion of its product portfolio.
In the first nine months Flavor & Nutrition sales grew by 10.9 % at local currency to € 499.8 million (6.9 % at actual rates) including Chr. Hansen Flavors. Excluding Chr. Hansen Flavors, sales increased by 2.9 % to € 480.8 million, corresponding to an increase of 6.4 % at local currency. All regions and application areas contributed to the overall sales growth. In particular, we enjoyed continued double digit growth rates in emerging markets, where growth at local currency increased overall by 11% on last year. We also had double-digit growth in sales of 12 % at local currency with our top 10 customers. The share of our AND products (products with added features) rose by 3.3 % at local currency.
Chr. Hansen Flavors, acquired in the second quarter of 2008, contributed € 19 million in sales. Due to integration costs Chr. Hansen Flavors did not significantly contribute to the results.
Sales growth for the first nine months 2008 in Scent & Care was 1.7 % at local currency (down 2.3 % at actual rates). Sales in the areas Life Essentials, Household and Aroma Molecules developed according to plan. Fine Fragrances and the luxury end of Personal Care confronted weaker demand, especially in Western markets. In emerging markets we succeeded in growing sales at local currency by 5 % in the first nine months. Sales with Top 10 Customers increased at local currency by 6 %. Sales for AND products increased by 3.1 % at local currency for the first nine months.
For the Group as a whole, the third quarter of 2008 must be understood in comparison to the extraordinarily strong third quarter in 2007. In addition, sales in August 2008 were temporarily affected by the uncertainty of customers concerning the financial crisis. Despite the strong comparator and the temporary change in orders in August the group was able to increase sales at local currency by 4.9 % to € 333.5 million (+ 1.6 % at actual rates). Flavor & Nutrition succeeded in growing sales by 10.1 % at local currency; sales for Scent & Care remained on last year's level. Compared to last year's strong third quarter, results for the third quarter in 2008 were lower. Seen in the context of the first nine months the year 2008 as a whole continues to develop positively and is expected to close on a level comparable to 2007.
For a more detailed discussion please refer to the Management Report for the Period of January 1 to September 30 on our website at: http://investor.symrise.com
Key financials for the first 9 months of 2008
Change in Change in % % (in local 9M / 2007 9M / 2008 (at currencies) In € In € actual million million rates) Sales 989.2 1,009.5 + 2.0 + 6.1 - Scent & Care 521.8 509.7 -2.3 +1.7 - Flavor & Nutrition 467.4 499.8 +6.9 +10.9 EBITDA 219.0 211.5 -3 -2 EBITDA margin in % 22.1 21.0 - 1.1ppt EBITA 188.1 182.1 -3 -2 EBITA margin in % 19.0 18.0 - 1.0 ppt EBIT 161.6 158.5 - 2 -1 EBIT margin in % 16.3 15.7 - 0.6 ppt Net income for the period 84.3 84.9 +1 N/A Earnings per share 0.71ct 0.72ct +1 N/A Underlying earnings per +2 share* 0.85ct 0.86ct +1 No. of employees (on the qualifying date; not including trainees and apprentices) 4,926 5,096 + 3.5
* adjusting for recipe amortization as well as exchange movements on loans, movements in the valuation of swaps, and applying the underlying tax rate
About Symrise Symrise is a global supplier of fragrances, flavorings and cosmetic active ingredients for the perfume, cosmetics and food industry.
Its sales of €1.27 billion in 2007 place the company among the top four in the international flavors and fragrances market. Headquartered in Holzminden, Germany, Symrise is represented in more than 30 countries in Europe, Asia, the United States and South America.
With more than 40 patent applications per year, Symrise is one of the most innovative manufacturers on the market. Used by manufacturers of perfumes, cosmetics and foods, our products are an inseparable part of daily life. At Symrise we combine an awareness of consumer trends with cutting-edge technologies, focusing on innovative fashion and lifestyle products that have additional practical value for the consumer. Symrise - always inspiring more.
WKN: SYM999; ISIN: DE000SYM9999; Index: MDAX, TecDAX; Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Freiverkehr in Bayerische Börse München, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Börse Berlin, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Prime Standard in Frankfurter Wertpapierbörse;
