Symrise Expects Sales Slowdown
● The German fragrance and flavors supplier cited the softening global economy and rise of raw material costs.
PARIS — German fragrance and flavors supplier Symrise expects its sales growth will slow in 2022, as a result of the softening global economy as well as the rise of raw material costs and energy prices.
The Holzminden, Germany-based producer said Tuesday that it expects sales to increase this year of between 5 percent and 7 percent.
The company reported that its sales in 2021 reached 3.83 billion euros, up
8.7 percent in reported terms and 9.6 percent on an organic basis.
Symrise’s net profits were up 22.2 percent to 374.9 million euros.
Earnings before interest, taxes, depreciation and amortization grew 9.6 percent to 814 million euros, while EBITDA margin was 21.3 percent.
The EBITDA margin target for 2022 is approximately 21 percent.
On a geographic basis last year, Latin America registered the strongest organic growth, with 13.5 percent. Second was the Asia Pacific region, with 10.3 percent, while the Europe, Middle East and Africa region and North America posted increases of 8.8 percent and 8.5 percent, respectively.
Symrise’s Scent and Care segment’s sales rose 8.9 percent to 1.49 billion euros, including a 40.9 million euro portfolio effect stemming from the takeover of Sensient’s fragrance business in the U.S. Stripping out portfolio and currency effects, the branch posted an organic sales gain of 7.9 percent.
Thanks to the uptick of travel as coronavirus pandemic restrictions loosened, Symrise noted a strong recovery in its Fine Fragrances and Cosmetic Ingredients divisions, which registered single-digit and double-digit percentage growth, respectively.
Looking further ahead, through the end of 2025, Symrise is targeting an EBITDA margin of between 20 percent and 23 percent.