The group considerably increased its sales and earnings in the first nine months of 2014, benefitting from high demand in both segments and all regions. For the first time and as of July, the consolidated financial statements also include the results of Diana Group, which was acquired in spring. Symrise thus increased its Group sales by 13 per cent at local currency to €1 530.0 million in the reporting period.
Earnings before interest, taxes, depreciation and amortization as normalised for one-time effects from the acquisition and integration of Diana (EBITDAN) increased by 18 per cent to €343.8 million. The EBITDAN margin rose to 22.5 per cent.
CEO Dr Heinz-Jürgen Bertram comments: ‘Symrise is very well on track and in great shape. In the first nine months of the year, we successfully used market opportunities, systematically pursued our strategy and further expanded our market position. The Diana Group has been part of Symrise since July and we are successfully combining our activities. This will allow us to offer a much broader portfolio in the future and to make ourselves stand out in the market even more. We therefore consider Symrise in a good position for the remaining weeks of this year and also the future.’
Sale growth across the board
Symrise increased its sales by nine per cent in the reporting currency to € 1 530 million in the first nine months of the year. At local currency, this amounts to 13 per cent growth. All of the regions and both segments contributed to the Group-wide increase in sales, as did the acquisition of the Diana Group.
Latin America was the most rapidly expanding region with a sales increase of 20 per cent at local currency, followed by EAME with a 14 per cent sales increase at local currency. Symrise grew sales in North America by 13 per cent at local currency. The Asia/Pacific region increased its sales by seven per cent at local currency.
The focus placed on high-margin business, unwaveringly high capacity utilisation, and continued cost discipline significantly contributed to the Group’s increased profitability. One-time effects in the amount of €12.9 million were incurred in relation to the acquisition and integration of the Diana Group. These were allocated to the Flavor & Nutrition segment. Earnings before interest, taxes, depreciation and amortization as normalised for specific effects (EBITDAN) increased by 18 per cent to €343.8 million in the first nine months of the year. At local currency, this equates to an increase of 22 per cent. The normalised EBITDA margin increased by 1.8 percentage points to 22.5 per cent.
The financial result includes acquisition-related one-time expenses amounting to €7.8 million. In addition, write-downs on intangible assets from the Diana transaction had not yet been taken into account in the third quarter, as their revaluation (purchase price allocation) had not yet been completed. The net income for the period as normalised for these specific effects increased by 26 per cent to €175.9 million in the reporting period; the normalised earnings per share increased accordingly, from € 1.18 to € 1.42.
Cash flow from operating activities rose by 24 per cent to €218.7 million. This sharp increase can be attributed to the higher net income for the period and a below-average rise in working capital. The ratio of net debt to EBITDAN amounted to 2.4. Taking pension liabilities into account, the ratio amounted to 3.2 (December 31, 2013: 2.0). With an equity ratio of 38 per cent Symrise continues to operate on the basis of a strong balance sheet.
Symrise expects to see good momentum in both of its business segments in the remaining weeks of 2014. Although political conflicts will continue in some countries the group expects robust demand in all regions. Accordingly, Symrise is confirming its goal of growing faster than the global market for fragrances and flavours in 2014 also and of achieving an EBITDA margin of more than 20 per cent. The objectives defined for the 2020 fiscal year also apply to the Group as expanded by the addition of the Diana Group and continue to be valid: Symrise aims at a compound annual growth rate (CAGR) of between five and seven per cent and an EBITDA margin in the range of between 19 to 22 per cent.