Symrise reports 6.3% sales growth in H1 2024

GERMANY – Symrise AG, a global leader in food and beverage ingredients, has demonstrated strong financial performance in the first half of 2024 despite ongoing global economic challenges.

 The company’s sales increased by 6.3% to €2,565 million compared to the same period in 2023. Excluding portfolio and exchange rate effects, Symrise reported an impressive organic growth rate of 11.5%. 

This growth was driven by robust performance across its two major business segments. The company also saw a significant increase in its profitability, with the EBITDA margin rising to 20.7%, a notable improvement from the previous year’s adjusted figure of 19.7%.

One of the primary factors contributing to Symrise’s increased profitability was the successful implementation of a strict cost management and efficiency program, which was launched in the first quarter of 2024. 

The program has already achieved half of its targeted savings of approximately €50 million, demonstrating its effectiveness in boosting operational efficiency. Material usage was slightly more favorable during the period, further enhancing the company’s profitability.

Jean-Yves Parisot, CEO of Symrise AG, expressed confidence in the company’s trajectory, stating that the business is on a profitable growth path despite global economic headwinds such as geopolitical tensions and high inflation. 

He reaffirmed the company’s commitment to its growth and profitability targets for the full year. Symrise aims to achieve organic sales growth of 5-7% in 2024 and maintain an EBITDA margin of around 20%.

These targets are underpinned by the company’s diversified product portfolio, regional presence, and a sustainable business model that has proven resilient in volatile markets.

Symrise’s Taste, Nutrition & Health segment played a key role in the company’s strong first-half performance, delivering organic sales growth of 10%. 

While exchange rate and portfolio effects impacted the overall reported sales growth, this segment’s sales in the reporting currency amounted to €1,572 million, reflecting an increase of 2.9%. 

Notably, the divestment of the UK beverage trading business had a negative impact of €16 million on sales development. 

Despite this, the Food & Beverage division saw strong demand for savory products, particularly in the Europe, Africa, and Latin America regions, which contributed to double-digit organic growth. 

The Naturals business unit and the sweet products and beverage flavoring units also recorded growth, especially in North America and Asia-Pacific regions.

The probiotics business, which includes Symrise’s majority interest in the Swedish company Probi AB, achieved single-digit growth, driven by increased demand in the Europe, Africa, and Middle East regions. 

This segment’s EBITDA rose to €348 million, up from €335 million in the same period of 2023, marking a 3.8% increase. 

The improvement in EBITDA was largely driven by profitable sales growth and a slight reduction in the raw material cost ratio, resulting in an EBITDA margin of 22.1%, slightly above the previous year’s figure.

Looking ahead, Symrise is not only focused on its short-term goals for 2024 but also has a long-term growth strategy in place. The company aims to increase its annual sales to between €7.5 billion and €8 billion by 2028, with an annual compound growth rate of 5-7%. 

This ambitious target will be supported by a combination of organic growth and targeted acquisitions. Symrise also expects to maintain a profitability corridor, targeting an EBITDA margin of 20-23% over the long term.

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