FragranceRawMaterials – The Beauty Influencers

Dr Jean-Yves Parisot assumes CEO position at Symrise

Christine Schott Ledes — Sun, 31 Mar 2024 14:49:29 +0000

Dr Heinz-Jürgen Bertram has handed over the CEO position at Symrise AG to Dr Jean-Yves Parisot. The company’s Supervisory Board, appointed Dr Jean-Yves Parisot, currently Member of the Executive Committee and in charge of the segment Taste, Nutrition & Health, as new CEO effective March 31, 2024. The Supervisory Board also renewed the contract of Dr Jean-Yves Parisot for another four years until the end of September 2028. Dr Heinz-Jürgen Bertram is retiring in the best mutual consent and agreement after 21 years of service at Symrise, of which 19 as a Member of the Executive Committee and 15 as CEO.

Michael König, Chairman of the Supervisory Board of Symrise AG said, “Heinz-Jürgen Bertram has shaped our company decisively. Thanks to his excellent work, Symrise today is a global industry leader and a well-respected member of the DAX-40 index. He has put the Symrise product portfolio on a broad, resilient footing. In addition to ensuring constant organic growth, he has sustainably strengthened the company through strategic acquisitions in important growth areas and has thus ideally positioned Symrise for the future. We are deeply grateful to Heinz-Jürgen Bertram for his achievements.”

“We are excited that Jean-Yves Parisot, an internationally experienced executive from within the company, will take over as CEO. In close partnership with Heinz-Jürgen Bertram, he has successfully transformed Symrise into a leading player in taste and nutrition. Symrise will be in the best hands with Jean-Yves Parisot, and a trustful and smooth transition at the top of the company is ensured,” said König.

Dr Heinz-Jürgen Bertram, CEO of Symrise AG stated, “Symrise is an industry leader, combining innovation capability, excellent quality, and sustainability. It is our dedicated global team that is making all that possible, day by day. It has been a privilege to lead the global Symrise team through eventful times. Now is the right moment to pass on to Jean-Yves Parisot so that he can shape the next chapter of our success story.”

Dr Jean-Yves Parisot, Member of the Executive Committee at Symrise AG, said “Symrise is built on strong foundations. We are benefitting immensely from that in our current, very demanding business environment. Many in our industry envy us for this position of strength. Our entrepreneurial activities will continue to focus on setting the right strategic course at an early stage to ensure profitable growth. I am grateful for the trust that the Supervisory Board is putting in me, and I am looking forward to the collaboration with the entire Executive Committee to ensure Symrise remains in pole positions in the years to come – for our clients, our employees, our shareholders, and all our stakeholders worldwide.”

Dr Jean-Yves Parisot joined Symrise in 2014 and became Member of the Executive Committee in 2016. He oversees the segment Taste, Nutrition & Health and will continue to do so on an interim basis until a successor for this role has been identified. Dr Jean-Yves Parisot has been President of the International Organization of the Flavor Industry (IOFI) since 2023. Prior to his time at Symrise, he had global leadership roles at Pfizer, Rhone Poulenc/Rhodia, Danisco, Air Liquide and the Diana Group prior to its merger with Symrise. He studied veterinary medicine and holds a MBA degree from HEC Paris.


	Pictured left is Dr Heinz-Jürgen Bertram who is exiting and right is Dr Jean-Yves Parisot – incoming CEO of Symrise AG.

The post Dr Jean-Yves Parisot assumes CEO position at Symrise appeared first on The Beauty Influencers.

Firmenich and DSM Announce the Launch of the Exchange Offer of their Merger to Create DSM-Firmenich

Christine Schott Ledes — Wed, 30 Nov 2022 03:16:00 +0000

Firmenich, the world’s largest privately-owned fragrance and flavor company, and DSM today jointly announce the launch of the Exchange Offer as part of their merger to create DSM-Firmenich:

The combination will bring together Firmenich’s unique leading Perfumery and Taste businesses, its world-class science platforms and associated co-creation capabilities with DSM’s outstanding Health and Nutrition portfolio and renowned scientific expertise.
The new company will have four high-performing and complementary businesses, each with leading positions and underpinned by world-class science. This will better enable DSM-Firmenich to partner with customers to fulfil their ambitions and address the needs of today’s conscious consumers who prioritize sustainability, health and well-being.
The new Swiss-Dutch global company will be domiciled in Switzerland and listed on Euronext Amsterdam.

The two companies will hold a joint analyst call today to provide an update on progress. The online presentation will be given by DSM’s Co-CEOs Geraldine Matchett and Dimitri de Vreeze, and Firmenich CEO Gilbert Ghostine at 12:00 CET on Tuesday, 22 November 2022 and can be accessed here:https://kvgo.com/corporate-services/DSM-Firmenich.

Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, commented: “We are entering the exciting next phase as we look to bring together DSM and Firmenich’s complementary capabilities, likeminded and passionate people, and unite the heritages of two great and historic companies. DSM-Firmenich is set to become the leading creation and innovation partner in nutrition, beauty and well-being, capable of delivering enhanced growth and shareholder value creation through strong growth synergies, as well as an enhanced customer offering and an even greater positive impact across the world.”

Gilbert Ghostine, CEO of Firmenich, added: “This merger is a transformational moment for the history of both businesses. DSM-Firmenich will be a global-scale partner, uniquely positioned to anticipate and better address the evolving needs of consumers by unlocking opportunities for our customers, and our people. Our two companies have an unrelenting commitment to their role in society with ESG at the core of everything we do, and I firmly believe that DSM-Firmenich will have a positive and measurable impact on people, climate and nature.”

Key takeaways from the announcement

The AFM has approved the Offering Circular, enabling the Company to formally launch the Exchange Offer as part of the merger of equals between DSM and Firmenich to create DSM-Firmenich.
The Acceptance Period begins at 09.00 hours CET on 23 November 2022 and expires at 17:40 hours CET on 31 January 2023, unless extended.
The managing board of DSM and the supervisory board of DSM unanimously support the Transactions and recommend the Exchange Offer to the DSM Shareholders for acceptance.
The board of directors of Firmenich unanimously supports and recommends the Transactions, Firmenich shareholders have already approved the Transactions.
There will be an EGM for the DSM Shareholders on 23 January 2023, at which the Transactions, including the Exchange Offer, will be discussed and the DSM Shareholders will be requested to vote in favour of, amongst other things, approving the Transactions
Completion of the Transactions is currently expected in Q1 2023
Additional material on today’s announcement and the Transactions can be found on the transaction website: www.creator-innovator.com.

Firmenich Q1 2023 Trading Update

Separately, Firmenich have announced its first quarter results for the three months ended 30 September 2022. Firmenich generated Revenue of CHF 1,246 million, an increase of 11.6% at constant currency, driven by a balanced contribution of volume / mix and pricing, partially offset by FX and generated an Adjusted EBITDA of CHF 237 million

The post Firmenich and DSM Announce the Launch of the Exchange Offer of their Merger to Create DSM-Firmenich appeared first on The Beauty Influencers.

Symrise delivers reliable, profitable growth during the exceptional year 2020

Christine Schott Ledes — Tue, 09 Mar 2021 20:49:20 +0000

— Group sales in reporting currency up 3.3 % to € 3,520 million

— Operating result (EBITDA) significantly above prior-year figure (+5.8 %) at € 742 million

— EBITDA margin increases to 21.1 %

— Dividend increase proposed from € 0.95 to € 0.97 per share

— Outlook for 2021: Symrise expects sales growth of 5 to 7 % and EBITDA margin of around 21 %

Symrise AG reliably continued its profitable growth course in 2020 despite the challenging environment. The Group increased its sales by 3.3 % to € 3,520 million taking into account portfolio and currency translation effects. In organic terms, sales went up by 2.7 %. The Group thus significantly outperformed market growth, which is estimated at 1.0 % for 2020. At the same time, Symrise stayed behind its defined sales target, as the business development in the month of December was impacted by a criminal cyber-attack. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 5.8 % to € 742 million in 2020. Profitability reached an outstanding level with an EBITDA margin of 21.1 % and was within the expected margin range. Against the backdrop of the good performance, the Executive Board and the Supervisory Board propose a dividend increase to € 0.97 for the fiscal year 2020 to the annual general meeting.

“In the historically exceptionally difficult year 2020, Symrise AG achieved a very solid result. Despite the shifts in demand resulting from the global coronavirus pandemic, we did an excellent job of staying on track until our progress was thwarted by a criminal cyber-attack on the final miles. Even though we were not able to fully achieve our growth targets, we nevertheless kept our profitability at a high level and continued to increase earnings. Once again, this success proves that we have a robust business model and that our dedicated employees reliably create value. We therefore also want our shareholders to participate in the success of the Company for 2020. The Executive and Supervisory Boards will propose a dividend of € 0.97 to the annual general meeting. This is the eleventh dividend increase in succession,” said Dr. Heinz Jürgen Bertram, CEO of Symrise AG. “Battling the pandemic will continue to define people’s everyday lives and economic conditions in 2021. However we look with confidence into the current financial year and expect reliable demand. Against this background, we are targeting organic sales growth of 5 to 7 % and an EBITDA margin of around 21 %.”

Sales growth despite the coronavirus pandemic and cyber-attack

In 2020, business performance was also defined by the global coronavirus pandemic at Symrise. The pandemic led to changes in consumer behavior and shifts in demand. However, owing to its highly differentiated business model, Symrise very reliably succeeded in continuing its profitable growth course. Taking portfolio and currency translation effects into account, sales went up by 3.3 % to € 3,520 million (2019: € 3,408 million). Organic sales growth amounted to 2.7 %. Even in the exceptionally difficult year 2020 with its huge challenges caused by the pandemic, the Group grew significantly faster than the relevant market for fragrances and aromas, which is estimated to have grown by 1.0 %. However, organic sales remained slightly below the targeted increase of between 3 to 4 % which was specified in the middle of the year. The reason was the cyber-attack in December, which led to temporarily significant restrictions in business workflows. As a consequence, organic sales growth in the fourth quarter was negatively affected and amounted to only 0.7 %. Without this one-off effect, Symrise would have achieved its growth targets on the back of good sales development in October and November, as well as a robust order backlog.

Profitability significantly increased compared with prior-year figure

Symrise increased earnings before interest, taxes, depreciation and amortization (EBITDA) to € 742 million despite comprehensive investments in future growth projects. This corresponds to an increase of 5.8 % as compared to the normalized prior-year’s level of € 701 million (EBITDA(N)). The biggest investment projects included expansion of production capacities for menthol and cosmetic ingredients, as well as the modernization of terpene production in the Aroma Molecules division in the USA. Furthermore, Symrise also invested in new production locations in China and Columbia.

Symrise also increased its profitability in the fiscal year 2020. The EBITDA margin rose to 21.1 % and exceeded the prior-year figure (2019 EBITDA(N) margin: 20.6 %). This means that once again, Symrise ranked among the most profitable companies in the sector.

Net income for the period rose by € 11 million to € 307 million (2019 normalized: € 296 million). Earnings per share increased to € 2.27 (2019 normalized: € 2.20) accordingly. Against the backdrop of this positive development, the Executive Board and the Supervisory Board will propose to the annual general meeting a dividend increase to € 0.97 per share for the fiscal year 2020 (2019: € 0.95).

Strong operating cash flow

Symrise increased the business free cash flow by 18 % year-on-year to € 564 million (2019 normalized: € 476 million). This represents a share of 16 % in sales (2019 normalized: 14.1 %). The development was driven above all by the strong increase in earnings as well as a decline in working capital which was also reduced due to the temporary interference in production caused by the cyber-attack.

Net debt including leasing liabilities decreased by € 269 million to € 1,348 million (2019: € 1,617 million) in the fiscal year 2020 as a result of the strong operating cash flow. The ratio of net debt (including interest-related increased provisions for pensions and similar obligations) and EBITDA was below the prior-year figure and amounted to 2.7 (2019: 3.2) on 31 December 2020 despite increased provisions for pensions.

The equity ratio decreased year-on-year from 41.3 % to 39.8 % due to currency effects. Symrise sees itself as very well positioned to sustainably advance future development of its business.

Scent & Care segment

The Scent & Care segment generated sales of € 1,370 million and achieved organic growth of 1.5 %. Taking negative currency translation effects into account, sales in reporting currency were 3.5 % below the prior-year figure. Furthermore, the cyber-attack caused impairments to the business.
The coronavirus pandemic exerted very varied impacts on the sales of the individual application areas of the segment. In particular, the strong demand for bodycare and hygiene products generated rising sales in Consumer Fragrances and Oral Care. Both application areas posted double-digit or high single-digit organic percentage growth. By contrast the Fine Fragrances application area was unable to continue at the high prior-year level owing to the pandemic and as a result of very restricted international travel activities. Sales in the Aroma Molecules and Cosmetic Ingredients divisions also underwent mixed developments and were each slightly below the good prior-year figures.

Scent & Care generated EBITDA of € 272 million in 2020 after € 278 million in the previous year. The EBITDA margin of 19.8 % was slightly above the level in 2019 (19.6 %).

In November 2020 Symrise signed a purchase agreement for the acquisition of the fragrance and aroma chemicals business of Sensient Technologies Corporation. Symrise is thereby continuing to expand its leading position as a provider of fragrance and aroma chemicals for applications in bodycare and household products in the future. This step will also strengthen the Company’s presence especially in EAME and Latin America.

Flavor segment

The Flavor segment generated sales of € 1,225 million in the fiscal year 2020 and consequently experienced organic growth of 0.7 %. Taking negative currency translation effects into account, sales in reporting currency were 2.6 % below the prior-year figure. The cyber-attack at the end of the year and changes in consumer behavior resulting from the coronavirus pandemic also impacted sales development in this segment: The global trend toward cooking and eating at home led to a strong demand for savory products in all regions. At the same time, internationally reduced out-of-home leisure activities led to a lower demand for beverage products and sweets. Latin America was the only region largely unaffected by the coronavirus pandemic and generated the strongest growth over the course of the fiscal year.

EBITDA in the Flavor segment amounted to € 267 million (2019: € 268 million). Profitability remained at a very high level with an EBITDA margin of 21.8 % (2019: 21.4 %).

Nutrition segment

Nutrition achieved an increase in organic sales of outstanding 8.2 %. Taking portfolio and currency translation effects into account, sales in reporting currency increased by 26.6 % to € 926 million. Once again, the strongest growth driver in all regions was the Pet Food application area. The business of the US-based ADF/IDF Group, which was acquired in November 2019, developed very well and exceeded expectations. Overall, this business achieved sales of € 209 million in the fiscal year 2020.

The Nutrition segment increased EBITDA to € 204 million and thereby significantly exceeded the normalized prior-year figure (2019 EBITDA(N): € 155 million). The EBITDA margin increased, also supported by ADF/IDF, to 22.0 % (2019 EBITDA(N) margin: 21.2 %).

Symrise confirms long-term growth and profitability targets

Overall, Symrise is looking ahead to the fiscal year 2021 with confidence. The delivery backlogs caused by the cyber-attack have now been largely resolved and the IT systems have been fully restored. Furthermore, Symrise is assuming that the global economy will recover with rising vaccination rates and improved methods to combat the pandemic. The Group therefore wants to return to its original growth momentum and is targeting organic sales growth of 5 to 7 % for 2021. Symrise would thus again grow significantly faster than the relevant market, which is expected to grow by around 3 to 4 %. Regarding profitability, the Company is aiming to achieve an EBITDA margin of around 21 % despite slightly rising raw material costs.

Symrise regards the underlying growth drivers for its own business as being intact and believes it is very well positioned to also realize its medium-term forecast. The Company therefore confirms its target of achieving average annual growth of between 5 and 7 % (CAGR) by the end of 2025. Symrise has aligned its business model along key global megatrends, including an increasing world population, economic progress in emerging markets and the trend toward healthier nutrition and natural ingredients. Thanks to its global positioning, its highly diversified portfolio and its broad customer base covering a wide range of varied market segments, Symrise regards itself as being very well positioned to meet the emerging demand.

Furthermore, the Group will continue to invest in growth projects, while at the same time maintaining disciplined cost management and focusing on business with strong margins. For Symrise the priority is on organic growth which can, however, be complemented by targeted value-adding acquisitions as well as by strategic partnerships.

The post Symrise delivers reliable, profitable growth during the exceptional year 2020 appeared first on The Beauty Influencers.

The Garden Lab Collection from Symrise

Christine Schott Ledes — Wed, 20 Jan 2021 04:23:43 +0000

With its Garden Lab Collection, Symrise is opening up new natural fragrance ingredient territory. It allows perfumery to use real vegetables in fine fragrance creations for the first time. Artichoke, cauliflower, leek, asparagus and onion meet the increased demand for sustainability as they consist of 100 percent plant-based materials. Also, they address the trend towards health and wellbeing with their natural olfactive appeal. Symrise produces this collection by upcycling byproducts from the food industry. It also sources the raw materials locally while respecting seasonality. Together, the five veggie materials will enrich the perfumery palette of Symrise. The company has launched a total of 42 natural raw materials in the past two years.

The fragrance experts at Symrise have developed their Garden Lab Collection in collaboration with the nutrition experts of Symrise Diana Food. They produce food ingredients for nutrition based on agricultural raw materials, which means they have comprehensive knowledge about functional ingredients from nature as well as the specific smells and tastes of vegetables. As a result, the Garden Lab Collection authentically embodies the scent of a garden. Fresh and intense essences from vegetables take up the increasing demand for plant-based products and translate it into fine fragrance ingredients.

With this cooperation, Symrise has tapped into an extraordinary source for fragrance creation. The diverse range of vegetable ingredients runs from mild artichokes to creamy cauliflower to tropical onions. They complement traditional raw materials of the perfume industry, such as sweet or intense gourmet notes. These plant-based ingredients bring freshness and texture, allowing Symrise to address the preferences of consumers who increasingly value health and well-being and want natural products.

“We have consistently implemented our innovative vision to create a fragrance with surprising olfactory facets. We want to keep our position of game-changer of the industry by developing revolutionary ingredients and offering the best of innovation to our perfumer for their future creation. ” says Ricardo Omori from Symrise Fine Fragrance.

Sustainable production of natural fragrances

Symrise Nutrition’s Food business unit sources the basis for the green fragrances from long-standing and sustainable raw material partners in the food sector. Both customers and consumers prefer this type of procurement, which is why it forms an integral part of the corporate strategy at Symrise. For the Garden Lab collection, the company uses 100 percent natural raw materials. Otherwise, the byproducts of the food industry would go to waste.

The use of byproducts from other business sectors is part of the zero-waste strategy of the Holzminden-based company, which wants to reduce the loss of raw materials. With the Garden Lab collection, Symrise is optimizing its sustainable value chain and using a cold pressing process that saves energy. This also allows Symrise to capture volatile notes from fresh, crushed plant-based materials and use them for its fragrances.

“From the synergy of two seemingly completely different skill sets, we have created a special fragrance innovation. It combines the best of both worlds in one product: fine fragrances based on aromatic vegetable varieties,” adds Jean-Yves Parisot President Nutrition Segment, Member Executive Board. Symrise perfumers and nutrition experts from Symrise Nutrition have broken new ground with this cooperation. Fragrance creation and agricultural expertise have created a collection of inspiring and sustainable fragrances.

The post The Garden Lab Collection from Symrise appeared first on The Beauty Influencers.

Exclusive: Symrise’s Achim Daub on Covid-19’s Impact on the Fragrance Industry

Christine Schott Ledes — Tue, 27 Oct 2020 15:06:12 +0000

George Ledes: What was Symrise’s response to Covid-19 and how has it evolved throughout the pandemic?

Achim Daub: When the pandemic hit in early 2020, the fragrance industry had just came out of a significant raw material availability and cost crisis which had lasted for the better part of two years. Having managed this significant crisis successfully, we were absolutely prepared to mitigate any Corona-related impact on our business. The resilience of our business continuity processes had been greatly improved and the teams around the world had gathered significant experience in how to proactively manage a crisis. This enabled us to secure an uninterrupted supply chain to all of our customers around the world at all times. In hindsight, our biggest challenges from 2018 / 2019 turned out to be a blessing in disguise in 2020. Obviously, when Corona first hit, it appeared to be a regionally isolated issue, initially constrained to China, but then soon spread across Asia. I actually happened to be on a business trip to Asia early in the year and remember vividly setting up the first regional crisis management team then and there. When it became clear that this would result in a global pandemic, we quickly rolled out our proven effective crisis management procedures around the globe. All our crisis management activities were and continue to be guided by two key principles: to ensure everyone’s health and safety, as well as to provide an uninterrupted supply and service to all our customers around the world at any cost. And if you look at the 2020 HY-1 results we published in early August, you will see that the Symrise Group has proven to be very resilient against external shocks delivering sales growth of +7.6% over prior year as well as raising our margin guidance for the year to 21-22% Ebitda. Given the proven strength and resilience of the Symrise business model, our share price gained 27% in the current year alone and recently reached its highest level since the IPO in 2006 at 120.25 Euros. Finally, we also conducted a survey among our global employee base asking our team members to rate the Company’s response to the pandemic which resulted in extremely positive feedback, indicating that our employees felt safe, protected and well taken care off during these difficult times.

George Ledes: How is the fragrance industry faring?

Achim Daub: Regardless of the Corona crisis, our industry has been and will continue to be going through a significant and dynamic change for years to come. It will change the face of the industry forever. For one, we’ve seen an accelerated pace in industry consolidation where the larger companies have picked up and integrated several smaller, mid-market players. The before mentioned raw material crisis of 2018 / 2019 was a major inflection point such that companies without any meaningful backwards integration in strategic raw materials were cut out of supply chains, and or faced with significantly higher input costs eroding their margins. If anything, this trend of accelerated industry consolidation is slated to continue in the wake of Covid-19. On top of that we’ve seen an aggressive pace and scope of some of the larger players following Symrise’s lead in building more diversified and synergistic product portfolios beyond pure flavors and fragrances. This will certainly alter the industry forever and enable us to serve our customers with more holistic solutions thus contributing to the health, beauty and well being of families around the world. Lastly, we seen an accelerated pace of new technologies taking hold in the fragrance and flavors industry, where Symrise, yet again has taken the lead in being the first and only company to develop a fully functioning AI (Artificial Intelligence) system in perfumery, driving both enhanced creativity as well as efficiency. This trend of embracing the opportunities new technologies provide and merging them in an intelligent way, with the artisanal aspects of classic perfumery, is here to stay as well.

George Ledes: How do you expect COVID-19 to alter the fragrance industry?

Achim Daub: On a short-term basis the Corona crisis obviously did impact the fragrance industry quite significantly. However, as compared to many, if not most other industries, the balance between the negative and positive impact has been rather in the industry’s favor. The biggest short-term negative impact occurred in the sub-sector of fine perfumery due to the collapse of global travel and wide spread store closures. The resulting significant decline in sales and project activity, however, got overcompensated by very strong growth in other sectors driven by consumers’ increased demand for everything related to hygiene, cleaning and well being. While some of these shifts in consumption patterns, i.e. regular and more frequent hand washing, will prevail, others will not. In my view, what the pandemic has reinforced is the increased consumer demand for more natural, safer and more sustainable products across all product categories. This, in turn, will lead to an even greater push for more transparency with consumers wanting to know what’s in the bottle, where it comes from, and how it was made. Further potential of lasting change, if and when we as industry leaders decide to make it happen, is in the area of how we conduct our business. Obviously, we all have learned a lot in terms of shifting work from the office to working from home. This gives us an opportunity to reflect on our future footprint in terms of real estate and office space. Many, if not all of our meetings, both internal as well as with clients and other outside partners, were and for the most part continue to be conducted via Zoom as opposed to in-person meetings. As a result, we benefit from greater productivity as teams spend less time on the road, as well as from lower cost, specifically in the area of T&E. It’s up to us to decide which actions to derive from these valuable lessons and experiences in order to drive the productivity and efficiency of our businesses. In my humble opinion, similar lessons can be learned from the fact that the industry survived the year without going to countless industry events, conventions and social gatherings, many of which have a questionable return on investment to begin with. So, if I look at all the areas of impact Covid-19 has had on the fragrance industry, I would say that the positive impact – both in terms of business performance as well as lessons learned to build a more productive tomorrow – far outweigh the negative impact in terms of declining fine fragrance sales. We should embrace this opportunity and bring as many of these positive impacts as possible forward into the future.

The post Exclusive: Symrise’s Achim Daub on Covid-19’s Impact on the Fragrance Industry appeared first on The Beauty Influencers.

Symrise Opens Production Site in China

Christine Schott Ledes — Thu, 28 May 2020 04:02:11 +0000

Symrise opens production site in China

biggest individual investment of € 50 million in flavor and fragrance production
partly virtual opening via video conference
underlines growth plans in China for the future

Symrise experienced a premiere in a number of ways. The company opened its biggest individual investment and invested € 50 million in the construction of the new production site for flavorings and fragrances in Nantong. In addition, the Executive Board, senior staff, plant workers and guests opened the facility virtually – in a video conference – for the first time. Chief Executive Officer Dr. Heinz-Jürgen Bertram and Chief Financial Officer Olaf Klinger conveyed their greetings via live video from Holzminden.

The decision to build at this location, in the industrial park on the green field, was made back in 2016. The site convinced the company with its versatile potential. Modern infrastructure, an attractive business environment and a number of sustainability aspects were the deciding factors in the plans for the site near Shanghai. Symrise celebrated its topping out ceremony two years ago. Already then, you could tell by its dimensions that the Group was building a state-of-the-art production facility geared toward the future and growth.

The expansion of the production of fragrances and flavorings in the rapidly expanding Chinese market makes sense, because the world’s second-largest economy has great potential to soon become number one. This development correlates with the history of Symrise in the country. In the past ten years, the company has grown around eight percent per year on average. With a six-percent share of total sales, China follows the USA and Germany as the third-strongest revenue-generating market for Symrise.

In this environment, Symrise is sending a clear signal for future growth in the region with its modern plant in Nantong – especially in light of the current situation. The company wants to build on its success with its proven strategy and dedicated team. The subsidiary Tesium, specialist in technology, safety and the environment, assisted the local Symrise experts in planning and implementation.

“The celebratory and partially virtual opening of our plant in Nantong demonstrates our trust in the Chinese market, and we are consciously committing ourselves to the world’s strongest growth region. Of course, we are also keeping a close eye on how the COVID-19 situation is progressing here,” comments CEO Dr. Heinz-Jürgen Bertram on the strategic approach. “From these observations, we enacted measures and were successful in keeping our entire business running and opening our plant as planned. Ultimately, we want to reliably serve our customers in China and grow with them. A big thank you therefore goes to the flexibility and extreme dedication of our employees.”

The post Symrise Opens Production Site in China appeared first on The Beauty Influencers.

Symrise continues to grow in challenging market environment

Christine Schott Ledes — Mon, 04 May 2020 18:49:09 +0000

The Symrise Group remains on track for growth in the fiscal year 2020. In the first quarter, sales were up by 8.0 % to € 917.1 million (Q1 2019: € 848.8 million). All segments contributed to this positive development and posted gains despite the challenging global economic conditions under Covid-19. In organic terms, sales were up 2.3 % after strong comparative figures in the prior-year quarter.

“The Covid-19 pandemic is proving a tough test for the global economy. Symrise has put measures in place at all of its locations to provide employees and partners with optimal protection against the virus. We continue to be fully operational and are making every effort to supply our customers with the reliability they are used to. In this context, our employees’ flexibility and enormous commitment play a decisive role,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. “This crisis again underscores the resilience and balance of our business model. With our broad range of product solutions for foods and beverages, personal care and hygiene, we serve especially in these times the needs of everyday life. In addition, we are demonstrating social responsibility by using our technological skills and resources to produce disinfectants by the ton and deliver them free of charge to municipalities for use in public institutions.”

Scent & Care with strong demand for fragrance products and menthol

The Scent & Care segment, specializing in fragrances and personal care, achieved total sales of € 368.4 million. In reporting currency, this represents a slight increase as compared to the strong prior-year quarter (Q1 2019: € 367.3 million). On an organic basis, the segment increased sales by 1.2 %.

The Fragrance division reported a significant increase in sales, with particularly strong demand in the EAME and Latin America regions. The application areas Fine Fragrances, Consumer Fragrances and Oral Care continued to achieve good sustainable growth.

In the Aroma Molecules division, sales came in slightly below the high level of the prior year, mainly as a result of weaker demand for fragrances. In the previous year, the application area benefited from soaring raw material prices fueled by raw material shortages. Sales in the first three months of the fiscal year 2020 received a boost from menthol applications, especially in the regions North America and Latin America.

Sales in the Cosmetic Ingredients division developed moderately as compared to the previous year, especially in the North America and Asia/Pacific regions. This reflected both the high comparative figures as well as a momentarily reduced demand for UV protection products. In addition, sales in China temporarily lagged behind the forecast levels. At the same time, Cosmetic Ingredients posted in the EAME and Latin America regions high single- and double-digit growth rates.

Flavor grows with savory products and beverage applications

In the Flavor segment, which supplies flavor ingredients for foods and beverages, sales increased by 2.2 % to € 322.6 million (Q1 2019: € 315.6 million). Adjusted for exchange rate effects and after a strong prior-year quarter, organic growth in the segment amounted to 1.6 %.

In EAME, the highest growth rates were recorded in applications for beverages and savory products, especially in the national markets in Germany, Eastern Europe, the Middle East, and South Africa. Sales in applications for sweets were slightly below the prior-year quarter.

In the Asia/Pacific region, sales growth in the beverages application area was in the high single-digit percentage range and reached even double-digit growth rates in savory applications. The national markets of Singapore, Indonesia, Vietnam and Bangladesh developed particularly pleasing. By contrast, the currently weaker demand in China had a negative impact on the overall positive regional development.

In North America, the application areas for beverages and sweet products were slightly below the strong prior-year level. The savory business achieved solid growth with regional and global customers.

Business in Latin America developed very dynamically and achieved high single-digit percentage growth for sweet products. At the same time, sales for beverage and savory products grew in the double-digit percentage range. Demand for beverage application products was particularly strong in the national markets of Brazil and Uruguay.

Nutrition with strong growth in pet food

In the Nutrition segment, which includes Diana (food, pet food and probiotics applications) and the activities of ADF/IDF, sales increased by 36.2 % to € 226.1 million (Q1 2019: € 165.9 million). ADF/IDF contributed € 52.5 million to total segment sales in the period under review. Acquired in 2019, ADF/IDF continues to meet all expectations. The integration is well on track and the Group will continue opening up new opportunities to drive future growth in the segment. Adjusted for portfolio and exchange rate effects, organic growth amounted to a very good 6.1 % in the period under review.

Demand in the pet food business again showed a very pleasing double-digit percentage gain in organic terms, with dynamic growth continuing especially in the Latin America and Asia/Pacific regions.

Sales in the application area food developed moderately in the first quarter. The Latin America region delivered strong results, above all in the national markets in Chile and Brazil.

The probiotic business achieved organic growth in the double-digit percentage range. The North America and Asia/Pacific regions developed particularly dynamically.

Confident for the current fiscal year

Symrise continues to be fully operational worldwide and has sustained supply capability. Due to its global presence, its expanded portfolio and broad customer base, the Group considers itself to be robust and reliably positioned even in this demanding market environment. Symrise expects that the Covid-19 crisis will temporarily change consumer behavior in parts and lead to a shift in the portfolio. A large number of the products that are currently in greater demand address essential daily needs in connection with nutrition, personal care and hygiene.

After a solid start into the year, Symrise remains confident for the current fiscal year. While the development and impact of Covid-19 is difficult to assess at present, the Group continues to expect to grow faster than the relevant market, supported by the very diversified competencies, in the course of the year.

The longer term goals until the end of 2025 remain in effect. Symrise aims to increase its sales to
€ 5.5 – € 6 billion. The Company intends to achieve this increase through annual organic growth of
5–7 % (CAGR) and additional targeted acquisitions.

Financial calendar 2020

6 August 2020
Interim Report Group Report January – June 2020

29 October 2020
Interim Group Report January– September 2020 (trading update)

The post Symrise continues to grow in challenging market environment appeared first on The Beauty Influencers.