Symrise AG saw a successful start heading into fiscal year 2024. 

 

Symrise increased sales in its reporting currency by 5 % to 1.29 billion euros or $1.38 billion at current exchange rates, compared with 1.23 billion euros in Q1 2023, or $1.32 billion in current exchange rates. 

 

The organic growth of 10.9% resulted primarily from higher volumes, company officials said.

 

“As the new CEO, I am especially pleased that Symrise has been able to build on last year’s good business development,” Dr. Jean-Yves Parisot, CEO of Symrise AG. “Despite the sustained volatility in our markets, we are very optimistic for the months ahead and expect robust demand. Our diversified portfolio, our innovative offers and global positioning give us the necessary strength to continue leveraging our growth potential and thus create sustainable value for our customers and ourselves. We are on course to achieve our targets for the current year and our long-term targets through to 2028 as communicated.”

Sales of Scent & Care – the business with fragrance applications, aroma chemicals and cosmetic ingredients – increased by 13.7 % year on year to 516.4 million euros or $554.16 million compared to Q1 2023’s report of 454.0 million euros or $487.20 million in exchange rates. In organic terms, sales rose by 16.9 %.

 

In the Fragrance division, growth remained dynamic in the luxury segment. The fine fragrance business unit benefited from this, recording high double-digit percentage growth compared to the same quarter the previous year. Sales of the Consumer Fragrance business unit also grew by a double-digit percentage, driven by body care and household products.

 

The Aroma Molecules division likewise posted double-digit growth in the first quarter. Last year, the production shutdown at Colonels Island in the USA, the difficult market environment and high customer inventories led to a decline in sales volumes. The picture has changed in the first three months of the new fiscal year. There was strong demand for all product groups, including menthol, terpenes and specialty aroma chemicals.

 

In the first quarter of the current year, sales in the Cosmetic Ingredients division developed at the customary strong pace with double-digit percentage organic sales growth. The main drivers of this growth were the Europe, Africa, Middle East and Latin America regions.

The sun protection and micro protection business units in particular saw strong gains.

 

Symrise said it reaffirms its long-term growth and profitability targets for 2024. The company said it continues to expect that it will grow faster than the relevant market, for which long-term growth of around 3% to 4% is forecasted. The company’s long-term organic growth expectation is unchanged at 5% to 7% (CAGR). By the end of 2028, Symrise is seeking to achieve sales of 7.5 billion euros to 8.0 billion euros, or $8.05 billion and $8.59 billion in current exchange rates.

 

Symrise has already implemented a series of measures aimed at increasing profitability, including an efficiency program with strict company-wide cost management. If raw material costs remain largely stable, the company is anticipating an EBITDA margin of around 20% in 2024. In the medium term, Symrise is aiming to achieve an EBITDA margin in the range of 20% to 23%. A business free cash flow of around 12 % in relation to sales is targeted for 2024.

Symrise Sees 6.8% Sales Increase to $2.6 Billion