Symrise confident it will expand market share in 2011

09 March 2011 11:37  [Source: ICIS news]

LONDON (ICIS)--Germany-based international flavours and fragrances producer Symrise said on Wednesday it is confident that its two business divisions will expand their market share in 2011.

The company said its Scent & Care and Flavor & Nutrition segments will both outperform the overall market for flavours and fragrances this year, adding that the group will focus on retaining a strong position in emerging markets.

“We’re optimistic about the current financial year and have set ourselves the goals of again outperforming market growth and winning market shares,” said Symrise CEO Heinz-Jurgen Bertram.

“We are therefore sticking to our aspiration of permanently being one of the most profitable companies of our sector, and working on the basis of a sustained EBITDA [earnings before interest, tax, depreciation and amortisation] margin of above 20.0%,” he added.

Symrise on Wednesday posted a 58.4% year-on-year rise in net income to €84.3m ($117.2m) for 2010, as sales grew by 15.4% to €1.57bn, following a rebound in consumer confidence and continued strong consumption in emerging markets.

The group’s EBITDA in 2010 rose by 35.0% year on year to €331.2m, while its EBITDA margin improved to 21.1% from 18.0% in 2009, exceeding the company’s target of an EBITDA margin of more than 20%, it said.

However, Bertram pointed out that the company is expecting more moderate growth for 2011, following a strong 2010, adding that the course of the crisis in the Middle East and the oil price development will be a determining factor on the influence of consumer behaviour.

“At the same time we expect raw material prices to be one of the main challenges which we will keep a close eye on,” he said.

In January, Symrise announced that it had taken measures to make it harder for a bidder to take the company over, after analysts in Germany said either US-based International Flavors & Fragrances or Netherlands-based specialty chemical company DSM may be considering a bid.

Symrise was formed in 2002 out of the merger of US flavours and fragrances group Dragoco and Germany-based Bayer’s rival Haarman & Reimer business. It went public in 2006.

($1 = €0.72)

By: Franco Capaldo
+44 (0)20 8652 3214

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