Symrise posts strong nine-month results, as it releases chocolate-enhanced nutrition offering
Fragrance, flavour and nutrition group, Symrise, has reported a 5.9% upturn in its nine-month performance with its global sales up to €3.8 billion, with revenues performing well across its operations, including for confectionery, writes Neill Barston.
According to the business, its food and beverage solutions – particularly sweet and savoury categories, achieved double-digit growth for the period, as it described a patter of robust delivery of its core strategies that has placed it in a buoyant position, despite turbulent international markets.
The business is set to showcase a series of its latest offerings at the US Supply Side West Event in Las Vegas between 30-31 October, unveiling an innovation in nutritious snack bars aimed at the health and wellbeing market.
Its latest Chocolate & Peanut Butter Mobility Protein Bar concept has been created to maintain mobility and immunity for an active lifestyle with great-tasting, on-the-go convenience, billed as offering a natural source of vitamin C.
As for its results, notably, in the third quarter, overall sales increased organically by 10.2%. Despite negative exchange rate effects of 4.0%, sales grew by 5.2% in the reporting currency. Against the backdrop of robust organic growth, Symrise has specified its organic growth target, sales expected to come in at around 7%.
Jean-Yves Parisot, CEO of Symrise AG: “Symrise was able to seamlessly continue the positive business development of the past months in the third quarter. Despite the current volatile market environment due to geopolitical tensions and continued inflation pressure, we are confident for the rest of the year and expect robust demand. Our diversified portfolio and broad, international footprint will continue to help us realize our growth potential and create sustainable value this year. We are firmly convinced that we have set the right course for the future.”
As the business added, the strongest organic growth was recorded in the Latin America region with 27.4%, followed by the Asia/Pacific region with 11.2% and EAME (Europe, Africa, Middle East) with 11.1%. The main growth drivers were the Food & Beverage, Fragrance, Aroma Molecules and Pet Food business units. The North America region achieved organic growth of 2.3%, driven primarily by the Food & Beverage and Aroma Molecules business units.
The Taste, Nutrition & Health segment increased sales organically by 10.4% in the first nine months of the current fiscal year. In the third quarter, organic growth was 11.3%. Taking into account portfolio and currency effects, the segment’s revenue rose to €2,349 million in the first nine months (9M 2023: €2,267 million). The portfolio effect from the sale of the beverage trading business in the UK within the Food & Beverage business unit had a negative impact of € 27 million on sales development.
The Food & Beverage division achieved double-digit organic growth in percentage terms. Strong growth impulses came from the application areas for sweet and savoury products and beverages. All four regions, especially the EAME region, achieved high growth. The Naturals application area increased its revenues, especially in the North America and EAME regions.
The business concluded that it has targeted overall growth of 7% for the full year of 2024, with long-term organic growth expectation of 5% to 7% (CAGR) remains its target, as it continues a pattern of development across its core market segments.
