FX.co ★ Symrise Q3 Sales Up, Now Sees FY24 Organic Sales Growth At Top End Of View; Backs Long-term Outlook

Symrise AG (SYIEY.PK), a prominent German manufacturer specializing in flavors and fragrances, announced on Thursday that it experienced a 5.2% increase in third-quarter sales in its reporting currency, with total sales growing organically by 10.2%.

For the first nine months of fiscal year 2024, the company's revenue climbed to 3.82 billion euros, a 5.9% rise from the previous year's 3.61 billion euros, alongside an organic sales increase of 11.1%.

The company highlighted that both major segments contributed to this positive sales trajectory, despite operating in a persistently challenging global economic environment.

The Taste, Nutrition & Health division saw its revenue increase to 2.35 billion euros, up from last year's 2.27 billion euros. This segment exhibited an organic sales growth of 10.4% over the nine-month period and 11.3% in the third quarter alone.

Meanwhile, the Scent & Care division, dealing with fragrances, perfumery applications, and cosmetic active ingredients, reported revenues of 1.48 billion euros, compared to 1.34 billion euros the previous year. This segment's organic sales grew by 12.2% over the nine months and 8.4% in the third quarter.

Key growth drivers included the Food & Beverage, Fragrance, Aroma Molecules, and Pet Food business units.

The company also reported that the Latin America region recorded the strongest organic growth at 27.4%, followed by the Asia/Pacific region at 11.2% and the EAME region at 11.1%.

In North America, the region achieved a 2.3% organic growth rate, primarily propelled by the Food & Beverage and Aroma Molecules units.

Looking forward to fiscal year 2024, Symrise has revised its full-year sales target, now anticipating an organic growth rate of approximately 7%, up from the previously estimated range of 5% to 7%.

The Group maintains its long-term organic growth projection of 5% to 7% (CAGR), with an anticipated long-term EBITDA margin remaining between 20% and 23%.

CEO Jean-Yves Parisot stated, "Symrise successfully continued its positive business trajectory into the third quarter. Despite current market volatility caused by geopolitical tensions and persistent inflationary pressure, we remain optimistic for the remainder of the year and foresee robust demand."