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Symrise reports rise in H1 earnings as it confirms Diana acquisition

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By Nathan Gray+

08-Aug-2014
Last updated on 08-Aug-2014 at 13:17 GMT

Symrise has reported strong H1 results, while also announcing the completion of its deal to buy Diana Group and admitting more acquisitions may be on the horizon.
Symrise has reported strong H1 results, while also announcing the completion of its deal to buy Diana Group and admitting more acquisitions may be on the horizon.

Success in emerging markets has helped fragrance and flavours giant Symrise to a 9% rise in earnings in the first half of the year, as the company begins to integrate Diana Group in to its business.

The German firm said it remains on course for a strong year as it reported a 5.9% increase in sales at local currency and EBITDAN growth of 9% (to €191 million) compared to the same period last year.

Symrise said it benefited from a strong presence in emerging markets, reporting a sales increase of 9% at local currency – with the Latin American market providing particularly strong growth for the company.

“Symrise is entering the second half of the year with full steam ahead,” said Symrise CEO Dr Heinz-Jürgen Bertram. “In the first six months we have grown significantly and improved our profitability even further.”

The recent acquisition of Diana Group was also confirmed by Symrise, with the company stating that the integration process for the French firm is already underway. The deal to buy Diana Group will see Symrise ‘significantly enhance’ its access to natural raw materials, in addition to helping it to tap in to the pet food market. The German group also said that it will harness technology acquired in the €1.3 billion takeover to expand further into nutritional supplements.

“We’re not just focused on flavours or fragrances, we are looking at a wider area of wellbeing and well-appearance,” Bertram said. “Nutrition expansion was logical.”

“I am certain that we will further accelerate our profitable growth together with Diana,” he added – noting that Symrise will now fully concentrate on the integration process “in the areas of research and development as well as production and sales.”

Flavour and nutrition business

Symrise AG reported that its Flavour & Nutrition business unit generated a sales growth of 6 % at local currency to €449m (compared to €44m in 2013), with emerging markets providing an ‘important contribution’ to such growth.

Latin America was the fastest-growing region, generating sales growth of 12 % at local currency, said the German ingredients giant. In Asia/Pacific, the business unit saw sales growth of 8 % at local currency, while the EAME region saw a 5% rise and North America by 3%.

“In reporting currency this corresponds to a sales increase of 1 %,” said the firm

More deals on the horizon?

Symrise CFO Bernd Hirsch recently suggested that the firm will begin to consider new acquisitions in 2015, but warned that consolidation between the top flavour and fragrance firms such as Givaudan would not make any sense.

Speaking to German newspaper Boersen-Zeitung earlier this week, the CFO was quoted as saying that the firm would focus ‘100%’ on the integration of Diana Group for the next six months, but that after that period of recharging it would begin to manoeuvre for new deals in 2015.

"I don't see that we'll be limited in any way whatsoever in the coming year, should we look around for further takeover targets.”

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