Added benefits drive growth for Symrise flavours and nutrition
in sales and profits for its Flavours and Nutrition Division in
full year 2006, largely attributed to innovations like its 'and'
range of products.
The division reported a strong 7.5 per cent increase in sales, to €583m, in 2006. Adjusted EBITDA rose from €105.7m in 2005 to €130.3m in 2006. The 'and' products are intended to give customers an addition benefit, such as for health and wellness. The company's strategic focus has been on the marketing launch of its Taste for Life program, aiming to promote good taste and healthy eating as concepts that can go hand-in-hand. For instance, its has been marketing flavours that can help retain the taste of established products - but in formulations containing less sugar, salt and fat. In addition, Symrise has concentrated on growing its relations with major customers ion the flavours and nutrition sector, and on continuing to expand its core list positions. It says these steps have already paid of. "We succeeded in recording disproportionately fast growth with global food and beverage manufacturers," said the company. Following a period of restructuring, The company announced that sales grew by 7 per cent in 2006 to reach €1.229bn - a figure largely attributable to the successful implementation of its realignment. Adjusted EBITDA, which did not take into account non-recurring factors, grew from €193.1m to reach €243.2m, while adjusted EBITDA, which took into account expenses incurred during the company's restructuring programme and its recent IPO, meant that net losses came in at €89.9m. "We reached our ambitious targets in every respect and grew considerably faster than the market," said Gerold Linzbach, chairman of the managing board. "This dynamic development has continued in the initial weeks of the current financial year, too. We are therefore confident about the rest of the year." He also stressed the fact that the it had been able to build on its existing core suppliers, due to its strategy in the research and marketing fields, underlined by the development of products that have 'additional benefit'. Looking ahead, Symrise said that its focus on new products and improvement to services is likely to drive strong market growth in 2007. The company said it believes it is in a good position to achieve average sales growth of 5 per cent per annum in 2007 and 2008, which adjusted EBITDA is likely to exceed 20 per cent during the period as the benefits of restructuring kick in.
