During the economic downturn following October 2008, many ingredients companies felt the squeeze as their clients chose to use up their supplies before replenishing their stock levels. In many cases this translated into a sudden drop in orders.
The German company, which holds 4th spot in the flavour and fragrance top ten, saw groups sales up 16.4 per cent in the first six months of this year to €797.5m, compared to the same period of recession-struck 2009. In flavour and nutrition sales were up 12.9 per cent, and in fragrance and care 19.9 per cent.
“We successfully capitalised on the economic recovery and enjoyed above-average growth in the first half of 2010,” said CEO Dr Heinz-Juergen Bertram. “Our customers’ order patterns have normalised again compared to 2009, and we were in particular able to expand our business with our key customers.”
In the flavour and nutrition area the most growth has been in the sweet and beverage flavour areas. In particular, it launched some new products to extend its Naturally Citrus line, which is mostly for use in soft drinks.
Regionally-speaking, emerging markets led the way. Latin America saw 21 per cent growth, again driven by sweet and beverage flavours; followed by Asia Pacific with 14 per cent growth driven by beverage application advances.
In the more established North American and EMEA markets, growth rates were 13 per cent and 8 per cent respectively.
Sales to Symrise’s top 10 customers grew 16.7 per cent in local currencies, and in Q2 it secured two new core listings.
Also in Q2, Symrise announced major plans to grow its menthol business. Its capacity for this important flavour is set to almost double by 2012.
In scent and care, where fine fragrances and personal care had been most hit by the economic downturn, double digit sales growth was seen in EMEA, Asia Pacific, and North America. In Latin America, growth was 9 per cent.
Sales to core customers grew 12.8 per cent.
Symrise has said that, based on the strong first half, it is expecting full year sales growth of at least 8 per cent. It is aiming for an EBITDA margin of over 20 per cent.