Symrise AG, a global leader in fragrances and cosmetic active ingredients, released its financial report for the 2023 fiscal year, showcasing growth in sales despite challenging economic conditions.
In 2023, the company achieved sales of €4.73 billion, a 2.4% increase in the reporting currency. Excluding portfolio and currency effects, organic sales growth reached 7.9%. However, there was a slight decline in profitability, with adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) totaling €903.5 million, a decrease of €18 million compared to the previous year.
Despite geopolitical crises, rising operating costs, and market volatility, Heinz-Jürgen Bertram, the CEO of Symrise AG, expressed optimism about the company’s future. Symrise responded swiftly to improve the cost situation and made strategic acquisitions and partnerships to enhance its portfolio. Symrise also announced that the change of leadership, set to take place at the end of March, is progressing as planned.
Jean-Yves Parisot, the incoming CEO, expressed commitment to building upon Symrise’s potential and prioritizing customer needs.
As for regions, sales development varied across regions, with the Europe, Africa, Middle East (EAME) region witnessing positive growth of 15.3% organically. North America faced challenges due to the production stoppage at Colonel Island, resulting in a 1.8% decline in organic sales. The Asia/Pacific region achieved 4.0% organic sales growth, while Latin America showed dynamic growth of 14.7%.
As for segment, within the Scent & Care segment, sales reached €1.752 billion, a 2.7% increase. The Fragrance division experienced high single-digit organic growth, driven by the Fine Fragrances business unit and recent acquisitions. The Consumer Fragrances business unit also achieved positive growth. In the Aroma Molecules division, sales were negatively affected by market challenges and the production stoppage at Colonel Island. The Cosmetic Ingredients division continued its positive growth trend, especially in the EAME and Latin America regions.
Symrise reaffirmed its long-term growth and profitability goals, aiming to outpace the relevant market. The company’s forecasted long-term growth is expected to be 5% to 7% (CAGR) by 2024, with sales targets of €5.5 billion to €6 billion by the end of 2025 and €7.5 billion to €8 billion by 2028.
