Symrise, a leading global provider of fragrances and flavorings, has reported a strong financial performance in the first nine months of the year. Group sales for the period reached €3.61 billion ($3.82 billion), achieving organic sales growth of 7.4%, representing a 3.3% increase compared to the same period last year, when considering portfolio and exchange rate effects.
Geographically, the Asia/Pacific region achieved solid organic growth of 3.5%, primarily driven by the Fragrance, Food & Beverage, and Cosmetic Ingredients divisions. Sales growth was particularly strong in the Latin America and EAME regions, with organic growth rates of 16.0% and 15.1% respectively. The Food & Beverage, Pet Food, Fragrance, and Cosmetic Ingredients divisions were the main drivers of growth in these regions. However, sales in North America were impacted by the production shutdown at Colonel Island, resulting in a 3.4% organic sales decline compared to the previous year.
As for the Scent & Care segment, which encompasses perfume applications, fragrance, and cosmetic ingredients, Symrise achieved organic sales growth of 4.1% in the first nine months of 2023. Taking into account portfolio and exchange rate effects, sales in this segment amounted to €1.343 billion ($1.42 billion). The acquisitions of Groupe Néroli and Romani made in 2022 contributed approximately €15 million ($15.87 million) to sales.
In the Fragrance division, organic sales increased by a single-digit percentage in the first nine months, with the Fine Fragrances business unit experiencing dynamic growth and achieving double-digit percentage growth. Strong sales growth was observed in the EAME and Latin America regions. The Consumer Fragrance business unit also achieved single-digit percentage organic growth, with strong performance in the Latin America and EAME regions. The Oral Care business unit achieved single-digit percentage organic growth, driven by strong growth in the Asia/Pacific and Latin America regions.
The Aroma Molecules division faced challenges in the market environment and was impacted by the production shutdown at Colonel Island, USA. Demand for fragrance ingredients and menthol was affected by customer-side destocking, leading to a significant decline in sales compared to the previous year. However, with the recent resumption of production at Colonel Island, Symrise expects an improvement in the sales situation in this division during the fourth quarter.
The Cosmetic Ingredients division continued to perform well, achieving double-digit percentage organic growth in the first nine months of the year. Sales growth was particularly significant in the EAME, Asia/Pacific, and Latin America regions, with strong performance seen in Micro Protection and sun protection product lines.
Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG, expressed satisfaction with the positive sales trend in the third quarter. Despite facing challenges such as high inflation and market volatility, the company remains optimistic about the rest of the year and expects robust demand. The company thus has extended its long-term growth targets until 2028, aiming for continued organic growth of 5% to 7% and an EBITDA margin of 20% to 23%.