Today, Symrise AG, a global leader in fragrances, flavorings, cosmetic active ingredients, and raw materials, released its H1 2024 has continued its trajectory of profitable growth in the first half of 2024. Despite facing a challenging global environment, the company significantly boosted both its sales and profitability, primarily through stringent cost management.
Sales for Symrise rose by 6.3% to €2,565 million, up from €2,414 million in H1 2023. When excluding portfolio and exchange rate effects, the organic sales growth was 11.5%, driven by strong performances across its segments. This success has enabled Symrise to reaffirm its long-term targets.
In the Scent & Care segment, Symrise reported organic sales growth of 14.1%, with sales reaching €993 million, a 12.1% increase from €886 million in H1 2023. The Fragrance division showed strong organic growth, particularly in the Fine Fragrances business unit, which continued its dynamic development with double-digit percentage growth. The Asia/Pacific and Latin America regions experienced significant growth, alongside robust performance in the Consumer Fragrances and Oral Care business units.
The Aroma Molecules division saw a remarkable recovery in sales in the first half of 2024, despite ongoing market challenges. The resumption of production at Colonels Island, USA, contributed to high double-digit growth rates, especially in the EAME and Asia/Pacific regions.
The Cosmetic Ingredients division also performed strongly, posting double-digit percentage organic growth. The EAME, Asia/Pacific, and Latin America regions showed significant sales increases, with the sun protection and Micro Protection business units leading the growth. However, growth in North America was more modest compared to the previous year.
Even amidst the volatile market conditions caused by geopolitical tensions and sustained high inflation, Symrise remains on a solid growth path. The company attributes its resilience to its robust, sustainable business model, diverse application portfolio, and extensive regional presence and customer base.
Symrise has set its sights on continued rapid growth, expecting organic sales growth between 5% and 7% for 2024, with an EBITDA margin target of around 20%. Additionally, the Group aims for a business free cash flow rate relative to sales of 12% in 2024. The company plans to maintain strict cost control through its efficiency program.
Looking ahead, Symrise has ambitious long-term goals, aiming to increase sales to between €7.5 and €8.0 billion by 2028. This target will be supported by annual growth of 5% to 7% (CAGR) and strategic acquisitions, with profitability (EBITDA margin) expected to remain in the 20% to 23% range.
