BERLIN – Citing a gloomy market environment in some regions and high raw material prices, Symrise reported a 25 percent drop in second-quarter 2011 net income to 36.3 million euros, or $52.2 million.
The Holzminden, Germany-based fragrance and flavors maker posted sales of 395 million euros, or $568.2 million, down 2.8 percent in the three months ended June 30 against the same prior-year period.
In the first half of 2011, Symrise’s net profits declined 12.8 percent to 77.4 million euros, or $108.6 million. Earnings before interest and taxes fell 10 percent to 120.7 million euros, or $169.3 million, while earnings before taxes, depreciation and amortization (EBITDA) decreased 9 percent to 162.5 million euros, or $228 million. The company met its EBITDA margin target of 20 percent in the six months ended June 30.
Symrise’s scent and care division, which generates more than 50 percent of group sales, registered first-half revenues of 409.5 million euros, or $574.4 million, down 0.6 percent. In local currencies, sales grew 0.3 percent. EBITDA for the division fell 10 percent to 76.9 million euros, or $107.9 million, and its EBITDA margin was 18.8 percent.
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“Following the enormous catch-up effect during the previous year and a good first quarter, market growth slowed in the recent months,” stated Heinz-Jürgen Bertram, Symrise’s chief executive officer. “Whereas the flavor business continued to grow, the demand for fragrances declined. Nonetheless, Symrise continued to grow throughout the first half of the year.”
Despite the subdued second quarter, Symrise targets sales growth of 3 percent for 2011.