Symrise 9-month EBITDA Down 2%; Raises FY18 Sales Outlook - Quick Facts

Symrise AG (SYIEY.PK,SYIEF.PK), a supplier of fragrances, flavorings and cosmetic active ingredients, reported that its earnings before interest, taxes, depreciation and amortization or EBITDA for the first nine months of 2018 declined 2 percent to 475.7 million euros from 485.2 million euros in the year-ago period. EBITDA margin was 20.0 percent, compared to 21.3 percent last year.

The latest period's EBITDA result was impacted by increased expenditures for strategic growth projects such as the new Diana site in Georgia. Additionally, significantly higher costs for key raw materials and unfavorable exchange rate effects impacted profitability. Moreover, the result reflects a one-off effect.

Taking into account portfolio and exchange rate effects, Group sales for the nine months rose 4.6 percent to 2.38 billion euros from 2.28 billion euros in the year-ago period. Organic sales increased 8.8 percent.

Looking ahead, the Group has once again increased its 2018 sales target which had already been raised in August.

For fiscal 2018, Symrise now expects organic sales increase of more than 8 percent. With this growth rate Symrise would again significantly outperform the market which is expected to grow between 3 percent and 4 percent. Earlier, Symrise expected full-year sales growth of more than 7 percent.

The Group expects the shortage of raw materials to persist in the remaining weeks of 2018. Symrise considers itself well positioned to compensate for the market shortages on the basis of its own backward integration.

The company noted that the medium-term targets through to the end of the 2020 fiscal year remain in full effect, including a compound annual growth rate or CAGR in the 5 percent to 7 percent range, and an EBITDA margin between 19 percent and 22 percent.

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