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Symrise Stock Down On FY22 Warning; Buys Minority Stake In Danish Aroma Startup EvodiaBio

Shares of Symrise AG (SYIEY.PK) were losing around 6 percent in the morning trading in Germany after the producer of flavours and fragrances warned about its fiscal 2022 results over the week end due to an impairment loss. The company further reaffirmed its long-term growth and profitability goals.

On Monday, Symrise announced that it has acquired minority stake in Danish aroma company EvodiaBio. The minority share is expected to strengthen sustainable taste solution offering.

Symrise said it has joined the group of international investors to support the fast-growing bio-industrial startup, which raised 45 million Danish kroner for ambitious growth strategy.

EvodiaBio, founded one-and-a-half-years ago, has developed a ground-breaking technology platform that uses precision fermentation to produce sustainable taste for the food and beverage industry.

The startup also received financial support from the BioInnovation Institute, a Danish accelerator funded by the Novo Nordisk Foundation.

In December, EvodiaBio announced that it has secured 45 million kroner or $6.4 million in additional funding.

Symrise last Friday said it anticipates lower consolidated key results than expected for the past 2022 fiscal year. This is mainly due to an impairment loss of 126 million euros relating to the interest in Swedencare AB, a manufacturer of premium products for pets, which Symrise recognized in the fourth quarter.

In the reporting period, the company generated organic growth of 11.4 percent and Group sales of 4.62 billion euros with good profitability, i.e., EBITDA of 20 percent without impairment. The preliminary EBITDA amounted to 921.6 million euros, up from 813.6 million euros last year. Including the impairment, EBITDA amounted to 795.4 million euros.

Symrise further reaffirmed its long-term growth and profitability goals. The company remains confident that it will continue to grow at a faster pace than the relevant market and increase its average annual sales by 5 to 7 percent (CAGR).

In the medium term, Symrise aims to achieve an EBITDA margin of 20 percent to 23 percent by the end of the 2025 fiscal year.

Symrise plans to publish 2022 annual report on March 8.

In Germany, Symrise shares were trading at 98.40 euros, down 6.29 percent.

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