Symrise reports that it achieved profitable growth in the fiscal year 2017 and reached all of its targets. The Group increased sales by 3.2 % to €2,996.3 million (2016: €2,903.2 million). Excluding portfolio and currency effects, organic sales growth amounted to 6.3 %. Symrise says it profited especially from the dynamic performance of the Flavor and Nutrition segments and strong demand in the EAME and Latin America regions. Despite currency effects and investments into the expansion of capacities, the Group raised its EBITDA by 1% to €630.3 million (2016 normalized: €625.2 million). With an EBITDA margin of 21.0 %, Symrise exceeded its 20.0 % target and was, it says, once again one of the most profitable companies in the industry (2016 normalized: 21.5 %).

"2017 was yet again a successful year for Symrise. For the twelfth year in a row we achieved very satisfactory increases in sales and earnings, especially in terms of organic growth. Despite further investments into our expansion, volatile exchange rates and rising raw material prices over the course of the year, we operated yet again highly profitable. To allow our shareholders to participate in this success, the Executive Board and Supervisory Board will therefore propose a dividend of € 0.88 at the Annual General Meeting," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG. "We are also optimistic about our prospects in 2018. We have made a dynamic start and feel confident that, with our strong market position, increased internal sourcing of raw materials, and the targeted expansion of capacity, we are very well positioned."

Sales in the Flavor segment increased to €1,101.9 million in the year under review (2016: €1,015.9 million). The segment achieved very strong growth of 8.5%. Excluding the portfolio effect from the acquisition of Cobell and currency effects, organic growth amounted to a very healthy 9.3%.

All regions and application areas contributed to the positive sales development. The segment continued the successful trend of recent years, particularly in Europe, Africa and the Middle East (EAME) as well as in North America. Growth was particularly strong in the Sweets and Beverages application areas as a result of new business with vanilla flavorings.

EBITDA in the Flavor segment amounted to €242.9 million (2016: €233.8 million). This represents a 3.9% increase as compared with 2016. The EBITDA margin was a very satisfactory 22.0% (2016: 23.0%).

Nutrition posted a substantial 9.6% year-on-year plus in sales to €631.3 million (2016: €576.0 million). Adjusted for portfolio and currency effects, organic sales growth in the segment amounted to 6.5%.

The pet food application area was again one of the strongest growth drivers, with at least single-digit and sometimes even double-digit sales growth in local currency in all four regions.

The segment increased its EBITDA by 4.3% to €139.4 million (2016: €133.7 million). The EBITDA margin was 22.1% (2016: 23.2%).

After what it describes as a dynamic start in the first quarter, Symrise says it is confident of further development in the fiscal year 2018. The Group is expecting a healthy global economic growth. However, the debt situation of some countries will continue and some currencies will remain volatile. Moreover, Symrise expects overall raw material costs to increase significantly. The Group has been actively pursuing backward integration in key natural raw materials for years. As a result, Symrise is in a good position through close cooperation with producers and long-term contracts.

For the current fiscal year, Symrise says it remains committed to its target of growing faster than the relevant market at Group and segment levels. Estimates place worldwide market growth in the 3–4 % range. Moreover, despite the currently tense raw material situation, Symrise intends to maintain its strong profitability, and is therefore targeting an EBITDA margin of around 20 %.

Symrise is also reaffirming its objectives set for the end of the fiscal year 2020: a compound annual growth rate (CAGR) of 5–7% and an EBITDA margin in the range of 19–22%.