The margin target that was lowered shortly before Christmas was achieved. In 2024, the fragrance and flavor manufacturer wants to increase its sales again in line with its medium-term goals and also sees returns at the lower end of the target corridor again, as the company in Holzminden announced.
With adjusted EBITDA of 903.5 million euros, Symrise recorded 2 percent less operational profit than in the previous year. Meanwhile, sales rose by 2.4 percent (organic: 7.9 percent) to 4.730 billion euros. The adjusted EBITDA margin reached 19.1 percent, which was at the lower end of the forecast of 19 to 19.5 percent that was lowered in mid-December.
One-off negative effects totaling 51.8 million euros are excluded here, primarily as a result of a production shutdown at the US factory Colonel Island as well as expenses for the realignment of the Scent & Care segment and in connection with the ongoing antitrust investigation. Symrise therefore only earned net income of 340.5 million euros – 16.2 percent less than in the previous year. Nevertheless, as analysts expected, shareholders should receive a dividend of 1.10 euros – 5 cents more than last year.
In 2024, Symrise wants to achieve organic sales growth of 5 to 7 percent and generate a return on sales based on EBITDA of around 20 percent. This corresponds to the medium-term margin target of 20 to 23 percent. By 2025, Symrise is planning sales of 5.5 to 6 billion euros and by 2028 it should be 7.5 to 8 billion euros.
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Strong growth helps Symrise reach the top of the DAX
Symrise’s business figures and the targets set for 2024 drove shares higher on Wednesday. With a premium of 6.33 percent to 102.65 euros, they were clearly at the top of the leading index DAX via XETRA.
The fragrance and flavor manufacturer wants to become more profitable again in 2024. With growth above that of the relevant market, which is expected at 3 to 4 percent, a profit margin before interest, taxes, depreciation and amortization (Ebitda) of around 20 percent should be achieved. Specifically, Symrise is targeting sales growth of 5 to 7 percent.
Analyst Thomas Maul from DZ Bank suspected that the accelerated growth in the final quarter of 2023 would be well received by the market. Symrise exceeded the consensus estimate here. The expert sees the adjusted operating margin (Ebitda) in the second half of the year as a downer. This year, however, measures for greater efficiency, stable raw material prices and an improved product range should support profitability.
The Symrise share price reached interim lows of around 92 euros in January and February. From these lows, the price has now risen significantly again.
In mid-December, the company lowered its margin target, which caused the share price to fall by almost 8 percent. With the closing of the gap in the price at a good 106 euros, the technical chart situation would improve even further.
FRANKFURT (Dow Jones / dpa-AFX)
Image source: Symrise