Results Pet food is growth driver for Symrise

by Editor fleischwirtschaft.com
Wednesday, April 29, 2020
All segments contributed to the positive development and posted gains despite the challenging global economic conditions under Covid-19.
Photo: Symrise
All segments contributed to the positive development and posted gains despite the challenging global economic conditions under Covid-19.

Symrise remains on track for growth in the fiscal year 2020. In the first quarter, sales were up by 8% to € 917.1 mill. (Q1 2019: € 848.8 mill.). All segments contributed to this positive development and posted gains despite the challenging global economic conditions under Covid-19. In organic terms, sales were up 2.3 % after strong comparative figures in the prior-year quarter.

"The Covid-19 pandemic is proving a tough test for the global economy. We continue to be fully operational and are making every effort to supply our customers with the reliability they are used to," said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. "With our broad range of product solutions for foods and beverages, personal care and hygiene, we serve especially in these times the needs of everyday life."

Weaker demand in China with negative impact

In the Flavor segment, which supplies flavor ingredients for foods and beverages, sales increased by 2.2% to € 322.6 mill. (Q1 2019: € 315.6 million).

In EAME, the highest growth rates were recorded in applications for beverages and savory products, especially in the national markets in Germany, Eastern Europe, the Middle East, and South Africa. Sales in applications for sweets were slightly below the prior-year quarter.

In the Asia/Pacific region, sales growth in the beverages application area was in the high single-digit percentage range and reached even double-digit growth rates in savory applications. The national markets of Singapore, Indonesia, Vietnam and Bangladesh developed particularly pleasing. By contrast, the currently weaker demand in China had a negative impact on the overall positive regional development.

In North America, the application areas for beverages and sweet products were slightly below the strong prior-year level. The savory business achieved solid growth with regional and global customers.

Business in Latin America developed dynamically and achieved high single-digit percentage growth for sweet products. At the same time, sales for beverage and savory products grew in the double-digit percentage range. Demand for beverage application products was particularly strong in the national markets of Brazil and Uruguay.

Pet food is growth driver achieves strong results

In the Nutrition segment, which includes Diana (food, pet food and probiotics applications) and the activities of ADF/IDF, sales increased by 36.2% to € 226.1 mill. (Q1 2019: € 165.9 million). ADF/IDF contributed € 52.5 mill. to total segment sales in the period under review. Acquired in 2019, ADF/IDF continues to meet all expectations. The integration is well on track and the Group will continue opening up new opportunities to drive future growth in the segment. Adjusted for portfolio and exchange rate effects, organic growth amounted to a very good 6. % in the period under review.

Demand in the pet food business again showed a very pleasing double-digit percentage gain in organic terms, with dynamic growth continuing especially in the Latin America and Asia/Pacific regions.

Sales in the application area food developed moderately in the first quarter. The Latin America region delivered strong results, above all in the national markets in Chile and Brazil.

The probiotic business achieved organic growth in the double-digit percentage range. The North America and Asia/Pacific regions developed particularly dynamically.

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