Symrise AG which is a leading global supplier of fragrances and flavors, cosmetic and active ingredients as well as functional products released its annual report for financial year 2024-2025. The company continued to significantly increase its sales and earnings growth in the 2024 financial year despite challenging economic conditions. Symrise has confirmed its mid-term growth and profitability targets until 2028.
Growth in Sales of Symrise AG
The company generated sales of € 4,999 million which is an increase of 5.7% as compared to FY 23. After excluding portfolio and currency effects, the organic sales growth amounted to 8.7%.
Region-Wise Development in Sales
The group’s businesses in the Europe, Africa, and Middle East (EAME) region performed well in the last financial year.
North America
Sales grew organically by 10.9% in North America and were positively impacted by the resumption of production at the Colonel Island site. After a decline in sales in the previous year, organic sales growth of 1.5% was achieved in 2024.
Asia/Pacific Region
The company achieved organic sales growth of 9.3% year-on-year in the Asia/Pacific region.
Latin America
Sales in Latin America were very dynamic, with organic growth of 15.2%.
Growth in EBITDA
The group’s Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to €1,033 million which is €130 million more than the previous year’s figure of €903 million. This corresponds to a margin of 20.7% (2023: 19.1%1).
“We are proud of what we have achieved in 2024 and are well-positioned for the future. Last year, Symrise once again demonstrated that our unique, diversified portfolio enables us to grow highly profitably even in times of geopolitical uncertainty, rising costs, and high volatility in our core markets. We used the year to further sharpen our portfolio and greatly improve the cost situation. This creates a very good basis for our long-term success, and we are also very confident for the current year.”
Dr. Jean-Yves Parisot, CEO, Symrise AG
Earnings Performance and Net Income by Symrise AG
Profitable Sales Growth
The profitable sales growth and the execution of the efficiency program were important drivers of the positive development of earnings. The gross margin reached 39.3% in 2024 which is an increase of 2.5 percentage points versus the previous year (2023: 36.8%2).
EBITDA
Earnings before interest, taxes, depreciation, and amortization (EBITDA) of Symrise AG grew to €1,033 million. It is an increase of €130 million as compared to the previous year’s figure which stood at €903 million. This corresponds to a margin of 20.7% (2023: 19.1%2).
Net Income Attributable to Shareholders
Net income attributable to shareholders of Symrise AG amounted to € 478 million and was € 138 million higher than in the previous year which stood at € 340 million in 2023. Further, earnings per share of the company amounted to €3.42 and were €0.98 above the previous year’s figure of €2.44.
Cash Flow
Operating Cash Flow
The operating cash flow of Symerise AG amounted to €895 million which was significantly higher than €720 million in 2023. The operating cash flow ratio as a percentage of sales was 17.9%.
Business Free Cash Flow
Business free cash flow is an important internal performance indicator. It consists of EBITDA, capital expenditures (including cash effects from leasing), and changes in working capital. It increased significantly to €680 million in the financial year as compared to €553 million in 2023. The business free cash flow ratio improved to 13.6% (2023: 11.7%2) of sales.
Net Debt
Net debt of Symerise AG decreased by €330 million to €1,836 million compared with the reporting date of December 31, 2023. The ratio of net debt including lease liabilities to EBITDA was thus 1.8. If pension and lease liabilities were included net debt amounted to €2,343 million. It corresponds to a ratio of net debt (including lease liabilities and provisions for pensions and similar obligations) to EBITDA of 2.3.
Equity Ratio
The equity ratio of Symerise AG stood at 48.3% which was higher than i47.0% in 2023. It forms a very solid basis for continuing to grow the business in the long term.
Symerise AG Annual Report: Segment Wise Analysis
Taste, Nutrition & Health Segment
The Taste, Nutrition & Health segment of Symerise AG achieved organic sales growth of 7.8%. It takes into account portfolio and exchange rate effects. In FY 2024, the segment’s sales amounted to € 3,091 million which is an increase of 3.8%. The negative portfolio effect from the sale of the beverage trading business in the UK in the Food & Beverage division amounted to around €38 million.
Food & Beverage
In the Food & Beverage segment, the application areas for savory products and beverages developed very well. It achieved double-digit organic growth. The EAME (Europe, Africa, Middle East) and Asia/Pacific regions achieved high growth rates in this segment. However, the Naturals and Sweet application areas achieved low single-digit percentage growth with the strongest growth in the EAME and North American regions.
Pet Food
The Pet Food business achieved single-digit organic growth. Sales development was particularly dynamic in the Latin America and Asia/Pacific regions, including China, with double-digit organic growth. In the EAME region, Turkey, Belgium, and Spain in particular showed high growth.
Aqua Feed
The Symerise AG annual report recorded declining organic growth in sales development of the Aqua Feed business unit. Hence, the company further looked at portfolio streamlining with a focus on high-margin growth areas. It shows an intention to sell the business in Costa Rica and Ecuador.
EBITDA in the Taste, Nutrition & Health segment
The company’s EBITDA in the Taste, Nutrition & Health segment amounted to €686 million in the reporting year. It stood at €627 million in 2023. The increase is mainly due to profitable sales growth and increased efficiency. The EBITDA margin of 22.2% was significantly above the previous year’s level which stood at 21.0%.
Scent & Care Segment
In the 2024 financial year, the Scent & Care segment of Symerise AG generated sales of €1,908 million which corresponds to a growth of 8.9% as compared to the previous year. Excluding portfolio and currency effects, organic sales growth amounted to 10.2%.
Fragrance
The Fragrance business of Symerise AG increased its sales organically by a double-digit percentage. In particular, Fine Fragrances continued its dynamic development. After a strong previous year, it achieved a high single-digit percentage of organic growth. The growth rates were particularly high in the Asia/Pacific, Latin America, and EAME regions. In the Consumer Fragrance application area, double-digit percentage growth was achieved. The EAME, Asia/Pacific, and Latin America regions recorded high growth. The Oral Care application area of Symerise AG achieved single-digit organic percentage growth. In this segment, the North American region achieved Good growth rates.
Aroma Molecules
Sales in the Aroma Molecules division of Symerise AG recovered significantly in the 2024 financial year. The resumption of production in Colonels Island, USA has resulted in a significant year-on-year increase in sales despite a challenging market environment. The company recorded high double-digit growth figures in the EAME and North American regions in particular.
Cosmetic Ingredients
Sales in the Cosmetic Ingredients division of Symerise AG could not match the double-digit growth figures of the previous year and high single-digit percentage organic growth was achieved. Sales in the Latin America region developed encouragingly. It achieved a double-digit organic growth. The Asia/Pacific and EAME regions increased sales by a single-digit percentage. Only the North American region showed a slight year-on-year growth. The application areas for Micro-Protection and Active & Botanicals recorded the strongest growth rates.
Scent & Care
Scent & Care division of Symerise AG generated €347 million EBITDA in 2024. It was 25.4% higher than in the previous year at €277 million. It was mainly due to profitable sales growth and the efficiency program initiated in early 2024. The EBITDA margin was 18.2% (2023: 15.8%3).
Confirmation of long-term growth and profitability Targets
Symrise AG has confirmed its growth and profitability targets for 2025. It continues to expect to grow faster than the relevant market. The projected long-term growth of the relevant market is about 3% to 4% globally. The Group’s long-term growth expectation is 5% to 7% (CAGR). It is also expected to be achieved in 2025. Further, the Group is aiming to achieve an EBITDA margin of around 21% for 2025. For the medium term, it aims to target an EBITDA range of 21% to 23%. Further, it aims for a ratio of sales of around 14% for the Business Free Cashflow in 2025.