Report for the 1st quarter of 2008: Symrise sta...

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Corporate news announcement processed and transmitted by Hugin ASA.
The issuer is solely responsible for the content of this 
announcement. 
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  * Sales and earnings 6 per cent higher
  * Positive outlook for the full year

(Holzminden/Frankfurt) Symrise AG made a successful start to the new
2008 financial year despite a considerably more difficult economic
environment: sales in the 1st quarter increased from EUR 331.2
million to EUR 338 million, an increase of 2.0%. On a local currency
basis, this represents growth over the same quarter the previous year
of 6.4 per cent.
 
Adjusted for the effects of currency translation, earnings before
interest, tax and amortisation of intangible assets (EBITA) increased
by 6.2 per cent. At actual exchange rates, EBITA decreased from EUR
63 million to EUR 62 million, which corresponds to a reduction of 1.6
per cent. This development in company earnings reflects the pace of
increase in the value of the Euro, particularly in March. Adjusted
earnings per share were up 15.4%.
 
On the balance sheet, the equity ratio improved from 31.9 per cent at
the end of March 2007 to 36.9 per cent.
 
Flavor & Nutrition
 
The Flavor & Nutrition division had a strong first quarter in all
regions and business units: sales increased by 5.6 per cent - from
EUR 149.8 million to EUR 158.2 million - and by 9.7 per cent in local
currencies.
 
Scent & Care
 
On a local currency basis, sales in the Scent & Care division were
3.7 per cent higher in the first quarter of 2008 at EUR 179.8
million; they decreased by 0.9 per cent at actual exchange rates. The
Life Essentials business unit achieved growth of 8.8 per cent in
local currencies, whereas the Fragrance business unit recorded
figures that were in line with the previous year.
 
Both divisions succeeded in increasing sales with key accounts, with
sales to the ten largest Scent & Care customers increasing
disproportionately fast compared with total division sales. Business
with what are known as "AND" products - products with additional
benefits - rose by a further 6.7 per cent (in local currencies) and
double-digit local currency basis growth was achieved in sales to
emerging markets. A regional breakdown shows that Symrise recorded
good growth primarily in Eastern Europe, Africa, the Middle East and
the emerging Asian markets. Raw material cost increases were
compensated for by improvements in production efficiency; gross
margin was only depressed by higher energy costs and a less favorable
product mix.
 
The division highlights in the first quarter of 2008 included the
take-over of the Chr. Hansen flavor operations to strengthen the
North American business in the Flavor & Nutrition division and the
strategic partnership with Cambridge Theranostics in the Scent & Care
division, the aim of which is to co-operate on opening up the market
for health & medical food. To take account of the broader focus of
the Cosmetics business unit to include the beauty and health fields,
this unit was renamed Life Essentials.
 
Outlook
 
"In view of our presence in the fast-growing regions of the world and
our concentration on selected market segments that are growing
rapidly, we continue to be confident that our business will grow
disproportionately fast: we are therefore confirming the forecasts we
made in our 2007 Annual Report, i.e. sales growth of 5 to 6 per cent
and EBITA growth of 10 per cent on a local currency basis. It is
difficult to predict how exchange rates will develop in future and
what impact this will have on the results we report. The relative
stability of the Euro in recent weeks is certainly a positive sign in
this context", says Dr Gerold Linzbach, CEO of Symrise.
 
Key financials for the first 3 months of 2008
 

                                                        
                 Q1 | 2007 Q1 | 2008 Change            Change
                 in ¤      in ¤       in % (at actual  in % (in local
                  millon    millon   exchange rates)   currency)
                                                        
Sales            331.2     338       2.0%              6.4%
- Scent & Care   181.4     179.8     -0.9              3.7
- Flavor &       149.8     158.2     5.6               9.7
Nutrition
EBITA            63.0      62.0      -1.6              6.2
EBITA- margin in 19.0      18.3                         
%
EBIT             54.2      54.2      0.1               8.7
EBIT- margin in  16.4      16.0                         
%
Net income for   29.2      24.9      -14.7              
the period
 
Earnings per     0.25      0.21      -14.7              
share
 
Adjusted         0.29      0.30      6.2               15.4
earnings per
share
 
No. of employees 4.819     4.926     2.4                
(on the
qualifying date)
                                                        

 
About Symrise
 
Symrise is a global supplier of fragrances, flavorings and raw
materials and active ingredients for the perfume, cosmetics and food
industry.
 
Its sales of ¤1.27 billion in 2007 place the company among the top
four in the international flavors and fragrances market.
Headquartered in Holzminden, Germany, Symrise is represented in more
than 30 countries in Europe, Asia, the United States and South
America.
 
With more than 40 first patent applications per year, Symrise is one
of the most innovative manufacturers on the market. Used by
manufacturers of perfumes, cosmetics and foods, our products are an
inseparable part of daily life. At Symrise we combine an awareness of
consumer trends with cutting-edge technologies, focusing on
innovative fashion and lifestyle products that have additional
practical value for the consumer. Symrise - always inspiring more.
 
www.symrise.com
 
 
Contact:
Katja Derow
Tel.: [phone] or [phone]
[e-mail]


 
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Symrise AG
Mühlenfeldstraße 1 Holzminden Germany

WKN: SYM999; ISIN: 
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