Symrise Q1 Sales Up 12.7% Driving by High Demand for Cosmetic Ingredients
- Chaileedo Press
- Apr 27, 2023
- 2 min read
German flavour and fragrance producer Symrise reported sales growth of 12.8 % to €1230.2 million ($1359.94 million) in reporting currency in the 2023 Q1. Symrise said the growth in Q1 was partly due to high demand for cosmetic ingredients.
German flavour and fragrance producer Symrise reported sales growth of 12.8 % to €1230.2 million ($1359.94 million) in reporting currency in the 2023 Q1.
Symrise said the company made a successful start to the year due to sustained high demand and a diverse business portfolio. The growth was driven by both Scent & Care and Taste, Nutrition & Health segment.
Scent & Care, which deals with fragrances, aroma molecules, and cosmetic ingredients, saw a sales increase of 8.3% to €454.0 million ($501.88 million) in the first quarter compared to 2022 Q1. Organic sales growth was at 4.2%.
The Fragrance division had strong growth, particularly in the luxury segment. Fine Fragrances performed exceptionally well, with high double-digit growth compared to the previous year's first quarter. Consumer Fragrances also saw single-digit growth, driven by demand for hygiene and cleaning products.
However, the Aroma Molecules division faced challenges in a difficult market environment, resulting in declining sales due to increased competition from Asia and high customer inventories leading to lower sales volumes. Demand for menthols and terpenes products also declined compared to the previous year.
On the other hand, the Cosmetic Ingredients division continued to grow strongly, with double-digit organic growth in the first quarter. The growth was mainly driven by the EAME regions and Latin America, particularly in the application areas of active cosmetic ingredients.
Symrise's Taste, Nutrition & Health segment, which focuses on taste solutions for food and beverages, pet food, and nutrition, experienced a sales increase of 15.6% to €776.1 million ($857.95 million) in the first quarter. Organic growth was at 14.6%, and all regions contributed to this positive result. The Latin America and EAME regions were particularly strong growth drivers.
Dr. Heinz-Jürgen Bertram, CEO of Symrise AG: “Symrise was able to seamlessly continue last year's positive business development at the beginning of this year. Despite high inflation and continued volatility in our markets, we are optimistic about the rest of the year and expect robust demand. Our diversified portfolio and our broad international positioning will also help us realize our growth potential and create lasting value this year. We therefore also confirm our outlook. For the current fiscal year, we are aiming for organic sales growth of 5 % to 7 % and an EBITDA margin of around 20 %."
Source: Symrise
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