HOLZMINDEN (dpa-AFX) - Symrise AG (SYIEY.PK, SYIEF.PK), a supplier of fragrances, flavorings and cosmetic active ingredients, reported Wednesday that its fiscal 2018 net income increased 1.9 percent to 275 million euros from 270 million euros last year. Earnings per share improved to 2.12 euros from 2.08 euros last year.
EBITDA for the year was 631 million euros, compared to 630 million euros last year. EBITDA margin was 20 percent, compared to 21 percent last year.
Sales for the year increased 5.3 percent to 3.15 billion euros from 3.00 billion euros a year ago. Excluding portfolio and currency effects, organic sales growth was 8.8 percent.
Symrise noted that the year's strong performance was carried by all segments and regions. Despite targeted investments in increased capacity at locations in China and the U.S., as well as negative effects from exchange rates and raw material costs, Symrise retained its earnings power.
Further, the company said its Executive Board and Supervisory Board will propose an increase in the dividend to 0.90 euro per share from 0.88 euro per share last year, at the Annual General Meeting on May 22.
Symrise said it is looking ahead to the current fiscal year with confidence. The Group again aims to exceed the overall growth rates in the relevant market. The market is projected to grow at a rate of 3 percent to 4 percent worldwide.
In addition, Symrise is targeting an EBITDA margin of around 20 percent despite the anticipated economic slowdown, ongoing volatility in exchange rates and a tight market for raw materials.
At the Capital Markets Day in January 2019, Symrise presented its long-term targets that underscore the Group's ambition and now extend to the end of fiscal year 2025. By then, Symrise aims to increase sales to around 5.5 billion to 6.0 billion euros. This increase is to be achieved through annual organic growth of 5 percent to 7 percent CAGR and additional targeted acquisitions.
The company also expects profitability to improve further. Long-term, Symrise aims to achieve an EBITDA margin within the target corridor of 20 percent to 23 percent.
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