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Symrise Looks for Acquisitions to Help Beat Market Growth

Symrise AG (SY1), the German fragrance maker that supplies ingredients for Britney Spears perfume, is pursuing acquisitions to help beat market growth and expects sales on 2011 to increase as much as 5 percent.

Earnings before interest, taxes, depreciation and amortization will stay at more than 20 percent of revenue this year, the Holzminden-based company said today in its annual report. Sales in 2010 rose 15 percent to 1.57 billion euros ($2.18 billion), beating a growth target of 8 percent, as Ebitda jumped 35 percent to 245.6 million euros, Symrise said.

Symrise said today it may “briefly” depart from debt goals to finance purchases. Chief Executive Officer Heinz- Juergen Bertram, who has had the top job since 2009, said today he plans to win market share.

“Acquisitions fit their strategy,” said Yasmin Moschitz, an analyst at Commerzbank AG (CBK), who has an “add” recommendation on Symrise stock. “They proved that they clearly beat goals. With the new management, they’re giving conservative guidance.”

Symrise gained as much as 4.4 percent to 20.15 euros, the biggest intraday jump since Jan. 12, and was up 4.1 percent as of 9:53 a.m. in Frankfurt trading. That pared the stock’s decline this year to 2.2 percent for a market value of 2.4 billion euros.

“We are actively looking at acquisitions in 2011,” the company said. “We are confident of growing faster than the market and continuing our profitable growth path in 2011 and 2012.”

Net income last year gained 58 percent to 133.5 million euros. Analysts had estimated profit of 139.6 million euros. The company had 112.2 million euros in cash at the end of 2010, an increase of 40 percent from a year earlier.

To contact the reporter on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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