Symrise Pledges to Stay in Top Profit League on Fragrance Demand

Symrise AG (SY1), the fourth-largest maker of flavors and fragrances, pledged to remain one of the most profitable companies in its industry amid higher demand for aroma molecules and fragrances.

Earnings before interest, taxes, depreciation and amortization, will be about 20 percent of sales in 2013 and will stay in the range of 19 percent to 22 percent in coming years, the Holzminden, Germany-based company said today in a statement. That margin was 21.2 percent in the third quarter.

Bigger rival Givaudan SA (GIVN) last month reported a drop in quarterly sales amid emerging-market currency weakness. Symrise Chief Executive Officer Heinz-Juergen Bertram has grown the company with a new menthol factory and with the acquisition of U.S. air freshener scent maker Belmay.

“The group expects sustained robust demand and positive market dynamics for all regions and in both divisions,” the company said. “We successfully left behind slight economic slowdowns, which occurred in certain markets. Along with high demand, our investments paid off.”

Average annual sales growth will be 5 percent to 7 percent until 2020, Symrise said.

Earnings before interest and taxes gained 10 percent to 76.4 million euros ($103 million) in the third quarter. Sales rose 4.1 percent to 466.5 million euros.

Symrise shares have gained 15 percent this year, boosting the company’s market value to 3.68 billion euros.

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

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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