Symrise Keeps Targets as Consumer Confidence Growth ForecastSheenagh Matthews
Symrise AG, the fourth-biggest maker of flavors and fragrances, forecast a “favorable” development in consumer confidence in 2013 as it reiterated plans to grow faster than competitors on average. The stock rose the most in almost a year.
Sales gains in 2013 will exceed the 2 percent to 3 percent increase expected for the global fragrance and flavor market, Holzminden, Germany-based Symrise said today in a statement. First-quarter earnings before interest, taxes, depreciation and amortization rose 6 percent from a year earlier to 92.8 million euros ($121.7 million), in line with analyst estimates.
The results contrast with figures at Swiss rival Givaudan SA, which reported first-quarter sales last month that missed estimates on weaker demand for fine fragrances as Europe’s debt crisis weighs on demand for luxury items. Symrise Chief Executive Officer Heinz-Juergen Bertram reiterated today that he plans to boost revenue 5 percent to 7 percent a year until the end of the decade, adding about 1 billion euros to annual sales.
“Even though some European countries continue to be impacted by the euro crisis, Symrise expects to see an overall positive economic climate in its sales markets,” the company said today.
Symrise rose as much as 5.8 percent to 34.99 euros, the biggest intraday jump since May 23, 2012, and was trading up 5.7 percent at 12:22 p.m. in Frankfurt. The stock is trading this year at the highest since Symrise’s December 2006 initial public offering, boosting the company’s market value to 4.13 billion euros.
First-quarter sales increased 5.8 percent to 457.6 million euros, matching estimates. Net income gained 7 percent to 46 million euros, beating the 44.7 million-euro average estimate.
Symrise, the maker of perfume ingredients for Dior’s Fahrenheit, plans to boost Ebitda to more than 500 million euros by 2020, with margins at 19 percent to 22 percent of revenue, the company said, repeating a target laid out in March.