Symrise Margin Exceeds Estimates as Diana Is Integrated

Symrise AG, the fourth-largest maker of flavors and fragrances, reported third-quarter profitability that beat analyst predictions after integrating French acquisition Diana Ingredients.

Earnings before interest, taxes, depreciation and amortization adjusted for acquisition-related costs amounted to 22.9 percent of sales, the Holzminden, Germany-based company said today in a statement. Analysts had expected a margin of 21.1 percent, according to a Bloomberg survey.

Chief Executive Officer Heinz-Juergen Bertram is narrowing the gap with larger competitors Givaudan SA and International Flavors & Fragrances Inc. with the 1.3 billion-euro ($1.62 billion) purchase of Diana in mid-2014 that added pet-food ingredients and greater access to natural raw materials. A focus on high-margin business, capacity utilization and cost restraint contributed to profitability gains, Symrise said today.

The company posted an “amazingly strong margin,” Thomas Maul, an analyst at DZ Bank, said in a note to investors.

Symrise jumped as much as 4.9 percent and was up 3.5 percent at 46.78 euros as of 9:38 a.m. in Frankfurt. The stock, which has been trading this month at the highest price since the company’s late-2006 initial public offering, has gained 40 percent this year, valuing Symrise at 6.07 billion euros.

Third-quarter normalized Ebitda surged 36 percent to 134.8 million euros, beating the 117.9 million-euro average analyst estimate. Sales rose 26 percent to 588.2 million euros, also exceeding predictions.

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