Symrise (SY1) Q2 2024 earnings summary

Executive summary

• Achieved 11.5% organic sales growth in H1 2024, with reported sales up 6.3% to €2.6 billion, outperforming the market despite high inflation and geopolitical uncertainties.

• EBITDA increased 11.5% to €530 million, with margin rising to 20.7%, up 1 percentage point year-over-year.

• Net income grew 27.7% year-over-year to €239 million; EPS rose to €1.71 from €1.34, reflecting improved profitability and absence of prior year one-time effects.

• Efficiency program delivered €25 million in cost savings by June, with 50% of targeted €50 million achieved.

• Both Taste, Nutrition & Health and Scent & Care segments contributed to growth across all regions.

Financial highlights

• Gross profit increased 13.5% to €998 million, with gross margin up 2.5 percentage points to 38.9%.

• Business free cash flow more than doubled to €226 million, representing 8.8% of sales.

• EBIT rose 10.4% to €366 million; EBIT margin improved to 14.3%.

• R&D expenses increased 3.2% to €135 million, supporting innovation initiatives.

• Net debt/EBITDA at 2.3x (excluding pensions/leasing), 2.9x (including pensions/leasing), with equity ratio at 48.2%.

Outlook and guidance

• Confirmed 2024 organic growth guidance of 5%-7%, with EBITDA margin target around 20%.

• Business free cash flow guidance at 12% of sales for 2024, with a midterm target of 14%.

• Long-term sales target of €7.5–€8 billion by 2028, with annual organic growth of 5%-7% and EBITDA margin in the 20%-23% corridor.

• Efficiency program execution remains a priority to drive higher profitability.