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 rose 11.5% to €530 million, with margin up to 20.7% from 19.7% (adjusted) in H1 2023.

• Net income increased by 27.7% to €239 million; EPS up to €1.71 from €1.34.

• Efficiency program delivered 50% of targeted €50 million savings; business free cash flow more than doubled to €226 million.

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

Financial highlights

• Gross profit rose 13.5% to €998 million; gross margin improved by 2.5 percentage points to 38.9%.

• EBIT grew 10.4% to €366 million; EBIT margin at 14.3%, up 0.6 percentage points.

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

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

• FX headwinds reduced sales by €110 million; divestiture of UK beverage business and Aqua Feed business impacted sales.

Outlook and guidance

• Confirmed 2024 organic growth guidance of 5%-7%, excluding hyperinflation-related pricing.

• EBITDA margin target for 2024 remains around 20%.

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

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

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