Symrise (SY1) Q3 2024 TU earnings summary

Executive summary

• Group sales grew 11.1% organically to €3.8 billion for the first nine months of 2024, with Q3 organic growth at 10.2%.

• Both Taste, Nutrition & Health and Scent & Care segments achieved double-digit organic growth, contributing to strong results despite global economic challenges and high inflation.

• Robust performance is expected to continue, with the company elevating its full-year organic sales growth guidance to around 7%, excluding hyperinflation effects.

Financial highlights

• Organic growth of 11.1% in the first nine months was mainly volume-driven, with a 2.3% positive impact from hyperinflation-related pricing.

• Total revenue increased by 5.9% to €3,824 million compared to €3,610 million in 9M 2023, after portfolio and FX effects.

• Negative exchange rate effects of 4.0% partially offset organic growth.

• Taste, Nutrition & Health segment revenue reached €2,349 million; Scent & Care segment revenue was €1,475 million.

• Taste, Nutrition & Health segment delivered 10.4% organic growth YTD, accelerating to 11.3% in Q3.

Outlook and guidance

• Full-year organic sales growth is specified at around 7%, excluding hyperinflation effects.

• Hyperinflation-related effects, especially from Argentina, will create a significant headwind in Q4, reducing the full-year hyperinflation contribution to about 1%.

• Q4 is expected to be the softest quarter, with order flow in December being unpredictable.

• Long-term organic growth expectation remains 5% to 7% CAGR, with EBITDA margin targeted at 20% to 23%.

• Management expects pricing in pet nutrition to stabilize in 2025, with volume growth continuing.