Flavor manufacturer - Symrise lowers profitability target
The manufacturer of fragrances and flavors Symrise is feeling the effects of a delayed reduction in inventories and negative currency effects. Due to lower raw material prices, inventories also had to be devalued, the DAX-listed company announced on Thursday evening. Symrise is now taking a more cautious view of profit margins in the current year. The Symrise share price collapsed on Friday. Nevertheless, the company's organic sales growth is better than planned. The management has raised its target for the year.
The Symrise management is now somewhat less optimistic with regard to profitability: the adjusted earnings margin before interest, taxes, depreciation and amortization (EBITDA) and before special items is now expected to reach 19 to 19.5 percent in 2023, instead of around 20 percent as previously planned. Excluding exchange rate effects and the purchase and sale of parts of the company, turnover is expected to grow by more than 7% in the current year. The previous target was 5 to 7 percent. This would result in an annual turnover of around 4.7 billion euros, it added. In 2022 it was 4.6 billion.
Symrise had confirmed its medium-term targets due to good demand at Group level. Accordingly, annual organic growth of 5 to 7 percent on average is to be achieved by 2028. Profitability (EBITDA margin) is expected to be in the range of 20 to 23 percent.
Press release
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Source: www.stern.de
