Home News UPDATE: Symrise appears cautiously optimistic for 2010

UPDATE: Symrise appears cautiously optimistic for 2010

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By Heide Oberhauser-Aslan
DOW JONES NEWSWIRES 


FRANKFURT (Dow Jones) – Symrise AG has developed for a robust Business development in 2009 showed cautiously optimistic for the current year. The Flavor and fragrance manufacturers expect further market growth in 2010 and exceed increased the EBITDA margin to at least 20% (previous year 19.5%) to the company announced on Wednesday. "The market environment has changed in brightened the last months, "said Chief Executive Officer Heinz-Juergen Bertram. Continued high commodity prices and a lower consumer confidence, however, remain a challenge. In 2009, the shareholders are to an unchanged over previous year Dividend of EUR 0.50 per share.

During the past fiscal year, the MDAX-listed company with increased Based in Holzminden sales by 3.2% to EUR 1.362 billion, for Dow Jones Newswires on average by analysts polled had revenues of 1.359 billion EUR counted. The net profit fell by 7% to EUR 84.3 million back, have been estimated 89 million euros. EBITDA adjusted for Restructuring charges yet improved by 1% to 265.4 million euros. Symrise was here from improved business performance in the second half and positive effects from the implemented during the year Restructuring benefits, it said. The extraordinary Restructuring expenses in 2009 estimated the company with 19.9 million euros.

2010, the currency sales are expected to at least 3% grow. In the first half of 2010, which was significantly weaker Year on year profit, which in the course of Financial year to be offset, however, announced the group.

Measures to enhance the results will Symrise continue to be followed. These included cost reduction, Price management and portfolio optimization, the company stated. In Last year, Symrise had against the backdrop of the more difficult Market conditions, the business is already leaner and more efficient set. This has contributed significantly to the adjusted EBITDA margin to maintain a high level, explained the company.

Symrise wants to grow in the future primarily organic. Where there would be useful to the company will also make acquisitions or strategic partnerships and reach in 2010 Actively considering acquisition opportunities, it said.

The stock in client companies has been found in Assessment of Symrise management in the second half of 2009 again normalized, after it was reported previously a significant storage reduction. Although the cyclical PROSPECTS for 2010 had improved, because Symrise still expects existing Uncertainties with only a modest market growth of 2% to 3% for the Sub-markets fragrances and flavors. 2009, the market had a total of stagnating.

Positively, with the information that the operating cash flow in 2009 developed. Thanks to effective management of working capital of Operational Casch flow increased to EUR 225.7 million, after EUR 153.1 million the year before. The significant inflow of funds has Symrise to include Reduction in the use of financial liabilities, it said. The Net debt had fallen to 773.4 million EUR, EUR 833.6 million in accordance Previous year.

The debt indicators are to be further improved. The Net debt (including Pensionsrückstellugen) to EBITDA is expected in the medium term are 2.0 to 2.5. The end of 2010 will Symrise because of their strong cash flows, the upper end of the range . reach A short-term removal of this bandwidth was in However, possible acquisitions, it said.

LBBW analyst said in an initial assessment of an adjusted slightly better than expected EBITDA in the fourth quarter. Net earnings and earnings per share missed analysts’ estimates as well as the unadjusted EBITDA. Would be expected, the Companies pay a dividend at last year’s level (EUR 0.50) to pay. In the current Symrise expect better years, despite the difficult market environment Conditions which, inter alia, from high commodity prices and the low Consumer confidence would result. However, the company wanted fast 2010 growth than the market and increase the EBITDA margin to at least 20%.

   

Website: www.symrise.com

- By Heide Oberhauser-Aslan, Dow Jones Newswires;
+49 (0) 69 29 725 113, heide.oberhauser @ dowjones.com

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(END) Dow Jones Newswires

March 03, 2010 04:39 ET (09:39 GMT)

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