Symrise’s half-year 6.8% sales growth boosted by recent acquisitions of fine fragrance suppliers

02 Aug 2023 --- Symrise reports growth in its financial overview for the first half of this year amid a tense global economic environment that led to significant price hikes across the board. The company has achieved an overall sales of €2.4 billion (US$2.7 billion).

In the supplier’s fine fragrances segment, portfolio effects from the acquisitions of Groupe Néroli and Romani contributed around €15 million (US$16.5 million) to sales.

“Symrise has a proven and stable business model with comparatively low-risk content. The group is broadly diversified and robustly positioned,” says Dr. Heinz-Jürgen Bertram, CEO at Symrise. 

However, he flags that persistently high inflation has resulted in “strict cost management and price increases.” Nevertheless, he adds that the fragrance and cosmetic ingredients company is starting the second half of the year “with confidence.”

Symrise recently inaugurated a new creation hub in Shanghai for Fine Fragrances and a center of expertise in Paris for Cosmetic Ingredients. “These measures reflect our ambition to enhance our competitiveness in a sustainable way,” comments Dr. Bertram.

Scent & Care segment performance
The supplier’s Scent & Care division achieved organic sales growth of 2.4% in the first half of 2023.

Taking into account portfolio and exchange rate effects, sales in the first half of 2023 amounted to €886 million / US$973 million in the reporting currency, 2.7% higher than the same period of the previous year. 

The Symrise Scent & Care division achieved organic sales growth of 2.4% in the first half of 2023.Symrise’s Fragrance division increased its sales organically by a single-digit percentage in the first half of 2023. Meanwhile, the company’s Fine Fragrances business unit continued its “dynamic development,” achieving double-digit percentage organic growth following a “strong previous year.”

The growth rates were particularly pronounced in the EAME and Latin America regions. The business unit Consumer Fragrance achieved single-digit percentage growth.

Like in Fine Fragrances, the EAME and Latin America regions recorded strong growth. Sales in the Oral Care business unit in the first half of the year matched the previous year’s level.

In the first half of 2023, sales growth in the Aroma Molecules division was impacted especially by a difficult market environment and Symrise’s production shut down at Colonel Island. 

Strongest growth in skin protection solutions
Moreover, demand for fragrance ingredients and menthol was adversely affected by customer destocking, outlines the supplier. Overall, volumes were significantly down compared to previous year.

Sales in Symrise’s Cosmetic Ingredients division continued to develop well in the first six months of the current year, with organic growth again in the double-digit percentage range. The EAME, Asia/Pacific and Latin America regions increased sales significantly. 

Notably, Sun Protection products and Micro Protection categories recorded the strongest growth.

In sun care ingredient launches this year, Symrise unveiled SymEffect UV. The synergistic mixture of renewable ingredients enhances the effectiveness of organic and mineral UV filters. It is designed to help cosmetics manufacturers achieve higher protection at the same UV filters concentration in a product. 

Other half-year business highlights
Looking at other key Symrise developments in the first half of this year, Symrise Cosmetic Ingredients partnered with Synergio in a minority interest acquisition to accelerate the development of natural antimicrobial solutions.

In January, Symrise invested in US incubator Ignite Venture Studio with participation in a series A funding round as part of a move to expand its beauty, health, wellness and personal care portfolio. The move aligns with the company’s targets to strengthen competencies in beauty and health market consumer trends.

Among recent beauty solution launches, Symrise debuted a pomegranate-based botanical ingredient from upcycled fruit waste last April.

Edited by Benjamin Ferrer