In a challenging environment, the Scent & Care segment of Symrise achieved strong organic growth of 10.1 % in the first half of the year. In this continuing tense situation of the raw material markets, especially with the supply of important aromatic substances, the segment sustained the dynamic development from the previous quarter and grew by 13.6 % between April and June. Taking into account negative exchange rate effects and the portfolio effect from the acquisition of Citratus, the segment increased sales by 3.4 % to € 660.1 million (H1 2017: € 638.2 million).
Growth was driven by the Cosmetic Ingredients and Aroma Molecules divisions. Each posted organic double-digit sales growth rates. The Fragrance business also developed positively and achieved a good single-digit growth rate.
The second quarter was also marked by failure to deliver raw materials of some suppliers and an overall rise in price level. The division again benefited from its comprehensive backward integration in fragrances – recently strengthened by the acquisition of Pinova in 2016 – and its mostly own broad raw material base. To compensate for the increased raw material costs, the company is in close dialogue with its customers to actively implement price increases.
Also in view of significantly higher raw material prices, which led to cost increases, the segment’s EBITDA of € 127.9 million was on prior-year level (H1 2017: € 128.4 million). Crucial when comparing with the reference period is that it included a one-off gain of € 4.7 million from the purchase price adjustment related to the sale of the Pinova industrial activities. The EBITDA margin of the segment was 19.4 % (H1 2017: 20.1 %). Adjusted for the one-off effect, the EBITDA margin for the same period in the prior year was 19.4 %.
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