Financials update: Symrise reports strong H1 as Novozymes disappoints

05-Aug-2015 - Last updated on 06-Aug-2015 at 13:20 GMT

German fragrance and flavour company Symrise reported a 38% jump in first half profits, while shares in Novozymes fell as much as 10% after the Danish enzyme giant lowered certain full-year expectations.

Symrise AG reported strong froth and ‘excellent profitability’ in the second quarter of 2015, as group sales rose by 41 % to €1.3 billion with an EBITDA margin of 22.6 %. According to the firm, strong growth in all regions was aided by the now fully integrated activities of its 2014 acquisition Diana Group – which contributed sales of €268 million.

The flavour and fragrance firm said sales in its Scent & Care segment rose by 11 % to € 546.5 million while its Flavour & Nutrition segment increased sales by 75% to €784.3 million – where the firm signed ‘numerous new orders’ and benefitted from ‘strong demand’ for natural flavours.

“Despite the economic and political uncertainties in some markets, we are looking ahead to the second half with confidence. We have a broadly diversified portfolio, a strong market presence and see clear growth opportunities for both segments,” said Dr. Heinz-Jürgen Bertram, CEO of Symrise.

Excluding the contributions from Diana, Symrise increased its sales by 13 % (local currency: 6 %), said the company.

Novozymes H1 disappoints

Shares in the world's largest industrial enzyme maker, Novozymes, fell by as much as 10% on the back of disappointing second-quarter results that saw it lower expectations for organic sales and sales growth.

“First-half earnings have been very satisfactory, but we need to increase growth,” said Peder Holk Nielsen, President and CEO of Novozymes.

He noted that volatile markets in non-food applications such as bioenergy and household care have created headwinds for the firm and its customers.

“Good developments in other areas such as Agriculture & Feed and Food & Beverages balance things out but don’t make up for the headwinds,” said Nielsen, who confirmed that sales growth expectations for the full year will be reduced as a result.

The firm reported that sales to the food and drink industries increased by 5% organically (15% in local currency) compared with the first half of 2014, on the back of increased sales to the baking industry and demand for the production of healthy foods. Sales to the starch industry also increased moderately, it said.

“We maintain our full-year profit outlook, as we see improved productivity and operational efficiencies leading to a higher EBIT margin," said Nielsen.