Symrise Reports First Half 2025 Results

 Press release

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Holzminden, 30 July 2025                

• Organic growth of 3.1%
• EBITDA margin of 21.7%, an increase of 100 basis points year-on-year
• Identified recurring cost savings through efficiency improvements of €40m in 2025, €20m realized in H1 as part of the ONE SYM Transformation
• Seeking strategic alternatives for terpene ingredients business
• Appointed Michael Friede as Symrise Executive Board Member and President of the Scent & Care segment
• Updating guidance to reflect the current global demand environment and execution of ONE Symrise Strategy:
  • Moderating 2025 organic growth to 3-5% from 5-7%
  • Increasing 2025 EBITDA margin to ~21.5% from ~21% 

Symrise AG, a leading global supplier of fragrances and flavors, cosmetic ingredients as well as functional ingredients, continued to execute its ONE SYM Transformation, including advancing its profitable growth strategy in the first half of 2025. Despite the continued challenging global environment, Symrise delivered above-market organic sales growth and significantly improved its profitability through a focus on high-margin products and strong cost management.

For H1 2025, Symrise achieved organic sales growth of 3.1%. Taking into account portfolio and exchange rate effects, amounting to €91 million, reported revenue totalled €2,554 million. A healthy pipeline of sales opportunities and project vitality with selected customers in key markets offset tough year-on-year comparables.

Earnings before interest, taxes, depreciation and amortization of property, plant and equipment and intangible assets (EBITDA) amounted to €554 million, a 4.5% increase versus the prior year of €530 million. EBITDA margin increased to 21.7%, up 100 basis points versus the prior year of 20.7%, mainly attributable to Symrise ’s focus on profitable sales and efficiency initiatives.

Jean-Yves Parisot, CEO of Symrise AG, commented, “Over the past year, we have successfully laid the groundwork of our multi-year ONE SYM Transformation and are now firmly entering the next phase of our journey. Building on the Design & Implementation phase, our focus is now on Activation to drive operational excellence, profitable growth, and shareholder value. While our Transformation is starting to gain momentum, as evidenced by our strong profitability performance, we are observing a shift in global market demand, with heightened consumer caution across certain sectors. Taking this into consideration, we feel it is prudent to moderate our organic sales guidance to a range of 3-5% from our previous outlook of 5-7%. At the same time, we continue to ramp our self-help initiatives and are increasing our EBITDA margin target to approximately 21.5% for 2025 from our previous outlook of around 21%. In addition, we are introducing a target for recurring cost savings through efficiency improvements of €40m in 2025, of which we have already achieved €20m in H1. In a dynamic demand environment, we are leveraging our strengths of differentiation and value-added while controlling what we can control to deliver on our 2028 financial targets. I want to thank our 13,000 Symrisers around the world for their commitment, excellence, and creativity as we transform Symrise into an even stronger organization and market leader globally.”

H1 2025 Group Financial Performance

Gross profit improved to €1,057 million, up 6.0% year-on-year. Gross margin of 41.4% increased 250 basis points over the same period, driven by a focus on value-added sales.

Earnings before interest, taxes, depreciation and amortization of property, plant and equipment and intangible assets (EBITDA) of €554 million, an increase of 4.5% year-on-year. EBITDA margin reached 21.7%, an increase of 100 basis points, mainly due to profitable sales delivery and efficiency initiatives.

H1 2025 Segment Financial Performance

Taste, Nutrition & Health Segment

The Taste, Nutrition & Health segment achieved organic sales growth of 3.3%. Taking into account portfolio and exchange rate effects, segment revenue was €1,564 million in reported currency, down 0.5% year-on-year (H1 2024: €1,572 million). The effect from the sale of the beverage trading business in the Food & Beverage division in 2024 had a negative impact of €10 million on sales.

• Food & Beverage developed positively with mid-single digit growth. Beverages continued to see strength, achieving double-digit organic growth. Naturals also recorded single-digit percentage growth while Savory products saw increased sales across all regions.

• The Pet Food division maintained flat organic sales despite continued cautious consumer sentiment across key markets.

Segment EBITDA of €364 million, increased 4.7% year-on-year, mainly due to an improved input costs and efficiency gains. EBITDA margin of 23.3%, increased 120 basis points in the same period.

Scent & Care Segment

The Scent & Care segment achieved organic sales growth of 2.9%. Taking into account portfolio and currency effects, segment revenue was €989 million in reported currency, down 0.4% year-on-year (H1 2024: €993 million).

• The Fragrance division achieved strong organic growth across all application areas, resulting in double-digit gains in Fine Fragrances. The Consumer Fragrance applications also achieved solid single-digit percentage growth. Oral Care product solutions continued to show positive momentum with single-digit organic growth.
• The Aroma Molecules delivered single-digit organic growth, largely from strong demand in the USA, India and Mexico.
• The Cosmetic Ingredients division experienced lower sales due to high prior-year comparables in sun protection filters.

Segment EBITDA of €190 million, increased €8 million. EBITDA margin of 19.2%, increased 90 basis points from the same period.

ONE SYM Transformation Update

After designing and implementing the transformation roadmap over the last 12 months, inclusive of conducting a portfolio-wide strategic review, engaging our global workforce, and establishing a transformation office, Symrise is entering the second phase of its journey focused on Activation. In H1 2025, we have made meaningful strides in optimizing our portfolio, leadership impact, and efficiency to drive profitable growth and shareholder value creation. Selected actions include:

• In addition to €50m of cost savings achieved in 2024, inclusive of cost avoidance measures, identified an additional €40 million in cost savings as part of our 2025 efficiency plan.
• Continued to add key talent and strengthen the leadership bench; appointed Michael Friede to the Executive Board and President of Scent & Care and added senior leaders to oversee global procurement, global operations, global quality & regulatory and digital & information.
• Through the strategic review, identified portions of the portfolio that are non-core and that do not align with our focus on high margin and low capital intensity; specifically:
  • Aqua feed business: A specialized business in the valorisation of tilapia, tuna and shrimps’ by-products. Expected annual portfolio effect close to €10m, related to the divesture of the Costa Rica site and closing of the Ecuador site.
  • Terpene ingredients business, part of Aroma Molecules division: Seeking strategic alternatives for the business.
• Recycling a portion of the capital from the cost savings through efficiency improvements to invest in talent, digitization, and operational best practices.

Jean-Yves Parisot, CEO of Symrise AG, commented, “ Symrise has a long heritage of market leadership, born out of our technical expertise, differentiated innovation, long-standing customer relationships, and a passionate, curious culture. We have embarked on this journey to take the best of Symrise and transform into a company that generates durable profitable growth, strong business free cash flow, and compounding returns. We are in the early phases of our multi-year journey and, importantly, are taking bold, decisive action. We are seeing momentum build as we continue to execute against our ONE SYM Transformation and One Symrise Strategy implementation. Amid an increasingly challenging consumer backdrop, our efforts will result in a structurally stronger Symrise and position us well to capture market share and deliver operating leverage as demand strengthens.”

Business Free Cash Flow, Net Debt, and Net Income

Business Free Cash Flow^[1] totalled €226 million. At 8.8% as a percentage of sales, BFCF remained constant compared to the prior year.
Net debt increased by €210 million to €2,046 million compared with the reporting date of December 31, 2024. Including pension and lease liabilities, net debt amounted to €2,535 million, corresponding to a net debt to EBITDA of 2.4x, within the communicated long-term range of 2.0x-2.5x.
Income tax expenses amounted to €98 million, corresponding to a tax rate of 26.7% versus the prior year rate of 25.3%.
Consolidated net income amounted to €268 million, up €29 million from €239 million in the same period of the prior year. Earnings per share reached €1.92 in the first half of 2025, compared with €1.71 in the first half of the previous year (+12.0%).

Full Year 2025 Outlook

Symrise continues to expect to grow faster than the relevant market, which is projected to grow 2-3% in 2025 based on revised estimates globally. Taking into account a more challenging than expected global demand environment and transformation efforts, we are updating our annual guidance as follows:

• Moderating organic growth outlook to 3%-5% versus the prior expectation of 5%-7%.
• Increasing EBITDA margin outlook from ~21% to ~21.5%
• Reiterating Business Free Cash Flow as a percent of sales of ~14%.
• Introducing annual cost savings of €40 million

Symrise also reaffirms 2028 mid-term targets, aiming for an organic growth of 5% to 7% (CAGR), an EBITDA margin in the range of 21% to 23% and Business Free Cash Flow percent of sales of more than 14%.

A copy of this press release, the presentation and financial report can be found in the Investor Relations section of our website at https://www.symrise.com/investors/financial-results/.

About Symrise : Symrise is a global supplier of fragrances and flavors, cosmetic basic and active ingredients as well as functional ingredients. Our customers include perfume, cosmetics, food and beverage manufacturers, the pharmaceutical industry and producers of dietary supplements and pet food. With sales of around €5.0 billion in the 2024 financial year, we are one of the world's leading providers. The Group, headquartered in Holzminden, Germany, has more than 100 branches in Europe, Africa and the Middle East, Asia, the USA and Latin America. Together with our customers, Symrise develops new ideas and marketable concepts for products that have become an indispensable part of everyday life. Economic success and corporate responsibility are inextricably linked. Symrise – always inspiring more...

^[1] Business Free Cash Flow is defined as EBITDA minus capital expenditures (incl. cash effects from leasing) plus/minus changes in working capital