Symrise (SY1) Q1 2025 TU earnings summary

Executive summary

• Achieved 4.2% organic sales growth in Q1 2025, with reported sales up 2.0% to €1,317 million, driven by higher volumes, a diversified, innovation-led portfolio, and strong performance in EAME and Asia-Pacific regions.

• CEO emphasized profitable growth despite macroeconomic uncertainty, highlighting the ONE Symrise strategy and continued investments in innovation.

• Scent & Care segment posted 1.7% organic sales growth, led by Fragrance and Aroma Molecules, with robust momentum in Latin America, EAME, and APAC.

• Pet Food division saw moderate sales increase, with strong palatability growth offset by softer pet nutrition performance.

• Ongoing expansion in high-growth regions and continued innovation underpin long-term growth strategy.

Financial highlights

• Organic sales grew 4.2% year-over-year; reported sales up 2.0% to €1,317 million, with negative currency effects of €19 million and a -€10 million portfolio effect from the UK beverage trading business divestment.

• Taste, Nutrition & Health segment sales rose to €799 million (+5.9% organic growth); Scent & Care segment sales reached €518 million (+1.7% organic growth).

• Fragrance and Aroma Molecules divisions achieved high single-digit organic growth.

• Group pricing increased by 1.4% in Q1, reflecting real pricing rather than inflationary effects.

• Terpene ingredient business generated sales substantially above $100 million, but with a dilutive margin.

Outlook and guidance

• Reaffirmed 2025 guidance: 5%-7% organic growth, ~21% EBITDA margin, and ~14% business free cash flow.

• 2028 midterm targets: 5%-7% organic growth, 21%-23% EBITDA margin, and >14% business free cash flow.

• Expect to grow above the anticipated annual market growth rate of 3%-4%.

• Confident in achieving full-year guidance, with strong underlying market trends and no negative signals.