THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise
THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise
THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise
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RECONCILIATION<br />
€ million<br />
EBIT<br />
EBIT margin in %<br />
EBITA<br />
EBITA margin in %<br />
EBITDA<br />
EBITDA margin in %<br />
Q4/2007<br />
34.1<br />
12.0<br />
43.6<br />
15.3<br />
52.5<br />
18.4<br />
EBIT/EBITA/EBITDA<br />
EBITA was down 5% to € 222 million in fiscal 2008, narrowing the<br />
EBITA margin by one percentage point to 16.8%. This was due mainly<br />
to the greater increase in the cost of sales than in sales. Raw materials<br />
prices and energy costs in 2008 climbed by around 5%. Small<br />
price increases were pushed through from November, but they<br />
could not offset the negative trend in raw materials costs. The EBITA<br />
margin was also negatively impacted by acquisitions, which contributed<br />
to sales growth but not profitability.<br />
Q4 EBIT/EBITA/EBITDA<br />
Fourth-quarter margins are traditionally the lowest of the four quarters<br />
in the year, since we do not benefit from a full ‘normal’ month<br />
of sales in December. This year, margins suffered further as a result<br />
of lower sales due to customers delaying orders through November<br />
and December. This led not only to a lower absolute gross<br />
margin; the gross margin percentage also suffered due to significant<br />
under-recovery of fixed manufacturing costs as factory<br />
throughput decreased and we attempted to minimize our own<br />
working capital exposure from finished goods at year end.<br />
Higher raw materials costs had a negative impact on our margins.<br />
As mentioned, we only managed to push through price increases<br />
with our customers as from November 2008. With lower Fine<br />
Fragrance and Sweet sales and stronger Savory and UV Filter sales,<br />
the product mix was adverse in Q4 2008.<br />
The EBIT margin was further impacted by the recipe amortization<br />
charge for the new acquisitions, which, in the case of Chr. Hansen<br />
Flavors, resulted in a catch-up from April once the purchase price<br />
allocation was completed.<br />
Annual Report 2008 <strong>Symrise</strong> AG 71<br />
Q4/2008<br />
28.5<br />
9.2<br />
39.5<br />
12.7<br />
50.9<br />
16.4<br />
AR %<br />
Change<br />
LC %<br />
-17 -22<br />
-9<br />
-3<br />
-14<br />
-7<br />
2007<br />
195.7<br />
15.4<br />
232.3<br />
18.2<br />
272.1<br />
21.3<br />
2008<br />
187.0<br />
14.2<br />
221.6<br />
16.8<br />
262.5<br />
19.9<br />
AR %<br />
Change<br />
LC %<br />
-4 -5<br />
-5<br />
-4<br />
-5<br />
-4<br />
Group Management<br />
Report
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