THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

Financial Result
The financial result for 2008 was € 52 million, € 4 million lower
than the previous year’s € 56 million. We were able significantly to
reduce the volatility of our financing costs in the profit and loss
statement through the use of hedge accounting and interest rate
swaps.
Excluding differences in exchange rates for loans and alterations
in the valuation of swaps for exchange rate effects, the net interest
charge was € 41.2 million. That is an increase of € 2 million
over the previous year. Higher net debt and an increase in interest
on pensions are the main reasons for the heavier interest charge.
Taxes
In 2008, income tax of € 44.4 million (2007: € 42.8 million) was
reported in the profit and loss statement. This amounts to a tax
rate of 33%.
The 33% tax rate is lower than the 37% underlying tax rate in 2007
as a result of a reduction in German corporate taxes, which took
effect on January 1, 2008. The 2007 P&L tax rate benefited from
a release of deferred tax provisions associated with capitalized
SALES UND EBITA
SCENT & CARE
€ million
647.4
92.1*
671.3
114.7
671.8
109.8
06 07 08
* Adjusted for integration and
restructing expenses
Sales
EBITA
recipes, following the announcement in 2007 of the lower German
corporate tax rate.
This tax rate also includes the formation of certain provisions to reflect
the risks of additional tax assessments arising from various
current and pending tax audits in different jurisdictions.
As a result of tax losses carried forward, the tax cash payments in
2008 of € 29.8 million (2007: € 27.3 million) were almost € 15 million
below the tax charge shown in the income statement
Net Profit and Earnings per Share
Net income for 2008 decreased by 7% to € 90.4 million, down from
€ 97.4 million in 2007. Accordingly, earnings per share for 2008
fell to € 0.76 (2007: € 0.82).
Underlying net income increased by € 0.1 million from € 120.7
million to € 120.8 million. Adjusted earnings are earnings before
taxes not allowing for depreciation on recipes, foreign exchange
rate effects on loans, and movements in fair value evaluation of
derivatives (all taking account of the applicable tax rate).
Underlying earnings per share in 2008 remained stable at € 1.02.
Dividend
At the Shareholders’ Meeting on May 11, 2009, the Executive
Board of Symrise AG will propose payment of a dividend of € 0.50
per share for fiscal 2008, as in the previous year. This is consistent
with our dividend policy of paying out around 50% of adjusted profits.
The dividend provides shareholders an attractive return.
5. PERFORMANCE OF THE BUSINESS DIVISIONS
Scent & Care
Scent & Care Growing with the Market
Scent & Care turned in a mixed sales performance in fiscal 2008.
While the Life Essentials, Aroma Molecules and Mint areas developed
according to plan, the “luxury segments” Fine Fragrances
and Personal Care had to contend with demand problems arising
from the global economic situation. In 2008, Scent & Care notched
up sales of € 671.8 million. Including the acquisitions of Intercontinental
Fragrances and Manheimer Fragrances, the division’s
sales matched the previous year’s level. On a local currency basis,
Scent & Care recorded sales growth of 3.0%. Excluding Intercontinental
Fragrances and Manheimer Fragrances, sales amounted to
€ 666.8 million, corresponding to an increase of 2.2% at local
currency (- 0.7% at actual rates).
72 Annual Report 2008 Symrise AG