THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

Regions
EAME
In EAME, the largest region, Scent & Care’s currency-adjusted
sales were down slightly on the previous year (-2%), which is attributable
primarily to weak demand in the luxury segments Fine
Fragrances and Personal Care. The solid sales performance in the
Household, Life Essentials and UV Filters business units could not
completely offset the sales drop.
North America
With sales of 12% at local currency, North America is our fastestgrowing
region. The main sales driver was the Household application
area, followed by Cosmetic Ingredients and UV Filters. Sales
of Fine Fragrances and Mint fell in 2008. This was due in part to
overstocking by a few customers at the end of 2007/beginning of
2008, but primarily to general consumer restraint in the US
Our acquisition of the US companies Manheimer Fragrances and
Intercontinental Fragrances makes us one of the leading fragrance
manufacturers on the US air care market. We are planning to open
a global air care center in 2009 in the US.
SALES AND EBITA
FLAVOR & NUTRITION
€ million
582.0
111.7*
603.2
117.6
648.1
111.8
06 07 08
* Adjusted for integration and
restructing expenses
Sales
EBITA
Asia/Pacific
Asia/Pacific continued to post solid sales growth of 6% in local currency.
In the emerging markets, our growth depends very much on
consumers’ disposable income. Demand for products containing
our recipes grows with increasing disposable income. In Asia/Pacific,
the Aroma Molecules and Life Essentials applications performed
particularly well, recording double-digit growth rates. The
opening in June 2008 of our new Creative Center in Shanghai is a further
sign of our efforts to constantly expand our leading position in
the burgeoning Asian market. The new site provides an inspiring and
modern work atmosphere promoting cooperation between creative,
innovation, sales, and marketing teams and contributing to a better
understanding of consumers’ wishes in this important part of the
world. The Creative Center also acts as the new regional headquarters
for northern Asia. It will serve China and Taiwan as well as Japan
and Korea
South America
Sales performance in South America was mixed. While Life
Essentials and Personal Care developed positively, Household and
Mint were confronted with a drop in demand. Overall, the region
recorded slight currency-adjusted growth of 1% compared to the
previous year.
Earnings Situation
Scent & Care reported EBITA of € 109.8 million for 2008, which
was 4.0% below the previous year’s level at both actual rates and
at local currency. The result was negatively impacted by various
factors in the course of 2008. Despite the general economic downturn,
raw materials prices rose steadily up to the end of November
2008. The positive effects of our price increases became evident
only late in the year and could not offset the significantly higher
sales costs. Consequently, the EBITA margin also decreased to
16.4%, 0.7 percentage points lower than in 2007.
Flavor & Nutrition
Good Sales Performance
In fiscal 2008, Flavor & Nutrition including Chr. Hansen Flavors
achieved sales of € 648.1 million. Adjusted for currency effects, this
represented a 10.4% increase over the previous year (7.4% at actual
rates). Excluding Chr. Hansen Flavors, sales rose by 2.4% at actual
rates to € 617.5 million (5.0% at local currency). After the acquisition
in April, Chr. Hansen Flavors generated sales of € 30.6 million. All regions
and application areas boosted their sales compared to 2007.
“AND” Products Offering Added Value
Sales achieved with “AND” products increased only slightly, by
1% at local currency. This meant that sales growth of “AND” prod-
74 Annual Report 2008 Symrise AG