Symrise: overall decline, pet food segment records growth

Symrise’s taste, nutrition and health segment – including its pet food business – grew 11.4% in the first half of 2023. This is up 9.3% from the first 6 months of 2022.

This segment, which was driven by pet food sales, saw a 6.4% increase in earnings before interest, taxes, depreciation and amortization (EBITDA) from €314.7 million ($347.4M) to €334.9 million ($366.5M) this year.

According to the Holzminden-based company, the pet food portfolio was “particularly dynamic” in Poland, France, the US, Mexico and China.

Symrise partly attributed its growth in China to its joint venture with poultry processor Sunner that started earlier this year. “Symrise has laid the foundation for further accelerated expansion of the business,” the company said.

Southeast Asian markets also performed well from January to June 2023.

Swedencare and aquafeed

Symrise’s relationship with Swedencare is allowing the German company to “reinforce their leadership” position in the pet care and pet food markets. Symrise currently owns a 30% stake in the Malmö-based pet health company.

Aquafeed was another notable division for the company, where all regions achieved double-digit percentage growth. Significant growth momentum came from Germany, China, Indonesia and Thailand.

Last month, Symrise Pet Food also announced it would be transforming its branch of nutrition ingredients into a new line called Nuvin. The recent launch will replace their original brand Nutrios.

Under the nutrition brand evolution, the company will expand and advance sustainability for the complete offering of egg, chicken, hydrolyzed proteins and health solutions. The company hopes the move will “strategically strengthen” its portfolio.

Global sales

The company hit sales worth €2.4 billion ($2.6B) in H1 2023, 6.8% more than the same period in 2022.

However, the company recorded an EBITDA of €446 million ($489.5M) across all of its business, a decrease of 8.1%. Net income in the period also dropped by 18%, hitting €187.5 million ($205.7M). In the first half of 2022, it exceeded just over €228.8 million ($250M).

Dr. Heinz-Jürgen Bertram, CEO of Symrise, believes the company has proven to have a “stable business model with comparatively low-risk content.” Bertram explains that Symrise has been battling inflation, which has resulted in cost increases, noting that the company is entering “the second half of the year with confidence.”

Symrise confirmed its growth and profitability targets as it expects to grow faster than the relevant market. The company is targeting organic sales growth of between 5 and 7% in 2023.