Flavor & Nutrition
Flavor & Nutrition Division
looks back on a successful year 2007 with net sales of € 603.2 million,
growing by 5.8% on a local currency basis compared to last year. At
actual rates, the sales growth increased by 3.6%.
Sales in EAME increased by 6.0% on a local currency basis (5.4% at actual rates). In North America, the Flavor & Nutrition division suffered as a result of certain accounts withdrawing products from the market, especially in Sweet. As a result, sales in the region were 3.9% on a local currency basis (11.9% at actual rates) less than last year. Slower product launches of the leading food and beverage companies were experienced in 2007, but we are anticipating a recovery in the business in 2008.
We posted a growth on a local currency basis of 10.6% in Asia (8.0% at actual rates), driven in particular by strong sales in the emerging economies of China and Indonesia. Increased sales to large regional customers were the significant factor in this increase.
Sales in South America continued to increase, as reflected in the 14.2% sales growth on a local currency basis (12.3% at current exchange rates). Here too, sales to large customers were the main driving factor of the sales growth.
Innovations from the “taste for life®” program such as the second generation of the SymLife Sweet and SymLife Salt technologies have decisively supported the positive performance of the Sweet and Savory application area. Both areas posted the strongest sales growth in the Middle East and South America.
The strategic enlargement of product competences in the application areas Sweet and Savory gained from the acquisitions made in 2007 supports the global Symrise “taste for life®” positioning well, i.e. focusing the growing demand on health-conscious nutrition.
In the Beverages segment, a continuing trend to award beer mix drinks was recorded and could be further expanded to new markets in western Europe and the emerging markets. New business, especially in Asia Pacific, was generated in the category of nonalcoholic soft drinks with new and existing customers. In western Europe, new products were launched with existing customers on the back of “AND” concepts. We posted a growth on a local currency basis of 7.0% (5.4% at actual rates).
Sales growth of defined “AND” products increased by 6.8% (8.3% at actual rates).
To further strengthen the core competencies in the Citrus area, a global Citrus Center was opened in Brazil. Being close to the world’s largest growing area of citrus fruits, Brazil and Argentina, as well as special in-house extraction technologies assures first class raw materials and enables the development of new and authentic aroma profiles.
The powerful implementation of our key account strategy resulted in new core listings in the application areas Savory and Sweet, facilitated significantly by our focused acquisition strategy.
In the Flavor & Nutrition business division, EBITDA rose from € 130.3 million in 2006 to € 137.4 million in 2007. Increased operating profit is due mainly to the improved sales performance, generating an EBITDA margin of 22.8% (2006: 22.4%).
