Results of Operations
Sales Growth Continues at a Strong Pace
On a local currency basis, Symrise’s revenue in 2007 was 6.2% higher than the year before. At actual exchange rates, the company’s revenue increased by 3.7%, from € 1,229.4 million to € 1,274.5 million.
On a local currency basis, Symrise increased its sales in the EAME (Europe, Africa, and the Middle East) region by 4.9%, with revenue growth particularly strong in Africa and the Middle East. On a local currency basis, North American sales increased by 5.4%, although, at actual rates, the performance was 3.1% lower than last year, being hit by the weaker dollar.
In Asia Pacific (+9.7% on a local currency basis, +7.1% at actual exchange rates) and South America (+8.4% on a local currency basis, +7.8% at actual exchange rates), Symrise achieved high growth rates as a result of focusing on selected growth regions. Sales increased by 9.3% in the emerging economies at actual rates (10.8% on a local currency basis) with particularly strong growth rates in China, Indonesia, Korea, and Russia.
Sales of “AND” products continued to increase at a significant rate and accounted for 31.5% of Company sales in 2007. We achieved an above-average increase in sales to our key accounts of 8.2% on a local currency basis (5.6% at actual rates). Sales to our top ten customers also continued to increase, accounting for 28% of Company sales in the period.
The following table provides a breakdown of revenue by region:
SALES BY REGION
Tables in Excel-Format| € million |
Q4
2006 |
Q4
2007 |
Change % |
2006 | 2007 |
Change % |
| EAME | 156.0 | 158.6 | 1.7 | 683.4 | 712.2 | 4.2 |
| Asia Pacific | 55.0 | 54.7 | –0.6 | 232.2 | 248.6 | 7.1 |
|
North America (including Mexico) |
52.7 | 50.7 | –3.8 | 230.9 | 224.2 | –2.9 |
| South America | 21.3 | 21.2 | –0.5 | 82.9 | 89.5 | 8.0 |
| Total | 285.0 | 285.3 | 0.1 | 1,229.4 | 1,274.5 | 3.7 |
Translated at 2006 exchange rates,
Symrise’s sales amounted to € 1,305.0 million in 2007, with the most
significant exchange rate effect recorded in the US. The translation of
sales reported in foreign currencies therefore reduced group sales in
2007 by € 30.5 million.
The income statement for 2007, the corresponding income statement items for the year-ago period (adjusted for non-recurring effects), and the unadjusted year-ago income statement items are presented in the table on the next page.