Symrise expects stronger growth, but lower margins - impact on Symrise shares

Symrise expects stronger growth, but lower margins - impact on Symrise shares

According to a report by www.finanzen.net, Symrise expects higher organic growth of more than 7 percent for the current year compared to the previously planned range of 5 to 7 percent. Nominal sales are expected to be around 4.7 billion euros. However, the adjusted EBITDA margin is expected to be 19 to 19.5 percent, which is below the previous forecast of “around 20 percent.” This is due to revaluations of inventories, lower raw material prices and negative currency effects. The Symrise share suffered massively on Friday due to this lower profitability, temporarily falling by 6.86 percent to 98.82 euros. The lowered margin forecast also affected its competitors Givaudan from Switzerland. This retracement mark is highly regarded by chart technicians.

DZ Bank analyst Thomas Maul commented that the capital market will ask itself how realistic the increase in margins reflected in the consensus estimates is. However, falling raw material prices and a better product mix could help the group increase profitability.

The lower margin is expected to have an impact on the Symrise share and also on the entire fragrance and flavor manufacturer market. Investors and investors will closely monitor the development of profitability. If the company succeeds in increasing profitability, this could have a positive impact on Symrise shares and its competitors. However, it remains to be seen how raw material prices and currency effects will develop in the future and to what extent these will influence the industry.