Symrise's half-year sales rise on fragrance business growth

By Antonis Pothitos

(Reuters) -German flavour and fragrance maker Symrise posted a 6.3% rise in its half-year sales on Thursday, in line with expectations, mainly driven by its scent and care business.

Its revenue rose to 2.57 billion euros ($2.78 billion) in the January-June period, while analysts polled by Vara Research were expecting 2.56 billion euros on average.

Organic sales, which do not take currency exchange effects into account, increased by 11.5% in the same period.

Symrise, whose fragrances go into the perfumes of French luxury giants LVMH and Kering, confirmed its annual targets for organic sales growth of 5-7% and a core profit (EBITDA) margin of around 20%.

Finance chief Olaf Klinger said during a press conference that Symrise expected the organic growth to come at the upper end of that range at the minimum.

"We'll see if we can adjust it again at the end of Q3," he added.

Easing destocking trends are supporting flavour and fragrance makers' return to stable volumes, after a wave of inventory reductions and lower demand weighed on volumes throughout last year.

However, the company's shares slid 1.8% by 1130 GMT.

Baader Helvea analysts said the market had been looking for a slight beat to the consensus, while Morgan Stanley pointed to the lack of an upgrade in the margin guidance.

Half-year sales in Symrise's scent and care division rose 12.1% in the reporting currency, boosted by double-digit percent organic growth at its fine fragrances and consumer fragrances units.

The taste, nutrition and health segment, which makes ingredients used in food, beverages and pet food, posted a 2.9% revenue rise on the same basis.

Swiss rival Givaudan also posted higher half-year sales last week, although its second-quarter growth showed signs of stabilisation after a strong start to the year, sending its shares lower.

($1 = 0.9236 euros)

(Reporting by Antonis Pothitos in Gdansk; Editing by Milla Nissi)