Symrise - Strong execution as margin guidance lifted

Davy Research
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Symrise’s Q2 out-turn points to exceptionally strong top-line delivery in Nutrition with improving momentum in its Scent & Care business. Flavour top-line was more lacklustre. Operational leverage, strict cost control and lower raw material prices bolstered margin in the first half, prompting management to raise its full-year EBITDA margin outlook to 21-22%. Underlying FY upgrades will be tempered by FX headwinds. Against a multifarious backdrop, the interim update showcases Symrise’s ability to execute on strategy. We reiterate our ‘Outperform’ call.