Symrise AG

Symrise reported first-half 2026 sales of EUR 2.539 billion, with organic growth of 2%. In Q2, sales were EUR 1.22 billion and organic sales rose 4.5%, including 5.1% volume growth and 0.7% negative pricing. Adjusted EBITDA for H1 was EUR 553 million with a margin of 21.8%; gross profit was EUR 1.05 billion with a gross margin of 41.3%, essentially in line with last year. Adjusted business free cash flow increased 47% year over year to EUR 347 million, or 13.7% of sales, up 450 basis points. Management reaffirmed 2026 guidance for organic growth of 2% to 4%, adjusted EBITDA margin of 21.5% to 22.5%, and adjusted business free cash flow margin above 14%; it also said Q3 organic growth should be similar to Q2, around 4% to 5%.

Jean-Yves Parisot emphasized that the business gained momentum through the half, with Q2 growth driven by stronger volumes, commercial execution and broad-based strength in North America and Asia Pacific. He framed the ONE SYM transformation as moving from planning to implementation, with clearer priorities, more disciplined resource allocation and a focus on making the company more focused and scalable. He also highlighted portfolio actions, including the Aqua Feed exit, continued Terpenes divestment discussions and the planned Floral Concept acquisition to strengthen premium natural ingredients in fine fragrance.

Olaf Klinger focused on the quality of earnings and cash. He said gross profit was EUR 1.05 billion with a 41.3% gross margin, adjusted EBITDA was EUR 553 million at 21.8%, and the 30 basis point margin decline mainly reflected freight/logistics costs tied to the Middle East situation, timing of customer surcharges, and reinvestment behind strategic priorities. He called H1 cash generation a standout: adjusted business free cash flow of EUR 347 million, a 13.7% margin, and said the company is still confident in reaching above 14% for the full year. He also noted net debt rose to EUR 2.3 billion from EUR 2.1 billion at year-end 2025, equity ratio improved to 49.2%, net leverage was 2.2x adjusted EBITDA, and the share buyback program had around EUR 192 million invested at H1 end.

Analysts pressed management on whether the strong cash flow was structural or timing-related; Olaf said the improvement was driven by working capital discipline, especially supplier payment terms, lower inventory build, and CapEx discipline, and said there was nothing exceptional or structural from taxes or other items. On pet food, management explained the H1 softness in Pet Nutrition as mainly price normalization after last year’s strategic price reset, while saying volumes are recovering and Q3/Q4 should be better. Questions also focused on Scent & Care pricing, regional growth, and the margin outlook; management said the pricing actions are tactical, designed to regain market price while volumes grow, and that margin protection will come from operational excellence, procurement and logistics efficiency rather than from price alone.