Reduced projected sales for Symrise revealed - Reduced Sales Projections Announced by Symrise
Symrise Tones Down 2025 Revenue Growth Forecast Amid Sluggish Consumer Demand
Symrise, a leading fragrance and flavor manufacturer, has revised its organic revenue growth forecast for 2025, lowering it from 5 to 7 percent to a more modest 3 to 5 percent. This adjustment, announced in Holzminden, comes in response to weaker consumer demand and waning confidence in key markets.
The German company, which operates in the food and beverage industry, cosmetics, and pet food, among others, saw its revenue decrease slightly year-over-year to 2.55 billion euros in the first half of 2023. Despite this decrease, earnings for Symrise rose 12 percent to 268 million euros during the same period.
The slowdown in growth is particularly noticeable in the Taste, Nutrition & Health segment, where organic growth dropped to 0.8 percent and revenues declined by 4 percent year-over-year. This division, which has historically seen robust growth, has experienced much slower growth compared to past years and fell short of consensus forecasts. The pet food sales, in particular, have flattened in the first half of 2025, and the moderate growth in food and beverage products has not been enough to offset this trend.
The weaker performance in the Taste, Nutrition & Health segment is not isolated. North America and Asia-Pacific markets have also shown marginal or negative growth, reflecting cautious consumer spending in these regions. These factors have outweighed the company's cost-saving measures and improved profitability efforts, as evident in the EBITDA margins that improved due to efficiency and cost savings, with €40 million targeted for 2025, half of which has already been realized in the first half of the year.
Investors have responded negatively to the downgraded revenue forecast, despite the margins rising, signaling concern about future top-line momentum rather than profitability improvements alone. The revised outlook underscores the challenges Symrise and other companies are facing due to waning consumer confidence and the persistent global economic challenges affecting consumer spending.
As a DAX company, Symrise continues to navigate these complexities, striving to maintain its position as a leading player in the fragrance and flavor industry.
[1] Symrise lowers 2025 forecast as Taste, Nutrition & Health segment growth slows
[2] Symrise lowers 2025 revenue outlook due to weaker consumer demand
[4] Symrise lowers 2025 revenue forecast amid waning consumer confidence
[1] Symrise announces a lower 2025 revenue forecast, citing a slowdown in growth within the Taste, Nutrition & Health segment, which could benefit from potential vocational training programs to develop new products and strategies that cater to current consumer preferences.
[2] In response to weaker consumer demand and key market downturns, Symrise, an industrial company in the food and beverage industry, cosmetics, and pet food, lowers its 2025 organic revenue growth forecast from 5 to 7 percent to 3 to 5 percent, suggesting the need for increased investments in vocational training and financial management to adapt.
