MARKET & TECHNOLOGY
Aiming high from a strong foundation
A company exists successfully in the long term by growing. It not only consolidates but expands its market position to conquer new markets. At the same time, growth must be sustainable in every respect. Various strategies and activities are available to make sure this happens.
On March 9, it was time for Symrise to once again present its annual Corporate Report. As a listed company, Symrise is required by law to disclose its own statement of financial position and to answer questions from shareholders. The Corporate Report is painstakingly prepared and goes beyond mere figures to provide case studies, forecasts – and growth targets. It is a current profile and is available on the Symrise website.
The corporate strategy of Symrise rests on three pillars: growth, efficiency and portfolio. For years, Symrise has been growing faster than the market. In just ten years, the international company has thereby managed to mature into one of the most profitable companies in the fragrance, flavor and nutrition industry. As the Corporate Report 2020 reveals, Symrise was able to increase sales by 3.3 percent despite the pandemic and cyberattacks. The medium-term goals remain ambitious. By 2025, the aim is to have average annual growth of 5 to 7 percent (CAGR). The company’s own sales growth is expected to remain above average compared to the market as a whole, allowing Symrise to gain further market share and increase its lead over smaller competitors.
We’ve become better as well as bigger.”
Dr. Heinz-Jürgen Bertram, Chief Executive Officer at Symrise AG
MULTIPLE PATHS TO GROWTH There are several strategies to achieve these ambitious goals. One of them is organic growth – from investments and innovations. Another possibility is strategic growth through collaborations and acquisitions of companies and business units.
Another important aspect for securing sustainable growth in the long term is digitalization. Complex IT solutions, data-oriented manufacturing and artificial intelligence are basic building blocks for driving efficiency and innovation.
IDENTIFYING GROWTH DRIVERS “We’ve not only become bigger, but better, too – more sustainable and with a responsible focus on long-term value chains,” notes CEO Dr. Heinz-Jürgen Bertram. This always involves managing the next time horizon today and identifying future growth drivers and initiatives early on and defining what are known as step-change projects.
The following pages present examples from the Symrise universe of strategic and organic growth, along with the importance given to digitalization and the topic of sustainability. Eder Ramos, Global President Fragrance and Dr. Jörn Andreas, Global President Cosmetic Ingredients, provide insights into the growth targets of their divisions.
Digitalization is the key
Efficiency is needed to guarantee sustainable growth and increase profitability. For this, modern IT solutions like Symphony form the basis.
One step ahead through strategic acquisitions
Symrise is constantly on the lookout for meaningful acquisitions that promise relevant synergies in market access or technology transfer, and therefore growth. An example is the purchase of ADF/IDF and IsoNova and the positive effects on business with existing customers.
Growth and expansion
Symrise has been growing for years, primarily under its own steam. Organic growth is one of the company’s key growth drivers.