Symrise Is on Track for Strong Growth in Sales and Earnings in 2022; Shares Fairly Valued

Wide-moat Symrise reported third-quarter organic sales growth of 13.6% in its trading update, beating Vara consensus of 10.9%. For the full year, Symrise upgraded its organic sales growth guidance to “more than 10%” from “significantly above 7%” previously. Consensus was already expecting about 10%. Importantly, the EBITDA margin is still expected to be 21%, meaning Symrise should also see strong earnings growth this year despite sharply rising raw material and energy cost inflation. Shares were up around 2%-3% intraday, reflecting consensus expectations that were already above management's guidance. We expect to raise our near-term forecast, but don’t expect to make a material change to our EUR 98.50 fair value estimate.