Symrise Earnings: Strong First-Quarter Organic Growth; Outlook for 2023 Maintained

Wide-moat Symrise reported 10.6% organic growth in its first-quarter trading update. This beat the Vara consensus of 8.6%. The Taste, Nutrition & Healthcare segment was the main contributor to the positive development. Despite high inflation and market volatility, Symrise remains optimistic about the rest of the year, with a confirmed outlook aiming for organic sales growth of 5% to 7% and an EBITDA margin of around 20% for the current fiscal year. The company expects to increase sales by 5% to 7% annually until 2025, with an EBITDA margin in the range of 20% to 23%. This is in line with our forecast, and as a result, we are maintaining our EUR 98.5 fair value estimate. At current levels, the shares look overvalued.