Hochdorf Group: implementation of strategy continues – expected earnings not yet realized
Hochdorf generated a net sales revenue of CHF 561.0 m in 2018 (−6.6 % compared to previous year (PY)). Earnings before interest and taxes (Ebit) amounted to CHF 18.6 m (−56.2 % PY) with a net profit of CHF 8.7 m (PY CHF 40.8 m).
Although significantly below the record figures of the previous year, the sales and earnings figures are within those forecast by the company in December 2018. The main reasons for the disappointing results are the significantly lower performance of Pharmalys Laboratories SA, the lack of sales in China, delays in the new spray tower line and a worsening of the problems in the Dairy Ingredients division, as well as the one-off effect from the sale of Hochdorf Baltic Milk UAB.
Olam announces acquisition of BT Cocoa, Indonesia’s largest cocoa processor
The global food and agribusiness Olam International Ltd has announced that it has acquired an 85 % share of YTS Holdings Pte Ltd for a consideration of USD 90 m, which is 100 % owner of BT Cocoa.
With the acquisition, Olam Cocoa adds 120,000 metric tonnes of cocoa bean processing capacity and 30,000 metric tonnes of cocoa mass pressing capacity to serve increasing demand for cocoa products in Asia, especially cocoa powder. “We are excited to have the opportunity to rapidly expand our footprint in Asia and to develop this business with the founder and family of BT Cocoa. Our longstanding relationship will enable us to deliver world class cocoa ingredients and services to our expanded customer base and look to strengthen these relationships in the future in one of the fastest growing regions in the world,” explains Gerard A. Manley, CEO of Olam Cocoa.
The transaction brings together Olam Cocoa, one of the world leaders in traceable cocoa sourcing and processing, with one of Asia’s leading cocoa processors. It strengthens the brand portfolio offering by adding strong Indonesian national brand BT Cocoa and enables the further development and growth of Olam Cocoa’s Huysman brand. The significant synergies derived and a competitive cost advantage will add further value.
ADM invests in further global growth of natural citrus offerings with acquisition of Ziegler Group
Archer Daniels Midland Company (NYSE: ADM) announced that it has reached an agreement to acquire the Ziegler Group, a leading European provider of natural citrus flavour ingredients.
“Ziegler is highly respected as a cutting-edge leader in citrus, and we’re excited to welcome their outstanding leadership and talent to ADM,” said Vince Macciocchi, President of ADM’s nutrition business. “The combination of Ziegler and Florida Chemical will immediately position ADM for growth as a global leader in natural citrus ingredients, with a complete range of innovative citrus solutions and systems for food, beverage and fragrance customers.”
Founded in 1963, Ziegler uses proprietary cold concentration technologies to produce natural high-quality citrus oils, extracts, concentrates and compounds for flavour, food, and beverage industry customers, focusing on Europe, the US and Japan. The company is privately held and headquartered in Aufsess/Germany.
Symrise successfully continues profitable growth course in 2018
Symrise AG, Holzminden, took full advantage of its growth opportunities in 2018 and successfully overcame headwinds resulting from external factors. Taking into account portfolio and exchange rate effects, sales increased by 5.3 % to € 3.15 bn (2017: € 23 bn).
This outstanding performance was carried by all segments and regions. Despite targeted investments in increased capacity at locations in China and the USA and negative effects from exchange rates and raw material costs, Symrise retained its earnings power. The Group achieved earnings before interest, taxes, depreciation and amortization (EBITDA) of € 631 m (2017: € 630 m). With an EBITDA margin of 20.0 %, profitability remained healthy and within the target corridor of 19–22 %.
"In 2018 we seamlessly continued our success story. Symrise again grew profitably and outperformed the market. We identified and successfully capitalized on growth opportunities in every business segment. We also invested in future growth and added to our capacity. Although we were not able to counteract all of the headwinds caused by high raw material prices and negative currency effects, we still operated with a healthy profitability. We want our shareholders to participate in this success. At the Annual General Meeting, the Executive Board and Supervisory Board will propose a dividend increase to € 0.90 per share for the fiscal year 2018," said Dr. Heinz-Jürgen Bertram, CEO of Symrise AG.
Symrise again grew significantly faster than the relevant market for fragrances and flavors, where growth in 2018 was in the 3–4% range. Dynamic trend in Latin America and Asia/Pacific The growth driver at regional level was once again Latin America with an outstanding double-digit organic growth rate of 16.2 %. Business in the EAME and North America regions developed also highly positively, with an organic increase of 6.4 % and 6.1 %, respectively. In the Asia/Pacific region, Symrise achieved strong organic sales growth of 12.4 %. Overall organic sales growth in the dynamically expanding Emerging Markets reached 11.7 %. In these fast-developing markets,
The Flavor segment experienced strong organic growth of 9.5 %, with sales increasing to € 1.2 bn (2017: € 1.1 bn). Taking currency effects into account and the portfolio effect from the Cobell acquisition, sales in the segment grew by 8.1 % in reporting currency. All regions and application areas contributed to this positive development. Flavor benefited in particular from strong demand in the EAME region, which achieved impressive double-digit growth. Growth was driven furthermore by applications for sweets and beverage products. The Nutrition segment increased organic sales in the past fiscal year by 7.4 % to € 639 m (2017: € 631 m). In the reporting currency, including portfolio and currency effects, the segment grew by 1.2 %. The strongest impetus came from the Pet Food application area. The Food application area also performed well with double-digit growth. In the year under review, Nutrition achieved an EBITDA of € 132 million (2017: € 139 million). The decline in earnings compared with the previous year is attributable to two factors: Investments in the new Diana Food location in the USA and a lower contribution to earnings from Probi due to a temporary inventory decrease by a major customer in the first half of the year.
Symrise is looking ahead to the current fiscal year with confidence. The Group again aims to exceed the overall growth rates in the relevant market. The market is projected to grow at a rate of 3–4 % worldwide. In addition, Symrise is targeting an EBITDA margin of around 20 % despite the anticipated economic slowdown, ongoing volatility in exchange rates and a tight market for raw materials. Overall, with its global presence, diversified portfolio and broad client base, Symrise believes it is well positioned to achieve these goals. With strategic investments, the company group plans to continue its expansion in high-growth, high-margin business segments. Against the background of the tense situation on the raw material markets, the expansion of its own backward integration will continue to play a key role in the future. In addition, long-term contracts and close cooperation with producers will secure Symrise's access to high-quality raw materials.
Multivac to establish new production facility in China
In February 2019, Multivac signed an investment agreement to establish a new production company in Taicang/China.
“China is a significant market for us,” said Guido Spix, Director and Group COO/CTO. “This makes the establishment of a local production facility a logical step for us and a further stage in expanding our global production and sales network. Our objective is to achieve shorter delivery times for our customers and to be able to respond even more rapidly to the needs of local customers”.
Südpack launches packaging for rigid applications
Strong sealing properties, easy opening and high-opacity white colouring are characteristics of plastic film innovator Südpack’s new launch, the Smart Peel.
Smart Peel’s resistance to punctures or tears ensures more reliability in the packaging process. The white colouring of the Smart Peel also eliminates the need for subsequent white printing and offers a strong background for printed designs. White colouring also offers advantages in terms of product quality: its opacity protects products from the effects of light and helps prevent spoilage, the company describes.
Barry Callebaut opens new office and Chocolate Academy center in Beijing
The Barry Callebaut Group celebrates today the opening of its new office and its new Chocolate Academy center in Beijing with customers (global and local food manufacturers, as well as professional chocolatiers) and distribution partners.
China has been a key target market for Barry Callebaut for over a decade. Already back in 2008, Barry Callebaut opened a chocolate factory and a Chocolate Academy center in Suzhou, followed by a relocation of the offices and the Chocolate Academy center to Shanghai in 2010. The offices in Shanghai, which will continue to be the company’s head office in China, are currently being expanded. Barry Callebaut also chose Shanghai for the global launch of Ruby, the fourth type of chocolate, in 2017.
With the addition of the new Beijing office, Barry Callebaut China has increased its sales representatives in the Greater China region spanning Chengdu, Guangzhou, Hangzhou, Shanghai, Suzhou, and Taipei and extended its distribution network across 21 key- and second-tier multi-million cities in China including Chongqing, Dalian, Kunming, Nanjing, Ningbo, Tianjin, Xiamen, and Wuhan.
Although the domestic chocolate industry witnessed a boost in sales volume recently, chocolate consumption per capita in China is still at 100 g – with plenty of room to grow. According to analyst firm Nielsen, the chocolate confectionery category in China grew (in terms of volume growth) by 4.5% in the last twelve months.
“Free From Functional Food & Health Ingredients” trade fair connects manufacturers and retailers
On 28 and 29 May, this year’s “Free From Functional Food & Health Ingredients (FFFHI)” will bring around 350 market-leading exhibitors to Barcelona/Spain.
The two-day event, which takes place in the Gran Via at Fira de Barcelona, will allow brand and private label owners and marketers to learn from and be inspired by technology experts in one convenient location. Manufacturers will be able to gather information about ingredients that can be used to deliver Free From foods, beverages and functional products. Retailers, meanwhile, will be able to see first-hand the latest developments in Free From, vegan ingredients, alongside natural and organic products that satisfy the ongoing trend towards foods from sustainable and natural sources.
DSM and Cargill joint venture begins: Avansya sweetness partnership established
DSM has announced the establishment of Avansya V.O.F., a 50:50 joint venture between Cargill and DSM.
As food and beverage producers look to significantly reduce calories in their offerings to consumers, they are in need of non-artificial, zero-calorie, great-tasting sweetener options. Avansya will produce highly sought-after, sweet-tasting molecules, such as steviol glycosides Reb M and Reb D through fermentation, giving food and beverage manufacturers an even more scalable, sustainable and low cost-in-use solution than if these same molecules were extracted from the stevia leaf. Avansya’s sweeteners will be produced at a fermentation facility at the Cargill site in Blair and Avansya will market its sweeteners under the EverSweet brand.
Bell Flavors solution allows for 30 % sugar reduction
Bell Flavors & Fragrances EMEA (Bell), supplier of flavours, botanical extracts and specialty ingredients, has launched a functional taste solution for a 30 % reduction of sugar in products like ice cream and bakery applications.
Customers are increasingly requesting solutions that do not contain artificial sweeteners or sweeteners, at all. As they prefer a natural based sugar-reducing solution over a zero-sugar option using artificial sweeteners, there is a growing need for natural flavours and products based on natural ingredients.
The REDsugar flavours keep complex matrices in applications by reacting with existing structures. This helps to close the sugar gap and to maintain mouthfeel, taste and texture, while delivering a positive impact on the sweet perception of a product. As a result, sugar content can be decreased by at least 30 %, depending on the type of application.
