Analyst Note| Rob Hales, CFA |
Wide-moat Symrise reported first-half EBITDA of EUR 486 million, up 16% versus 2021 and slightly above Vara consensus. First-half organic growth of 10.2% (12% for the second quarter) was ahead of expectations with good price increases offsetting rising costs. Given progress to date, Symrise raised 2022 guidance for organic growth significantly above 7% (previously 5%-7%) with an EBITDA margin of around 21% (unchanged). We expect to tweak our near-term forecast upward, but don’t expect to make a material change to our EUR 98.50 fair value estimate. At current levels, the shares look overvalued.