Symrise falls after FY EBITDA margin miss

Swedencare AB (publ)

23/01/2023 07:37

** Symrise's  SY1G.DE  shares fall around 4% in early trade
as the German flavour and fragrance maker reported lower than
expected EBITDA margin for 2022 and announced impairment for
Swedencare AB  SECARE.ST 
    ** The firm said its preliminary EBITDA margin, without the
126 mln euro impairment related to its nearly 30% stake in
Swedencare, came in at 20%, below the 20.9% anticipated by
investors
        ** "H2 margins missing to the point where FY margins
miss guidance is a concern," Jefferies says, cutting its target
price by 4% to 120 euros
  
        ** Still, it adds it believes the primarily scent-led
weakness will be transitory, pointing to Symrise's confirmation
of  the 20-23% margin range for 2023 and mid-term
  
    ** "Beside the margin miss, making impairments on freshly
acquired companies is disastrous, in normal times," a local
trader says
    ** Deutsche Bank also cuts its price target by 2.4% to 122
euros
    ** Symrise's stock falls to the bottom of Germany's blue
chip index  .GDAXI 
 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))