Foods

A deep dive into the construct of EBIT margins – Symrise, Givaudan and Kerry Group

  • Sectors : Foods
  • Companies : Symrise | Givaudan | Kerry Group

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Givaudan NEUTRAL 21/06/12 N/A N/A 231200chf
Kerry Group OUTPERFORM 30/06/09 N/A N/A 9170c
Symrise NEUTRAL 15/01/19 Outperform 21/06/12 7000c

DAVY VIEW

Margin delivery (2012-2017) at Givaudan and Kerry Group has impressed, +480bps and +230bps respectively. In contrast, Symrise’s EBIT margin has modestly declined – in part related to its revenue growth prioritisation (10% revenue CAGR). Until evidence of margin expansion at Symrise returns, we think a more cautious approach is warranted and, accordingly, lower our rating from ‘Outperform’ to ‘Neutral’. We maintain our ratings on Kerry (‘Outperform’) and Givaudan (‘Neutral’).

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Jan 15 2019, 07:10 GMT

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