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Jan 15 2019, 07:10 GMT
Foods
A deep dive into the construct of EBIT margins – Symrise, Givaudan and Kerry Group
- Sectors : Foods
- Companies : Givaudan | Kerry Group | Symrise
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’).
