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Jan 24 2019, 15:30 GMT
Symrise
Capital Markets Day – revenue mix key to unlocking margin
DAVY VIEW
Symrise’s 2020-2025 targets are premised on the on-going delivery of sector-leading organic revenue growth. It anticipates that revenue mix will drive margin expansion (20-23% EBITDA margin range from 2020). Revenue growth targets necessitate capex to sales of c.6% until 2021. The mid-point of its target implies that PAT will more than double by 2025 (12% CAGR 2017-2025). Following three consecutive years (including 2018E) of underlying margin declines, we await evidence of margin expansion. We retain our ‘Neutral’ rating.
