Symrise AG anticipates a negative impact on its 2025 financial performance due to restructuring costs tied to its terpenes business divestiture and a strategic reevaluation of its pet-care portfolio. The company cited a projected EBITDA reduction of €40 million and a one-time charge of €25 million related to these moves.
- Symrise forecasts €40 million EBITDA reduction in 2025 due to restructuring
- One-time charge of €25 million linked to terpenes divestiture and pet-care stake adjustments
- Terpenes segment generated €85 million in 2024 revenue, to be fully exited by mid-2025
- Impairment loss of €15 million from pet-care joint venture reassessment
- Revised strategy focuses on specialty ingredients and sustainable formulations
- Divestiture and restructuring expected to enhance long-term capital allocation
Symrise AG has revised its outlook for 2025, forecasting a decline in earnings before interest, taxes, depreciation, and amortization (EBITDA) due to ongoing strategic realignments. The company cited the divestiture of its terpenes production assets and a reassessment of its stake in a pet-care joint venture as primary drivers of the shortfall. These actions are part of a broader initiative to streamline operations and focus on high-growth segments within the fragrance and flavor industry. The firm expects a €40 million reduction in EBITDA for 2025 compared to prior projections, with a one-time charge of €25 million recorded in the first quarter. This charge includes severance costs, asset write-downs, and integration expenses associated with exiting non-core operations. The terpenes segment, which contributed approximately €85 million in revenue in 2024, will be fully divested by mid-2025, resulting in a loss of recurring income that will not be fully offset in the near term. The pet-care stake reevaluation involves a partial exit from a joint venture established in 2022, which has underperformed relative to initial targets. Symrise will recognize a €15 million impairment loss on the investment, reflecting lower-than-expected margins and slower market penetration in the premium pet nutrition segment. Despite these charges, management emphasized long-term strategic benefits, including improved capital efficiency and a sharper focus on specialty ingredients and sustainable formulations.