FRANKFURT (dpa-AFX) - Investors cashed in on the recently well-performing Symrise shares on Thursday. Analysts rated the business figures of the flavor and fragrance manufacturer as at best in line with expectations. The confirmed annual outlook also failed to inspire.

Around midday, the shares lost 1.6 percent to 114.90 euros in the weak Dax. They thus paid some tribute to the recent upward trend, which had brought them to their highest level since the beginning of 2022 at EUR 117.20 the previous day. So far in 2024, the share price has risen by an above-average 15%. The German benchmark index has risen by 9.6 percent in the same period.

Symrise achieved strong sales growth in the first half of the year thanks to good business with expensive perfumes and additives for pet food. Thanks to a cost-cutting program, earnings before interest, taxes, depreciation and amortization (EBITDA) increased even more significantly. Symrise maintained its outlook. However, CFO Olaf Klinger emphasized in a conference call that he was optimistic that the company would at least reach the upper end of the target range for organic sales growth. More information on this was provided when the figures for the third quarter were presented.

Although the figures were largely in line with consensus estimates, the market had probably hoped for more, commented analyst Konstantin Wiechert from Baader Bank.

Analyst Georgina Fraser from the US investment bank Goldman Sachs spoke of a disappointing second quarter compared to the competition. In addition, the confirmed target range for organic sales growth was below consensus and even more clearly below her more optimistic estimate. Investors with whom she had spoken prior to the presentation of the figures had expected a strong quarter and an increase in the EBITDA target. Expectations for this key figure could now prove to be too ambitious, especially as the margin in the second half of the year is traditionally lower than in the first half anyway.

After lowering its 2023 forecast, Symrise is probably well advised to confirm the outlook, added Charles Eden from the major Swiss bank UBS. However, the lack of an increase is likely to disappoint investors.

Meanwhile, the shares of Swiss competitor Givaudan were unimpressed by the Symrise news on Thursday: Up 1.1 percent, they continued their recovery from just over a week ago when the company disappointed with its interim report. They thus increased their annual profit to around 23 percent./gl/mis/jha/