Symrise lifts profit margin outlook as Fragrance growth holds steady

Cost-cutting and premium scent demand offset slower global sales

Symrise, one of the major global suppliers of fragrance ingredients, has raised its profit margin forecast for the year after delivering stronger earnings in the first half of 2025 after trimming its sales outlook amid a more cautious global consumer environment.

The Germany-based company, which supplies scent molecules and naturals to fine fragrance houses and consumer goods brands, grew its organic sales by 3.1% in the first half of the year. It now expects full-year organic growth of 3–5%, a reduction from an earlier projection of 5–7%.

Yet profitability is where Symrise is making gains. Its EBITDA margin, an indicator of operating profit, rose to 21.7% in the first half, up 1 percentage point year-on-year. The company now targets a 21.5% EBITDA margin for the full year, slightly higher than previously guided.

Fragrance division delivers

For those closely following the scent industry, Symrise’s Scent & Care segment is where most attention lies. It includes fine fragrance, consumer scent, oral care, aroma molecules and cosmetic ingredients.

The segment reported 2.9% organic sales growth, with fine fragrance seeing double-digit gains and consumer scent posting solid growth as well. Demand for aroma molecules remained strong in the US, India and Mexico, while cosmetic ingredients faced a dip due to tough comparisons with last year’s sun care boom.

EBITDA in the Scent & Care segment rose to €190 million, with margins improving to 19.2%.

Cost cuts and strategic refocus

Symrise is undertaking what it calls its “ONE SYM” transformation plan, which is now in its second phase. The company delivered €20 million in recurring cost savings in H1 as a result of the One Sym plan and is targeting €40 million in full-year savings.

It also plans to exit or rework lower-priority parts of its portfolio, including divesting its aqua feed business and seeking “strategic alternatives” for its terpene ingredients line, a category often seen as less differentiated in today’s competitive scent market.

CEO Jean-Yves Parisot said the changes aim to make Symrise “structurally stronger” and able to deliver “durable profitable growth”.

What it means for the fragrance world

While Symrise is feeling the impact of slower global demand, particularly in price-sensitive segments like pet care, it states that it continues to outperform the market and protect margins through a mix of pricing discipline, operational efficiencies, and portfolio refinement.

Behind the scenes of your favourite perfume launches, companies like Symrise play a central role crafting the molecules and naturals that perfumers rely on. These results show that demand for fine fragrance ingredients remains strong, even as mass-market categories show softness.

In a world of cautious spending, it’s clear that fragrance, particularly in its most refined forms, remains resilient. Symrise’s evolving strategy shows how the business of scent is changing: leaner, more focused, and increasingly driven by value-added creativity.