Symrise AG forecast a low single-digit decline in first-quarter organic sales while reporting its highest adjusted EBITDA margin in a decade, signaling a recovery heavily weighted towards the second half of 2026.

Group sales reached €4.93 billion for the full year, driven by 2.8% organic growth and a 120 basis point improvement to a 21.9% adjusted EBITDA margin, the strongest in ten years. Chief Executive Jean-Yves Parisot attributed this to disciplined cost management and efficiency measures that strengthened cash conversion. For 2026, the company targets organic sales growth of 2% to 4% and an adjusted EBITDA margin of 21.5% to 22.5%, with the first quarter expected to show low single-digit organic sales decline against high prior-year comparables.

Fourth-quarter group sales of €1.15 billion were in line with consensus, beating organic growth expectations by 110 basis points. Latin America led regional performance with 7.2% organic growth, followed by North America (5.9%) and Asia/Pacific (5.3%), while EAME declined 0.1%. The Taste, Nutrition and Health segment drove profitability, exceeding consensus EBITDA by €29 million and achieving a 23.8% adjusted EBITDA margin. However, second-half EBITDA for Scent and Care missed consensus by €8 million, with margins down 70 basis points. Symrise also proposed raising its dividend to €1.25 per share and launched a €400 million share buyback program.

This guidance implies significant second-half weighting, as noted by Jefferies, which rates the stock "underperform" with a €69 target. The margin strength and cash flow generation provide a solid foundation, though the Q1 sales dip and Scent and Care challenges warrant close monitoring.