HOLZMINDEN (dpa-AFX) - Demand for fragrances for expensive perfumes and for additives for personal care and household products provided Symrise with a strong tailwind in the first quarter. The business with additives for pet food also grew significantly on its own. Overall, the company grew faster than analysts had expected on average. However, the expectations of many investors were high after Swiss competitor Givaudan had already impressed with its start to the year. The Symrise share price came under significant pressure on Thursday.

In the morning, the shares brought up the rear in Germany's leading index, the Dax, falling by 3.7 percent to 100.30 euros. They thus continued their recent downward trend, having recovered to almost 113 euros in March.

Overall, the Lower Saxony-based manufacturer of fragrances, flavors and food additives increased its revenue in the first quarter by 5 percent year-on-year to almost 1.3 billion euros, according to a statement on Thursday. Excluding exchange rate effects as well as acquisitions and disposals of business units, the increase amounted to 10.9 percent.

Nevertheless, competitor Givaudan had set the bar very high in view of organic growth of 12.6 percent in the first quarter, wrote analyst Charles Bentley from investment house Jefferies in an initial reaction.

For Isha Sharma from the investment house Stifel, the slightly lower growth compared to Givaudan is mainly due to a somewhat sluggish price development due to the product mix. Nevertheless, he sees the stable price development in the Taste, Nutrition & Health division as positive, especially because there have recently been concerns about the business with additives for pet food.

Symrise confirmed its annual targets. All in all, the DAX-listed company intends to grow faster than the relevant market this year, specifically by 5 to 7 percent. Around 20 percent of sales are to be retained as earnings before interest, taxes, depreciation and amortization (EBITDA). This assumes largely stable raw material costs.

In order to achieve the targets, a number of measures have already been taken to increase profitability, such as strict cost management throughout the company. Symrise will not comment specifically on profit development until the publication of the half-year figures./mis/ngu/jha/