By Bartosz Dabrowski
(Reuters) -Symrise beat first-quarter sales estimates on Thursday on higher demand but shares in the German flavour and fragrance maker fell as the result lagged behind Swiss peer Givaudan.
The stock was down 3.6% as of 0750 GMT after Symrise's January-March revenue rose 5% in the reporting currency to 1.29 billion euros ($1.38 billion), above analysts' average forecast of 1.27 billion euros in a company-provided poll.
Like-for-like sales in its scent and care division grew 13.7% to 516.4 million euros, while the taste, nutrition and health business fell 0.1% to 775.2 million euros.
"The only negative was growth at Taste which was below expectations," Vontobel analyst Arben Hasanaj said. "Clearly, expectations by investors have been rising ever since Givaudan reported stellar results."
Swiss competitor Givaudan reported first-quarter sales above market expectations earlier this month, driven by improving volume demand and good business momentum.
Easing destocking trends are supporting flavour and fragrance makers' return to stable volumes after a wave of inventory reductions and lower demand weighed on volumes throughout last year.
Symrise, whose fragrances go into the perfumes of French luxury giants LVMH (EPA:LVMH) and Kering (LON:0IIH), said organic sales, which do not take currency effects into account, rose 10.9% in the quarter.
The group reaffirmed its 2024 and mid-term forecasts, including an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 20% this year, annual sales growth of 5% to 7% until 2028 and an EBITDA margin of between 20% and 23% during the same period.
($1 = 0.9341 euros)