* Lowers 2020 organic sales growth guidance to 3-4%
* Lockdowns and travel bans hit makeup, sunscreen, and perfume additives and food ingredients related to dining out
* 9-month sales at 2.7 billion euros, slightly below analyst expectations (Adds detail, shares)
Oct 29 (Reuters) - German flavour and fragrance maker Symrise lowered its sales guidance for the year on Thursday as the COVID-19 pandemic hit sunscreen and perfume ingredients, as well as sweets and soft drinks associated with dining out.
The company expects organic growth in sales of 3-4% this year, down from a previous forecast for above that range. The updated guidance for the year is also below its target of annual organic growth of 5-7% by 2025.
“Product solutions for food as well as personal care and hygiene remained in high demand, while demand for luxury items such as fine fragrances was less,” Chief Executive Heinz-Juergen Bertram said in a statement.
Sales of sunscreen ingredients and fine fragrances used in the perfumes of French luxury giants LVMH and Kering continued to face lower demand owing to travel bans and lockdowns.
The maker of ingredients such as artificial mint flavouring saw strong demand for baked goods and cereals as people cooked and baked at home, but the pandemic dented sales of beverages and sweets associated with dining out.
With COVID-19 cases surging again and lockdowns being reinstated in Europe, people kept stocking up on consumer staples.
Swiss rival Givaudan said earlier in October sales growth accelerated in the third quarter as demand for items like toothpaste and soap held up and sales of perfume improved slowly.
Symrise’s revenue rose 5.9% year on year to 2.7 billion euros in the January to September period.
The company aims to increase annual sales to between 5.5 billion and 6 billion euros ($7.09 billion) by the end of 2025.
Shares fell as much as 5% on Thursday after the results but pared some losses, trading down 1% at 0955 GMT.
“Any negative share price correction in coming days might provide an entry opportunity as we still expect an improving momentum in 4Q,” Baader Helvea analyst Andreas von Arx says. ($1 = 0.8461 euros) (Reporting by Silvia Recchimuzzi in Gdansk Editing by David Goodman and Keith Weir)