In 2023, Iberchem led sales growth thanks to its strong presence in high-growth markets. The group, which comprises Iberchem's own fragrance company Iberchem, fragrance house Parfex and scent house Scentium, has announced another year of strong double-digit growth. Sales exceeded €290m for the first time, up 17%, or 18% at constant rates, outperforming the industry average growth rate.
The strong performance during 2023 was driven by Iberchem's leading position in key markets such as Asia, the Middle East and Africa, as well as sales synergies with Croda and Parfex, which was acquired in 2021.
We spoke to Jose Balibrea, Managing Director of Iberchem, about the results achieved, the milestones reached in 2023 and the expected projection for 2024.
- Could you list three company milestones in the last 12 months?
I could list different milestones the company has reached over the past year. However, I would like to highlight the new creative centre we opened in Jakarta. This is a very important move for our market in Indonesia, which we started two decades ago.
On the other hand, our production site in China started in 2002. After 20 years of continuous growth, we are proud to announce the start-up of a new manufacturing plant in Guangzhou that will allow us to increase our capacities fivefold. The start-up is scheduled for 2025. In addition, we have expansion projects in France, Spain and Dubai, which started in 2023.
- How have the company's financial results fared compared to previous years, and have there been any notable changes?
In 2023 we reported, once again, a strong performance. We had an 18% growth in sales, reaching €290m. Our strategy of putting the customer at the heart of our business and offering the best service remains the cornerstone of Iberchem's strategy.
The wonderful world of fragrances and aromas is constantly reinventing itself. At Iberchem we have new olfactory trends every day supported, of course, by a consolidated team of 1,200 committed employees.
In terms of sustainability, we have been focusing on this issue for several years, specifically working on the impact on the environment in the areas of water consumption, waste generation and carbon footprint. To date, it can be said that all Iberchem subsidiaries have plans in place to reduce their carbon footprint, water consumption and waste to landfill in order to meet Croda's objectives and to be leaders in sustainability in the sector by 2030.
Although there is variability between the different subsidiaries, in the fragrances area, approximately 50% of the water consumed is for domestic use and the remaining 50% for industrial use; in flavourings the percentage mainly used in processes is higher. For simplicity and immediacy, in the first phase, work is being done on reducing domestic water consumption and integrating industrial water reuse solutions in new projects when the technology is available locally or there is space to locate it.
With regard to the carbon footprint, all subsidiaries also have decarbonisation plans, in which we have initially focused on a strategy to reduce emissions in scopes 1 and 2, through the use of renewable energies, installation of solar generation systems and reduction of emissions in systems with significant emissions.
- How did the company adapt to market changes during the year?
Since its founding in 1985, Iberchem has developed one of the most successful business models in the fragrances and flavours sector.
Our growth is steady and sustainable despite some raw material crises or geopolitical volatility in some of our key markets. Thanks to our flexible and agile organisation, we take periods of uncertainty as a competitive advantage.
We work with the most important companies in each of the regions across all categories, growing among our long-term customers and attracting new ones. We are grateful to each of them as they represent the highest proportion of our customer base. In addition, we are increasing our success with large multinationals and global accounts. In this respect, being part of a strong corporate group such as Croda brings great synergies.
Finally, I am proud of the team in the company. Companies are made up of people and people make the difference. Our organisation is flexible and agile, and evolves rapidly not only in the face of market changes, but also in the integration with the Croda group of which we have been part since 2020, which has brought about many internal changes in terms of work methodology and processes. In general, the team of people that make up Iberchem has been able to adapt to these new changes with complete success.
- How did the company's performance align with its long-term objectives?
Iberchem has high credibility with its growth plans. We had a wonderful 20-year journey under four different private equity owners and their contribution was key to creating an established leadership team.
Since the end of 2020, Iberchem, Parfex and Scentium are part of Croda, the company behind the sustainable ingredients and technologies used by countless major and prestigious firms around the world.
In this sense, it is a very valuable combination for our customers, we are proud of the integration and the synergies we are establishing, but at the same time, we preserve the individual key success factors of the three brands in our own Personal Care (F&F) division.
All in all, we can be proud of the work done during 2023, as we achieved all the targets set, in line with the 2027/2030 objectives, and we have taken the Iberchem group to new heights and successes.