Fragrance and flavours player Givaudan has reported strong gains in both of its business divisions, with sales of fragrances, and specifically fragrance compounds, providing the driving force.
The company said that full-year group sales in local currencies, including both flavours and fragrances, increased by approximately 6.6 percent to CHF 4.25bn (€3.45bn), a figure that was driven by a 13.2 percent growth in sales from developing markets.
Meanwhile, the increased revenues for the group also translated into higher profits, with the EBITDA going up by 15 percent to CHF870m, while net income increased to CH 411m in 2012 from CHF252m in 2011, driven by an improved operating performance, lower financial expenses and a lower income tax rate.
Sales in fragrances up 8.4 percent
Sales in the fragrance division were CHF2.02bn, an increase of 8.4 percent in local currencies and 10.3 percent in Swiss francs, whereas sales in the flavour division were CHF2.23bn, an increase of 5.0 percent in local currencies and 7.4 percent in Swiss francs compared to 2011.
Breaking down the sales for the fragrance division, the company said that it was sales of the compounds, which combines fine fragrances and consumer products, that was the driving force behind the gains.
Sales for this business unit grew by 10.3 percent in local currencies and by 12.2 percent in Swiss francs to CHF1,78bn, compared to CHF1.58nm.
This performance was attributed to a strong performance in developing markets and a good performance in Europe and the US, although sales of fine fragrances were reported to be weaker in the US.
Fragrance compounds buoy slower sales for fragrance ingredients
Overall the combined performance of these two units helped to counterbalance the performance in the fragrance ingredients unit, where sales decreased by 3.9 percent in local currencies.
The company said that the lower sales in this unit were driven by lower sales volume in commodities, although sales of specialty ingredients did help to buoy the overall performance, particularly in Asia Pacific and Latin America.
Looking ahead the company says that in the mid-term, its overall objective is to grow organically between 4.5 percent and 5.5 percent per annum, assuming a market growth of 2-3 percent, while continuing to outgrow the underlying market growth.