Givaudan’s strong growth impacted by strength of Swiss currency
For the first six months of the financial year, starting January 1st, the company recorded a total income of CHF 2.2 billion, which was a 4.5% increase on a like-for-like basis from local currencies.
However, the company says the performance was hit significantly by foreign currency translations against the strong Swiss Franc, which meant that the reported income actually fell by 1.5% - a figure that also underlines the huge global reach of the business.
Net income for the period rose in conjunction with the underlying growth in revenues, up from CHF 271 million in the corresponding period last year, to reach CHF 305 million, an increase of almost 14%.
Fragrance sales lead the way
Fragrance sales outperformed those in the flavours division, with like-for-like sales increasing by 4.8% to reach CHF 1.03 billion, a performance that was enhanced by the acquisition of the Soliance fragrance business earlier this year, which added approximately CHF 3 million to the total.
For fragrance compounds, which make up the vast majority of the revenues for the fragrance division, were up 4.4% on a like-for-like basis to CHF 905 million, but were down on a reported basis, against revenue of CHF 926 million for the same period last year.
The figure underlines the struggle the company has had in the face of an ever strong Swiss Franc, which has proved to be a stalwart for the financial investment world during the economic downturn, but has equally proved challenging for Swiss companies doing international business.
Fine Fragrances score high in Asia and North America
The biggest increase was seen in sales of fragrance ingredients, which were up by 7.6% on a like-for-like basis on the back of a strong performance in the Asian and North American markets.
Fine fragrances also performed well off the back of a strong performance in the Latin America market, with growth of 5% on a like-for-like basis during the period, while like-for like sales in the consumer products division rose by 4.2% on the back of a strong performance in developing markets.
For fragrance compounds, which make up the vast majority of the revenues for the fragrance division, were up 4.4% on a like-for-like basis to CHF 905 million, but were down on a reported basis, against revenue of CHF 926 million for the same period last year.
