Givaudan on track with targets as H1 sales increase

04-Aug-2010 - Last updated on 05-Aug-2010 at 10:25 GMT

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Givaudan has reported a strong first half performance, with results boosted by the successful integration of Quest International as well as continued growth in developing markets.

The Swiss flavour and fragrance firm achieved sales of CHF 2.2bn (1.6bn) for the first six months of the year, an increase of 10.5 per cent compared to the previous year.

Sales for the flavour division came in at CHF 1,182m (€856m) which marked an 8 per cent increase on last year. Sales in the fragrance division increased just over 13 per cent to reach CHF 1,017m (€736m).

“Givaudan is capitalising on its expanded leadership position resulting from the successful integration of Quest. This translates into numerous new wins and strong sales growth across all geographies and customers, as well as into significant profitability improvements. We are on track with our targets,” said Gilles Andrier, the firm’s CEO.

Developing markets accounted for 41 per cent of group sales, said the firm.

Flavours boosted by sweets, drinks and snacks

Givaudan reported that its Flavour Division grew across all regions, with a strong performance in the Sweet Goods, Beverage and Snacks segments helping to drive sales up.

Developing markets proved particularly successful for the firm in the past six months, with double-digit growth continuing the strong growth trends reported in the first quarter. Mature markets were driven by volume gains, particularly in North America.

On the applications side, one sector that helped boost results was Health and Wellness, said Givaudan.

Overall, the firm’s Flavour Division recorded operating income of CHF 214m (€155m), an increase of almost 40 per cent compared to CHF 153m (€111m) last year.

Fragrance sales supported by re-stocking

Total sales for Fragrance compounds (which include Fine Fragrances and Consumer Products) increased by almost 13 per cent to CHF 884m (€640m).

Results for fragrances were boosted by improved sales of existing products and a number of new wins with key customers, said the firm.

A 24 per cent growth in Fine Fragrances was partly driven by a number of successful recent launches, customers returning to order patterns seen before 2009 and some re-stocking in retail. Fragrance Ingredients sales also contributed to the division’s strong performance with a 16 per cent growth in all product categories with a certain degree of re-stocking.

Operating income for the division increased by 26 per cent to CHF 116m (€84m).