Fragrance leads the way for Givaudan in third quarter

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Fragrance sales for the Switzerland-based fragrance and flavours giant showed strong growth on the back of new wins and improved sales of existing products.

For the first nine months of the year, the company’s fragrance division (including fine fragrance, consumer products and fragrance ingredients) were up 12 per cent in local currencies and 10.9 per cent in Swiss francs, compared to last year’s figures.

Reaching sales of CHF 1,539m, the company said the division had benefited from new wins with key customers as well as improved sales on existing products.

Third quarter sales growth came in at 9.6 per cent in local currencies and 6.8 per cent in Swiss francs for the fragrance division as a whole, from a total of CHF 522m in sales for the period.

Fine fragrance

According to the company, re-stocking and normalised order patterns had a positive impact on the fine fragrance sector earlier in the year, which helped drive the 20.7 per cent increase in sales for the nine month period, when compared to the previous year.

Third quarter sales were driven by new wins and solid volume gains, the company said, and Europe and North America were the strongest regions.

Sales of fragrance ingredients similarly benefited from a certain amount of restocking as well as an ‘overall high level of demand’ and growth for the nine month period was 12.6 per cent in local currencies when compared with last year.

The consumer products division also grew over the nine months, and the company was keen to underline that the comparison was against positive performance last year. Air care and fabric categories were the strongest in the sector, the company said.

Overall company performance

The performance of the fragrance division slightly outpaced overall sales growth for the first nine months (including the flavours division) which stood at 9.8 per cent in local currencies, translating to 8.5 per cent in Swiss francs, with sales for the period coming in at CHF 3,283m.

Looking to the future, the company said it expected a good performance and said it was confident of achieving the full year objectives of sales growth above 5 per cent in local currencies.

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