Givaudan results hit hard by a strong Swiss Franc
The Switzerland-based company announced that Swiss Franc sales for the period were down by 10.9 per cent to CHF966m, a figure that registered an increase of 5.4 per cent in local currency, reflecting the strength of the Swiss currency against most international currencies.
For the first nine months of the year, group sales were down by 9.5 per cent to CHF2.95bn, an increase of 4.7 per cent in local currency, reflecting the strength of the Swiss currency against most international currencies.
The fragrance and flavours giant said that in answer to the big dent in its sales it is implementing a series of price increases, a policy that is expected to counterbalance half of the increased input costs by the end of financial year 2011 and the rest during the course of 2012.
Full project pipeline should help turn around
Additionally, the company anticipates that high level win rates will be sustained for the rest of 2011 and in to 2012 thanks to a full project pipeline.
“Mid-term, the overall objective is to grow organically between 4.5 per cent and 5.5 per cent per annum, assuming a market growth of 2-3%, and to continue on the path of market share gains over the next five years,” the company said in a trading statement.
Breaking the sales figures down by business division, sales for the third quarter for fragrance fell by 10.4 per cent to CHF468m, an increase of 5.3 per cent in local currencies, whereas sales for the flavour division fell by 11.3 per cent to CHF498m, an increase of 5.5 per cent in local currencies.
Fragrance division driven ingredients and consumer products
For the first nine months of the year the fragrance division sales fell by 9.4 per cent to CHF1.54bn, an increase of 4.4 per cent in local currencies, whereas sales for the flavour division fell by 9.6 per cent to CHF1.74bn, an increase of 5.0 per cent in local currencies.
In the fragrance division the figures for the first nine months of the year showed that the fine fragrance division was the most disappointing area, growing by just 1.3 per cent on account of lower than expected sales in the European market.
Sales for consumer products were strong during the period, growing by 5.1 per cent in local currencies on account of strong sales in all regions, including mature and developing markets, while sales in fragrance compounds grew by 4.2 per cent in local currencies.
Sales of fragrance ingredients grew by the fastest rate, at 5.3 per cent in local currencies, driven mainly by double-digit growth in developing markets.
The company also noted that the launch of its new fragrance ingredient Paradisamide, which is said to have a tropical perfume and can be used in both fine fragrances and skin, has contributed to higher sales in the division since its launch earlier in the year.