27. April 2021
Daniel Pfund, Senior Financial Analyst
In the first three months of the year, Givaudan posted a sales growth of 3.4% to CHF 1,674 million. On a comparable basis, i.e. at the same exchange rate as last year and excluding revenues from companies acquired in the last 12 months, sales increased by 7.7%.
This better-than-expected growth was driven by the “fragrances and beauty” division, which increased its sales by 9.9% on a comparable basis. The other division, Taste and Wellness, grew by 5.8% on a comparable basis. Givaudan’s customers recorded strong sales growth in the “HPC” segment, i.e. all cleanliness products for the home, body and health. In flavours, growth was mainly driven by snacks, packaged foods and beverages. Geographically, emerging markets were the main growth drivers. COVID continues to impact the Taste and Wellness division, but to a much lesser extent than last year, following the relaxation of closure measures in certain markets.
For the next 5 years, Givaudan targets organic growth of 4-5% per annum and a Free Cash Flow of at least 12% of sales.