Givaudan has kicked off 2025 with a better-than-expected boost to sales, but warned that it will increase its prices.
The Swiss fragrance and flavour business said revenues rose 7.4% on a like-for-like basis to CHF1.98bn in the first quarter of the year, beating analyst expectations of a 6% increase.
Fragrance and beauty like-for-like sales rose 9.8% to CHF1bn, driven by fine fragrances growing 16.7% compared to the same three-month period last year.
Consumer products revenue was up 7.9%, with fragrance ingredients and active beauty increasing 7.7%.
Taste and wellbeing sales were up 5% to CHF 968m.
Givaudan noted in a statement that growth was achieved “across regions and customer groups, with particularly strong performance in the high growth markets and with local and regional customers”.
It said that due to higher input costs this year, including tariffs, it is “implementing price increases in collaboration with its customers to fully compensate for the increases in input costs”.
Givaudan CEO Gilles Andrier commented: “We are very pleased with the strong start to the year across business segments, customer groups and geographies, against very strong prior year comparables.
“With ongoing uncertainty in relation to global trade tariffs, we remain focused on our strategy and on delivering innovative solutions to help drive the growth of our customers.
“We will continue to ensure a high level of service and agility in navigating the challenges which the broader macroeconomic environment may present.”
The company reiterated its growth targets of 4% to 5% for the period 2021 to 2025.
Givaudan said it is “highly likely” to exceed this with average growth from 2021 to 2024 of 7.2%, in addition to first quarter growth in 2025 of 7.4%.
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