Q1 sales increase 10.6% in local currencies
Givaudan has begun 2010 with a strong first quarter in both fragrances and flavours, recording sales of CHF1,066.4m, a strong increase of 10.6% in local currencies and 9.2% in Swiss francs. Sales in developing markets continued to show excellent momentum while momentum in mature markets continued to improve as it had in the second half of 2009.
Givaudan says the good performance in 2009 and the strong start to 2010 demonstrate its increased competitiveness fully at work to further expand its industry leadership.
This is the beginning of the last year of the Quest integration and the company says it is confident of achieving the announced savings target of CHF200m by the end of the year and reaching its pre-acquisition EBITDA margin level of 22.7%.
The fragrance division recorded sales of CHF495.7m, a growth of 14.3% in local currencies and 13.1% in Swiss francs, thanks to new wins with key customers and improved sales of existing products.
Total sales for fragrance compounds (fine fragrance and consumer products combined) increased 13.8% in local currencies and 12.7% in Swiss francs to CHF430.1m from CHF381.7m.
Fine fragrance sales grew by 26.9% in local currencies, with sales gains strongest in North America and Europe whilst the Latin American business continued to deliver growth, building strong gains last year. The consumer products business unit grew by 10.5% in local currencies.
Fragrance ingredient sales grew 18% on the first quarter of 2009 and Givaudan says sales volumes remained at the same good level seen in the second half of last year.