Strong Fragrance Compounds performance compensates for sliding Fragrance Ingredients sales
Swiss flavours and fragrances specialist Givaudan has announced sales of nearly CHF4.3bn in 2012, a 6.6% rise on 2011 in local currencies and 8.7% in Swiss francs. EBITDA increased by 14.8% to CHF870m from CHF758m in 2011 but improvement in EBITDA was hampered by costs associated with the start up of Givaudan’s new manufacturing facility in Makó, Hungary, according to the company.
Sales growth figures were driven by Givaudan’s Fragrance Division, which recorded sales of just over CHF2bn, an increase of 8.4% in local currencies. The Flavour Division, meanwhile, reported sales of CHF2.2bn, up 5% year on year.
Within the Fragrance Division, Fragrance Compounds (comprising Givaudan’s Fine Fragrances and Consumer Products businesses) recorded a strong performance. Sales increased 10.3% to CHF1.8bn, with Fine Fragrances sales up 4.2%, buoyed by a strong performance in developing markets and in Europe, and Consumer Products sales up 12.1%, thanks to important new wins, a soft erosion rate on existing businesses and price increases. Growth in Fragrance Compounds helped counter the negative impact of Givaudan’s Fragrance Ingredients business, which saw sales decrease by 3.9% in 2012, driven by lower sales volumes in commodities.
Givaudan intends to focus on its five pillar growth strategy – developing markets, health and wellness, market share gains with targeted customers and segments, research and sustainable sourcing – to achieve its objective of growing organically between 4.5% and 5.5% per annum.