Sales rise 4.3% for Givaudan in H1
But raw material cost increases hit profitability
Swiss flavour and fragrance company Givaudan has announced sales of CHF 2,005m for the first half of 2011, an increase in local currencies of 4.3% and a decline of 8.8% in Swiss francs compared to the same period of 2010. Meanwhile, earnings before interest, tax, depreciation and amortisation declined to CHF 368m from CHF 490m, adversely impacted by the continued strengthening of the Swiss franc against all currencies – particularly the US dollar – as well as increasing raw material costs.
“In the first half year 2011 we achieved a local currency growth of 4.3% in line with our mid term guidance,” commented ceo Gilles Andrier. “Raw material cost increases have affected our profitability. Givaudan has successfully implemented price increases in collaboration with its customers. These price increases started to become effective in the course of the second quarter.”
The company’s fragrance division achieved sales of CHF 927m in the first six months of 2011, an increase of 3.9% in local currencies, driven by a strong performance in the consumer products business unit (up 4.7%) especially in Asia Pacific and Latin America. Fine fragrance sales were down 0.4% due to strong comparables in the first half of the previous year, when the business enjoyed a double-digit rise in sales. Fragrance ingredients, meanwhile, grew 6.8% in local currencies as both the speciality and commodity ingredients sectors delivered a good performance.
Givaudan says it aims to grow organically between 4.5% and 5.5% per annum over the next five years.