Givaudan’s Fragrance & Beauty growth offsets weaker first-half profits

Givaudan’s 2026 half-year financial results show sustained performance driven by Fragrance & Beauty. However, the growth was mitigated by a weaker performance in Taste & Wellbeing, outlying legal costs, the volatile macroeconomic landscape, and the strong Swiss franc.

The flavors and fragrances manufacturer’s half-year report indicates a tumultuous fiscal year so far, struggling to maintain revenue, profit, and cash flow despite its sturdy underlying sales growth. The financials were primarily supported by personal care, as Fragrance carried the company through Q1 and Q2. Givaudan has said that it is implementing price increases to offset the higher input costs in 2026.

”We are pleased with our sustained solid financial performance in the first half of 2026. Despite ongoing geopolitical and macroeconomic challenges, our business continued to display good growth momentum and industry-leading profitability,” says Givaudan CEO, Christian Stammkoetter.

“Once again, we see the strength of the natural hedges of the group and the impact of the strong focus of the entire organization in supporting the growth of our customers.”

Net income dive and sliding stocks

Sales cashed in at CHF 3.799 million (US$4.66 million), increasing 3.6% on a like-for-like (LFL) basis, but saw a decrease of 1.7% in CHF. Fragrance & Beauty continued its momentum with 6.5% LFL growth, and Taste & Wellbeing saw a modest increase of 0.5% LFL.

The company reports balanced growth across geographies and customer groups. High-growth markets grew 5.2% LFL, compared to a strong comparable of 10% LFL in the first half of 2025. Mature markets grew by 2% LFL in comparison to 2.9% in the prior year period.Givaudan's beauty division remained resilient in a challenging market. 

Profitability weakened as the adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) declined 5.2% to CHF 923 million (US$1.13 billion). The adjusted EBITDA margin narrowed from 25.2% to 24.3%. Reported EBITDA fell 13.3% to CHF 820 million (US$1 billion).

Exceptional legal expenses weighed on the report with costs of CHF 103 million (US$126.36 million), primarily attributed to litigation settlements and provisions.

Net income declined 19.8% to CHF 475 million (US$582.71 million), while the net profit margin fell from 15.3% to 12.5%. Adjusted earnings per share decreased 9.7% to CHF 60.25 (US$73,91).

Following the release of the half-year results today, Givaudan’s stock has slid 6% at the time of publication, following the drop in net income, despite beating Q2 expectations.

Fragrance & Beauty performance and future moves

Despite the rocky report, personal care has remained the buttress of Givaudan’s 2026 financials in 2026, as it did in its FY2025 financial report. Fragrance & Beauty sales cashed in at CHF 2.01 billion (US$2.47 billion), an increase of 6.5% LFL and 2.9% in CHF.

While fragrances performed better than Givaudan’s food division, 2026’s performance was not as strong as the prior year. On a business unit basis, Fine Fragrance sales increased 7.3% against last year’s 18%. Sales of Fragrance Ingredients and Active Beauty decreased by 4.1% LFL, compared to 5.7% growth in the first half of 2025. Consumer Products did see an uptick as sales increased by 9.2%, against a comparable growth of 6.1% in the prior year. 

Givaudan will also continue to pursue strategic acquisition opportunities that align with its focus areas.Fine fragrances and consumer products supported Givaudan's performance. 

Last month, the company announced its majority stake acquisition in Eurofragance to bolster its fine fragrance position. The deal aligns with its 2030 strategy, aiming to expand its presence and capabilities across local and regional markets to drive sustained business growth.

The company said the move strengthens its leadership in high-growth markets by using Eurofragance’s strong regional footprint and global leadership and capabilities. The collaboration aims to enable both companies to bring unique, locally relevant fragrance experiences to consumers worldwide.

In the recent financial report, Givaudan maintains its five-year ambitions of 4–6% average LFL sales growth and adjusted free cash flow above 12%.

It also reiterates its 2030 purpose goals in the areas of nature, people, and communities, including sourcing all materials and services in a way that protects the environment and people by 2030. Givaudan’s 2025 report showed that 87% of the company’s natural ingredients portfolio was sourced responsibly, up from 85% in 2024.

The group also hit its 2025 target of fully converting its electricity supply to renewable sources back in 2024, creating space to further advance its environmental, social, and governance targets.