Givaudan presents “solid performance” in half-year financial results boosted by fine fragrances

20 Jul 2023 --- Givaudan, the Fragrance and Beauty, Taste and Well-being business, has released its half-year results. Overall sales are at CHF3,535 million (US$4,119 million), an increase of 2.4% on a like-for-like (LFL) basis and a decrease of 3.2% in Swiss francs.

Fragrance & Beauty sales were CHF1,672 million (US$1,948 million), an increase of 6.4% LFL and 1.6% in Swiss francs. Taste & Wellbeing segment sales were CHF1,863 million (US$2,171 million), a decrease of 0.9% LFL and 7.1% in Swiss francs.

“We are pleased with our solid performance in the first half of 2023, with a particularly strong performance in Fine Fragrances, high growth markets and Europe,” says Gilles Andrier, CEO at Givaudan.

“In an environment where we are still facing ongoing challenges in some key markets and business segments, I am very happy with our delivery against our performance improvement plan objectives, as well as our continued strong focus on supporting the growth of our customers around the world.”

Furthermore, Givaudan shares that it has been rated ‘A’ by the international non-profit CDP for its global leadership in engaging its supply chain on climate.Taste & Wellbeing segment sales were CHF 1,863 million (US$2,171 million).

Robust fragrances
Givuadan explains that the excellent growth was driven by a “strong” performance of Fine Fragrances. Also, new businesses were sustained on a high level. 

Its Fine Fragrance unit saw a sales increase of 16.2% LFL against a high comparable growth of 17.9% the year before. 

“Consumer Products sales increased by 3.7% LFL, and sales of Fragrance Ingredients and Active Beauty increased by 4.4% LFL,” shares the company.

In addition, the company attributes the growth to price increases across all businesses.

“The EBITDA of Fragrance & Beauty increased to CHF383 million [US$446 million] in 2023 compared to CHF362 million [US$422 million] for the first six months of 2022,” shares the company.

Previously, Givaudan described its first quarter as a “solid start to the year.” Fragrance & Beauty led the company toward a growing sales performance, up 6.8%, spearheaded by its Fine Fragrances business unit, which grew 20.9% in Q1.

Snacks experience double-digit growth
Givuadan notes that snacks had strong double-digit growth, and sweets maintained good momentum. However, weaker volumes in other segments resulted in reduced sales compared to the same period last year.Fragrance & Beauty sales were CHF 1,672 million (US$1,948 million).

“On a regional basis, sales in Asia Pacific decreased by 5.0% LFL,” shares Givaudan. “In South Asia, Africa and the Middle East, sales increased by 19.1% LFL.”

“In Europe, sales increased by 3.6% LFL; in North America, sales decreased by 11.7% LFL, and in Latin America, sales increased by 10.5% LFL.”

The EBITDA of Taste & Wellbeing decreased to CHF380 million [US$443 million] from CHF454 million [US$523 million] in 2022. 

Overall, the company’s net income is CHF449 million (US$523 million), an increase of 9.0% in local currency terms.

Implementing price increases
Solid growth was achieved across product segments and geographies, with the high-growth markets growing at 8.9% and the mature markets declining by 2.6% LFL.

“With sustained higher input costs in 2023, the company continues to implement price increases in collaboration with its customers to fully compensate for the increases in input costs,” shares Givaudan.

Givuadan’s 2025 strategy is to deliver growth in partnership with existing customers by creating inspiring products that are healthier and have a positive impact on nature, people and communities.

By Venya Patel