Givaudan reports sharp rise in Fragrance & Beauty amid overall strong financial growth in 2021

12 Oct 2021 --- Givaudan is reporting significant sales increase in its Fragrance & Beauty segment for the first three quarters of 2021, despite COVID-19 complications. The company is seeing strong sales performance across multiple segments with Taste & Wellbeing also showing positive results and ranking second in growth.

“I am very happy with our continued strong performance across all parts of our business and in particular the ongoing recovery in Fine Fragrances, Active Beauty and in foodservice,” says CEO, Gilles Andrier. 

“We have made progress in our 2025 strategic growth initiatives despite the external environment which still contains many uncertainties. We have demonstrated a strong focus on execution, in supporting our customers and in playing an important role in the global supply chain in food and beverage as well as in household, health and personal care products.”

Fine fragrances and active beauty rise
Overall, in the first nine months of 2021 Givaudan recorded sales of CHF 5,067 million (US$5.46 million), an increase of 7.7% on a like-for-like basis and 5.8% in Swiss francs.

The Fragrance & Beauty segment was supported by a continuation of the good performance from Fine Fragrances and Active Beauty.For Fragrance & Beauty sales reached CHF 2,351 million (US$2.534 million), an increase of 8.4% on a like-for-like basis and an increase of 6.9% in Swiss francs.

In Fragrance & Beauty there was a continuation of the good performance from Fine Fragrances and Active Beauty, with both segments having already shown a strong improvement in the first half of 2021.

This was supported by retail activity being picked up as COVID-19 restrictions eased up and as customers and consumers maximized the availability of other channels, including direct selling and e-commerce. 

Overall growth
Givaudan sustained good business momentum whilst maintaining its operations and global supply chain at a high level. 

The strong growth was achieved across all product segments and geographies, with the mature markets growing at 6.6% and the high growth markets at 9.2% on a like-for-like basis, the company says.

Taste & Wellbeing sales were CHF 2,716 million, (US$2.9 million) an increase of 7.2% on a like-for-like basis and an increase of 4.8% in Swiss francs.

In Taste & Wellbeing the foodservice segment, whilst still being impacted by the COVID-19 pandemic, experienced a continuation of the strong recovery. 

This came in the second quarter of the year, as restrictions in relation to out-of-home food and beverage consumption continued to ease in certain markets.

Acquiring DDW
Givaudan also announced that it is acquiring DDW, The Color House, a US based natural color company.

The acquisition will enable Givaudan to further boost its reach within natural colors. The terms of the deal have not been disclosed and Givaudan plans to debt fund the transaction. 

In the first nine months of 2021 Givaudan reports US$5.46 million in sales, an increase of 7.7% on a like-for-like basis.DDW’s business would have represented approximately US$140 million of incremental sales to Givaudan’s results in 2020 on a proforma basis. The transaction is expected to close in Q4 2021.

Givaudan’s 2025 strategy
Givaudan says it continues to be strongly focused on its 2025 guidance called “Committed to Growth, with Purpose.”

Givaudan’s 2025 strategy places customers at the heart of its business, supporting them to grow.

The 2025 strategy is focused around three growth drivers: expand the portfolio, extend customer reach and focused market strategies. 

It is supported by four growth enablers, which are aligned with the company’s purpose domains, namely creations, nature, people and communities. 

Ambitious targets are an integral part of Givaudan’s 2025 strategy, with the company aiming to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow of at least 12%, both measured as an average over the five-year period strategy cycle. 

In addition, the company aims to deliver on key non-financial targets around sustainability, diversity and safety, linked to Givaudan’s purpose.

By Kristiana Lalou