Givaudan reports US$5.5B sales growth accelerated by fragrance and beauty
11 Oct 2022 --- In an operating environment which continues to be challenging, Givaudan has sustained a good business momentum while maintaining its activities and global supply chain at a high level, notes the company in its 2022 nine month sales report. As a result, Givaudan reported an overall sales increase of 6.1%.
In the first nine months of 2022, Givaudan recorded sales of CHF 5,458 million (US$ 5.46 billion), of which, Fragrance & Beauty sales were at CHF 2,489 million (US$ 2.48 billion). Taste & Wellbeing accounted for CHF 2,969 million (US$2.97 billion), an increase of 6.4%. However, its flavor business in North America fell by 2.8%.
With higher input costs in 2022, the company insists that it’s fully on track in implementing price increases in collaboration with its customers to fully compensate for the increases in input costs.
“We are very pleased with our sustained solid growth across all of our businesses in what remains to be a challenging environment. We have demonstrated our strong focus on execution, in supporting the growth of our customers, whilst also leveraging our innovation capabilities to introduce new solutions which further strengthen our market leadership position in our chosen markets,” says Gilles Andrier, CEO at Givaudan.
The company says its long-term goals fall within four domains: creations, nature, people and communities – a reflection of its 2025 strategy, ‘Committed to Growth, with Purpose.’
According to the nine month sales report, on a business unit basis, fine fragrance sales increased by 14.8%.Fragrance leads beauty sales
Fine fragrance sales increased by 14.8% and consumer products sales increased by 2.2% on an LFL basis. Sales of fragrance ingredients and active beauty increased by 10.2%.
The “good growth” of Fragrance & Beauty was reported to be driven by the strong performance of fine fragrances and fragrance ingredients in combination with the sustained return to good growth momentum in the consumer products business.”
The company’s growth and focus in fragrances have been observed in partnership with LanzaTech, to develop environmentally sustainable fragrance ingredients from renewable carbon, using synthetic biology.
Moreover, Givaudan is also training Egyptian farmers in sustainably growing jasmine flowers, an ingredient used in perfumery.
In active beauty, the single-digit growth was achieved against a high double-digit comparable growth in 2021.
Givaudan Active Beauty recently launched a radish-based cosmetic pigment, New Purple 2364, which is an environmentally sustainable vegan alternative to synthetic pigments and was developed in the shade purple after consumer studies revealed that 88% of 110 women considered it a “trendy shade.”
In the first nine months of 2022 Givaudan recorded sales of CHF 5,458 million.
Uptick for sales
Being a market driver in flavors and taste, Givaudan’s Taste & Wellbeing portfolio of products includes flavors, taste, functional and nutritional solutions.
The company reports on a regional basis where sales in the Asia Pacific increased by 4.2%, despite being impacted by the ongoing COVID-19 measures in China.
Moreover, sales in Europe increased by 12.5%, whereas it increased by 16.6% in South Asia, Africa and the Middle East and 17.1% in Latin America.
Recently, Givaudan released its latest white paper titled “The Protein Horizon: the landscape of alternative protein technologies enabling future food experiences,” delving into the plant-based future, highlighting the benefits of emerging 3D printing technology for cultured meat.
Edited by Radhika Sikaria
