Givaudan’s 2023 sales beat estimates thanks to price increases and strength in fine fragrance unit

26 Jan 2024 --- Givaudan beat sales estimates, with 2023 sales rising 4.1% to CHF 6.9 billion (US$8 billion). The company says price increases helped offset rising raw material costs, while its fragrance unit also showed strength amid a “challenging environment.”

The global flavor and fragrance provider reported growth across product segments and geographies and said high-growth markets saw a 10% increase compared to the previous year.  

Fragrances in lead
In the Fragrance & Beauty segment, sales rose 7.6% year-over-year to CHF 3,312 million (US$3.8 billion). 

Fine Fragrance sales surged 14%, driven by new business and volume growth. The company said it implemented price increases to offset rising input costs, resulting in overall sales growth and profitability.

Fine Fragrance sales surged 14% driven by new business and volume growth.Within the Fragrance & Beauty segment, Givaudan reports increased demand for Fine Fragrances and Consumer Products. The segment’s EBITDA increased to CHF 769 million (US$888 million) in 2023 compared to CHF 698 million (US$806 million) in 2022, while the EBITDA margin increased to 23.2% in 2023 from 21.4% in 2022. 

Sales in the Taste & Wellbeing segment also rose 1.1% year-over-year to CHF 3,603 million (US$4.2 billion). 

Givaudan retains commitments
Givaudan reiterates its commitment to purposeful growth, targeting 4% to 5% organic sales growth on a like-for-like basis. 

Its environmental sustainability goals include becoming climate-positive by 2050 and doubling business by 2030 through creations that promote “happier, healthier lives.”

“Our clearly defined strategic positioning and the proactive steps that we have taken to adapt to the broader environment have supported the achievement of these industry-leading results. We are well on course in all areas of our 2025 strategy, and we will remain focused on supporting the growth of our customers with innovative and differentiating solutions,” says Gilles Andrier, CEO at Givaudan.

Earlier this week, Procter & Gamble beat analyst estimates for earnings in its latest quarter despite a 34% drop in quarterly sales for its Japan-based skin care brand SK-II.

By Venya Patel