In the first nine months of 2017 Givaudan recorded sales of CHF3,757 million, an increase of 3.5% on a like-for-like basis and 6.8% in Swiss francs compared to the previous year.
In the first nine months of 2017 Givaudan recorded sales of CHF3,757 million, an increase of 3.5% on a like-for-like basis and 6.8% in Swiss francs compared to the previous year.Fragrance Division sales were CHF 1,740 million, an increase of 2.2% on a like-for-like basis and an increase of 2.5% in Swiss Francs.Flavour Division sales were CHF 2,017 million, an increase of 4.7% on a like-for-like basis and an increase of 10.9% in Swiss Francs.Givaudan says it continued the year with good business momentum and with the project pipeline and win rates sustained at a high level. This good growth was achieved against strong prior year comparables for the same period in 2016, particularly in the first six months and in the Fragrance Division. The company says it continues to successfully implement price increases in collaboration with its customers to compensate the increases in input costs.Givaudan reaffirmed its 2020 ambition to create further value through profitable, responsible growth. Building on the first year of this strategic cycle in 2016, Givaudan’s 2020 ambition is built on the three strategic pillars of growing with its customers; delivering with excellence; and partnering for shared success. During the three months to 30 September 2017, the company closed the acquisition of Vika and announced the acquisition of the Nutrition Division of the Centroflora Group (Centroflora Nutra), both of which it says are are fully aligned with the 2020 strategy.Ambitious financial targets are a fundamental part of Givaudan’s strategy, the company says. It aims to outpace the market with 4-5% sales growth and a free cash flow of 12-17% of sales, both measured as an average over the five-year period of the strategy cycle. It is Givaudan’s intention to maintain its current dividend practice as part of this ambition.The Flavour Division reported sales of CHF 2,017 million, a growth of 4.7% on a like-for-like basis and an increase of 10.9% in Swiss Francs. Including all acquisitions for the comparable period the growth was 12.5% in local currency.The sales performance was driven by new wins and strong business expansion in North America, Europe, Middle East and Africa.Asia Pacific grew whilst Latin America experienced a decline compared to 2016, against strong comparables, largely driven by challenging market conditions in Brazil.From a segment perspective, Dairy, Savoury and Beverages all contributed to the positive sales development.