Givaudan sales rise 5.8%

18 Apr 2016

In the first three months of 2016, Givaudan recorded sales of CHF1,152 million, an increase of 5.8% on a like for like basis, and 5.6% in Swiss francs compared to the previous year.

In the first three months of 2016, Givaudan recorded sales of CHF1,152 million, an increase of 5.8% on a like for like basis, and 5.6% in Swiss francs compared to the previous year.

Givaudan said it started the year with a good business momentum, whilst the project pipeline and win rates were sustained at a high level. This good growth was achieved against relatively low comparables in 2015.

The company says its 2020 ambition is to create further value through profitable, responsible growth. Capitalising on the success of the 2011-2015 strategy, Givaudan’s 2020 ambition is built on the three strategic pillars of growing with its customers; delivering with excellence; and partnering for shared success.

Ambitious financial targets are a fundamental part of Givaudan’s strategy, the company said. 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 its strategy cycle.

The Flavour Division reported sales of CHF591 million, a growth of 3.5% on a like-for-like basis and an increase of 3.4% in Swiss francs.

Despite what the company described as challenging economic conditions in the high growth markets of Africa and Eastern Europe, the Flavours Division achieved good growth. Sales were positively impacted by new wins and existing business expansion in the high growth markets of Argentina, Brazil, India and Indonesia coupled with strong performance in the mature markets of Japan, Korea and North America. Beverages, Snacks and Sweet Goods segments contributed to the overall expansion.

Sales for Asia Pacific grew 6.7% on a like-for-like basis. The high growth markets increased as a result of healthy new wins and moderate existing business growth in India, Indonesia and Thailand. The mature markets also showed strong growth contributed by new wins in North Asia, while Oceania was flat. Growth across all segments with strength coming from Beverages, Dairy, Snacks and Sweet Goods as a result of new wins and existing business growth.

Sales in Europe, Africa and the Middle East decreased 3.0% on a like-for-like basis. A challenging economic environment across the region contributed to the decline. The high growth markets of Africa were impacted by declines in the Sub-Saharan region while any gains in Eastern Europe were offset by decreases in Russia and Turkey. The mature markets of Western Europe exhibited lower sales in France, Germany and the UK.

Latin America increased 17.2% on a like-for-like basis with strong growth in Argentina, Brazil, Colombia and Uruguay, offset by lower sales in Mexico and continued economic challenges in Venezuela. New wins and existing business growth were realised across all segments with strong performance coming from the Beverages, Savoury and Snacks.

Sales in North America increased by 3.2% on a like-for-like basis. On the back of strong results in 2015, the region’s performance was attributed to double-digit growth in Dairy coupled with strong single-digit growth in Savoury and Snacks as a result of new wins and growth of the existing business.