SWITZERLAND – The Swiss flavors and fragrances company, Givaudan has recorded sales of US$1.52 million, a 6.3% increase compared to the previous year boosted by the flavors division.
In the first three months of 2019, good growth was achieved across all product segments and geographies while the flavors division reported an increase of 4.3%.
The period was characterized by price increases, resulting to implementation of price increases in various product categories.
Givaudan has identified Naturals, Health and well-being; Integrated solutions as some of the key strategic focus areas during the period.
Looking forward, the company aims to create further value through profitable, responsible growth in line with its 2020 ambition defined around the three strategic pillars of ‘Growing with our customers’, ‘Delivering with excellence’ and ‘Partnering for shared success’.
As part of the Company’s 2020 strategy, Givaudan also seeks to create value through targeted acquisitions, which complement existing capabilities in providing winning solutions for customers.
Since 2014 Givaudan has announced nine acquisitions including a 40.5% stake in the French specialty ingredients company Naturex.
The Flavour Division reported sales of CHF 848 million (US4849 million), a growth of 4.3% with Centroflora Nutra, acquired in May 2018 contributing US$111.14 million.
“Ambitious financial targets are a fundamental part of Givaudan’s strategy. We aim 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 our strategy cycle.
“It is Givaudan’s intention to maintain its current dividend practice as part of this ambition,” said the company.
Health and well-being category posted double-digit growth, the Naturals saw single-digit growth while Beverages, Snacks, Savoury and Sweet Goods all contributed to the positive sales performance.
India, Thailand delivered single-digit growth while mature markets, Japan and Korea delivered a solid sales performance.
The Flavor Division recorded 2.7% increase in sales in Europe, Africa and the Middle East.
In the high growth markets of Russia, Poland, Egypt, Maghreb and South Africa excellent business momentum was experienced, which was partially offset by challenging market conditions in Turkey, the Middle East and Nigeria.
The growth was mainly achieved in the segments of Beverages, Snacks and Sweet Goods.
Fragrance Division sales were US$677 million, an increase of 8.7% on a like-for-like basis.