Givaudan passed the early stages of the crisis last year

The world leader in flavors and fragrances Givaudan has enjoyed rapid growth in the second year of the coronavirus. The activities that are affected by the disease are the ones that smell good. It is expected that the area will be expanded and the targets will be fixed.

Revenue stands at 821 million francs in 2021, up 10.5% year on year, the Verniolan company said on Friday. The board proposes to pay a share increased from 2 francs to 66 francs for each. In terms of revenue, profit and profit, the verniola company exceeded the level of risk in the 2019 financial year.

Also read: Givaudan puts AI in the spotlight

In its press release, Givaudan hailed the “good times” it had maintained, despite bottlenecks in the supply chain. The growth of income, in all price categories and in all areas, confirms the Geneva giant.

Turnover increased by 5.7% to 6.68 billion francs, with 3.09 billion (+5.8%) for the Perfumes segment and 3.59 billion (+5.7%) for Flavors. The growth of the company reached 7.1%, more than the 4.0% of 2020. The financial results are the reason for the negative effect of 78 million francs.

Numbers below comments

For the Fragrance & Beauty division, the Fine Fragrances business, which was severely affected by the outbreak of the virus, achieved a growth of more than 10%. For Flavors, a “gradual” recovery is seen for the Foodservices business, which continues to be affected by the crisis. Earnings before interest, taxes, depreciation and amortization (Ebitda) increased by 6.1% to 1.48 billion francs. Ebitda margin increased by 0.1 percent to 22.2%.

The annual figures published by the Geneva group fall within the lower bound of the AWP consensus forecasts. Only the growth exceeded expectations. Free cash flow was 843 million francs, compared to 811 million last year. This indicator, related to the search, fell by 0.2 percentage points to 12.6%.

For the fourth quarter alone, revenue rose 5.6% to 1.62 billion francs. The Perfumes category had a turnover of 740 million (+2.1%), compared to 878 million (+8.8%) for Flavors. The management has confirmed the medium-term objectives, namely organic growth between 4 and 5% per year and free cash flow to sales of 12%. Givaudan expects commodity prices to rise and has entered into negotiations with its customers to pass on these price increases.

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