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Givaudan (Geneva) has reported first quarter 2008 sales of CHF 1.05 billion, an increase of 27.2% in local currencies and 18.3% in Swiss francs. The Fragrance division recorded sales of CHF 489.1 million, an increase of 30.6% in local currencies. Fine fragrance sales declined compared to prior year’s strong first quarter. The European and North American markets suffered during the year-end holiday season, resulting in a decline due to the high inventory levels. Fragrance ingredients recorded sales below prior year due to the CHF 3.3 million impact of the discontinued commodity ingredients. Specialties continued to grow at a double digit rate.
The Flavor division recorded sales of CHF 563.7 million, an increase of 24.3% in local currencies. Sales in Asia Pacific showed solid growth with Thailand, Indonesia, Philippines and India delivering double digit growth. European sales delivered strong growth, with dairy and savory showing double digit growth. Sales in North America reported mid-single digit performance, while Latin American sales were weak against strong prior year comparables.
For 2008, Givaudan expects to grow its sales in line with the market when excluding the impact of the announced CHF 114 million of portfolio streamlining and business divestiture. Givaudan confirms that it is on track to generate the expected CHF 200 million integration synergies and to reach pre-acquisition margin levels by 2010. CHF 130 million of integration synergies are expected to be achieved in 2008.