Givaudan SA’s (Geneva) total sales for the first nine months of 2012 rose 6.1% in local currencies and 8.8% in Swiss francs, as declines in fragrance ingredient sales were offset by gains in fragrance compounds and a globally strong flavor division.
For the period of January through September 2012, Givaudan’s sales totaled CHF 3,231 million, compared to CHF 2,971 million a year ago.
Third-quarter sales for the three months ended September 2012 were CHF 1,105 million, up 4.6% in local currencies and 14.4% in Swiss francs. For the quarter, fragrance division sales were CHF 539 million, up 6.3% in local currencies or 15.2% in Swiss francs. Third-quarter flavor division sales were CHF 566 million, up 3% in local currencies or 13.6% in Swiss francs.
Givaudan said its overall objective is to grow organically between 4.5% and 5.5% per year, assuming a market growth of 2–3%, while continuing on the path of market share gains.
Flavor division sales were CHF 1,698 million for the nine-month period, up 4.8% in local currencies and 7.7% in Swiss francs over the same period in 2011. The flavor division expanded globally in all segments with strong performances in beverage, sweet goods and snacks.
For the flavor division, Asia-Pacific sales jumped 4.6% in local currencies during the nine-month period, with particularly strong performances in Indonesia and Thailand. New wins across major markets fueled the growth in beverages, savory and snacks. Sales in Europe, Africa and the Middle East rose 3.5% in local currencies led by Africa and Eastern Europe, and all segments grew except savory. North America sales rose 3.4% in local currencies and all segments grew with the exception of dairy. Latin America sales rose 12.9% in local currencies. Argentina and Mexico saw double digit growth; Brazil also experienced strong growth.
Meanwhile, total fragrance division sales were CHF 1,533 million for the nine-month period, up 7.6% in local currencies and 9.9% in Swiss francs, mainly due to double-digit performance in consumer products.
Sales of fragrance compounds (fine fragrances and consumer products combined) climbed 9.7% in local currencies and 12.1% in Swiss francs to CHF 1,348 million. Fine fragrance sales inched up 0.6% in local currencies, driven by strong growth in the developing markets, particularly Latin America. New product launches were at a slightly lower level in the discrete quarter when compared to the high level of new launches in the prior year, particularly in North America.
Sales of fragrance ingredients fell 5.7% in local currencies in the first nine months of the year, following a lower market demand, mainly in Europe and North America. For the first nine months of the year, growth has been driven by specialties, which showed strong growth in all regions, particularly in Asia- Pacific and Latin America, offset by lower demand for commodities.