Givaudan (Geneva) has reported 2005 sales of CHF 2,778 million, an increase of 2.5 percent in local currencies and 3.6 percent in Swiss Francs compared with 2004. These results were impacted by the initiative to eliminate lower value-added ingredients in fragrances and flavors. The gross profit margin increased from 47.7 percent to 48.9 percent. Operating profit increased by 7 percent to CHF 513 million, while net profit rose 21 percent to CHF 406 million.
Fragrance: The fragrance division reported sales of CHF 1,131 million, an increase of 4.2 percent in local currencies and 5.4 percent in Swiss Francs. This performance was driven by the core business, fragrance compounds and specialty ingredients. The operating profit decreased to CHF 161 million from CHF 173 million in 2004.
Flavor: The flavor division reported sales of CHF 1,647 million, an increase of 1.3 percent in local currencies and 2.5 percent in Swiss Francs. Asia Pacific and Latin America showed above market growth. North America grew marginally, while Europe showed a small decline versus last year. Operating profit increased from CHF 310 million to CHF 352 million.