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Givaudan (Vernier, Switzerland) has reported first half 2007 sales of CHF 2 billion, a rise of 36%, year-over-year. Results include the acquisition of Quest as of March 2, 2007. Due to added costs and higher taxes, the company's net profit dropped 68%.
Fragrance division sales jumped 49.8% to CHF 909 million, with particular strength in consumer products and good results in fine fragrance. In addition, specialty ingredients sales rose in double digit rates.
Flavor division sales grew by 26.8% to CHF 1.096 billion, particularly on the strength of growth in China, India and Indonesia. Argentina, Chile, Eastern Europe and the Middle East also experienced strong results. Sales were strongest in the beverage and dairy segments.
Moving forward, Givaudan expects streamlining activities and integration activities to result in a 2008 sales decline. However, these moves will eventually result in savings of CHF 200 million, allowing the company to reach pre-acquisition margin levels by 2010.