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Givaudan Q1 Sales Up 0.9% Despite Asia, Eastern Europe Slowdown

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Givaudan's first-quarter sales were CHF 1,091 million, an increase of 0.9% on a like-for-like basis, and 0.4% in Swiss francs compared to the previous year, despite a slowdown in the developing markets of Asia and Eastern Europe. 

Fragrance Division

  • The fragrance division recorded sales of CHF 519 million, a growth of 0.3% on a like-for-like basis and an increase of 0.7% in Swiss francs.
  • Total sales of fragrance compounds (fine fragrances and consumer products combined) increased by 0.5% on a like-for-like basis. In Swiss francs, sales of compounds decreased by 0.7 % to CHF 450 million.
  • Fine fragrance sales declined by 1.8% on a like-for-like basis against double-digit comparables of prior year.
  • Consumer product sales increased by 1.1% on a like-for-like basis with solid growth in developing countries more than offsetting lower sales in mature markets.
  • Sales of fragrance ingredients declined by 0.6% on a like-for-like basis compared to a solid prior year first quarter.

Flavor Division

  • The flavor division reported sales of CHF 572 million, a growth of 1.5% on a like-for-like basis and a slight increase of 0.1% in Swiss francs. Sales in North America increased by 6.2% on a like-for-like basis driven by double-digit growth in beverages and dairy.
  • Sales for Asia Pacific decreased 3.1% on a like-for-like basis against a strong double-digit comparable. The developing markets of India and Vietnam grew while China, Philippines and Thailand decreased.
  • Sales in Europe, Africa and the Middle East were flat on a like-for-like basis. The mature markets of Western Europe achieved a solid growth, offset by declines in the developing markets of Africa, the Middle East, Poland and Russia.
  • Latin America increased 7.6% on a like-for-like basis, versus high double-digit prior year comparables, with strong growth in Brazil and positive momentum in Mexico driving the growth.

Mid-term, the company's overall objective is to grow organically between 4.5% and 5.5% per year, assuming a market growth of 2-3%, and to continue on the path of market share gains.

Click here to view the entire earnings release.

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