2020 Leaderboard: Givaudan Sets New Targets for Sales and Sustainability

Givaudan's financial strength was maintained in 2019 with total sales for the year reaching CHF 6,203 million, an increase of 5.8% over the previous year.
Givaudan's financial strength was maintained in 2019 with total sales for the year reaching CHF 6,203 million, an increase of 5.8% over the previous year.


Geneva, Switzerland

2019 Sales: CHF 6,203 million

Givaudan is now on the final lap of its five-year 2020 strategy and is expected to announce its next 2025 strategic cycle later this year.

Ambitious financial targets are a fundamental part of the strategy, with the company aiming to outpace the market with 4-5% sales growth and a free cash flow of 12-17% of sales, both measured as an average over the five-year period of the current strategy cycle. The Swiss-based leader in the global F&F industry is on course to achieve those 2020 ambitious targets, set five years ago, despite the challenges of the COVID-19 pandemic that have affected so much of the industry and beyond.

The company’s 2020 ambition is to create value through profitable, responsible growth which is defined around the strategic pillars of “Growing with customers.” “Delivering with excellence” and “Partnering for shared success.” As part of this, a notable feature has been Givaudan’s almost voracious appetite toward expanding its products portfolio through targeted acquisitions, thereby complementing its capabilities for the benefit of an enlarged set of clients, as well as creating value. Since 2014, the company has completed 16 acquisitions which represent an annualized revenue contribution of CHF 1.5 billion.

Industry observers will have noted a recent addition to the company’s approach, the Givaudan purpose, which is “Creating for happier, healthier lives with love for nature. Let’s imagine together”. Introduced in late 2019, the purpose defines goals for the company in the areas of creations, nature, people and communities. These include doubling its business through creations that contribute to happier, healthier lives by 2030, becoming climate positive before 2050, becoming a leading employer for inclusion before 2025 and sourcing all materials and services in a way that protects the environment and people by 2030. All this in addition to maintaining a profitable business. Givaudan’s purpose will be at the core of the 2025 strategy.

Gilles AndrierGilles Andrier

CEO, Givaudan

Business Momentum

Given the company’s financial strength in recent years, a positive answer to the question would seem justified. For FY2019, Givaudan’s sales were CHF 6,203 million, an increase of 5.8% on a like-for-like basis and 12.2% in Swiss francs when compared to 2018. Flavor division sales were CHF 3,404 million, an increase of 4.5% on a like-for-like basis and 13.4% in Swiss francs, while fragrance division sales were CHF 2,799 million, an increase of 7.3% on a like-for-like basis and 10.9% in Swiss francs.

The company ended the year with good business momentum and with its project pipeline and win rates sustained at high levels. The growth was seen across all product segments and geographies, with the strategic focus areas of naturals, health and well-being, active beauty, integrated solutions and local and regional customers delivering strong growth, complemented by recent acquisitions. “Our excellent performance in 2019 demonstrated the strength of our business and our ability to consistently deliver industry leading financial results, while also implementing our key strategic initiatives,” said CEO Gilles Andrier on the release of the results. “I feel confident that we will deliver against all of the strategic objectives that we defined under our 2020 strategy.”

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