Givaudan 2007 Results; Seamless Integration

Givaudan (Vernier, Switzerland) has reported full year 2007 sales of CHF 4.13 billion, an increase of 42.2% in local currencies and 42.0% in Swiss francs. This reflects the inclusion of Quest sales as of March 2007.

Fragrance division sales grew by 54.9% in local currencies to CHF 1.9 billion. The growth was based on the good performance of the consumer products business unit in all regions and the strong sales growth of specialty ingredients. Fine fragrance sales declined slightly against strong comparables in 2006. 

Flavor division sales grew by 33.0% in local currencies to reach CHF 2.23 billion. The streamlining of commodity ingredients impacted sales by CHF 52 million, which includes the closure of the US-based New Milford site. Sales in Asia Pacific, Eastern Europe, Middle East and Africa experienced double-digit growth, while Japan and the mature markets in Europe saw strong growth. Additionally, there was strong momentum in snacks, seasonings and beverages. 

Net profit after tax for the full year 2007 declined to CHF 94 million from CHF 412 million, impacted by CHF 328 million of integration costs and amortization of acquisition related intangible assets as well as a one-off, non cash tax adjustment of CHF 28 million. 

Integration of Quest: Givaudan saved CHF 50 million by integrating the Quest International business ahead of plans and without incurring any significant business disruptions.

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