Givaudan Q3, Nine-month 2010 Sales

Givaudan (Geneva) has reported sales of CHF 3,283 million for the first nine months of 2010, a gain of 9.8% year-over-year; for the third quarter, the company reported sales of CHF 1,084 million, a gain of 5.2%. Sales were boosted by "excellent momentum" in developing markets and returning strength in mature markets, according to the company. Givaudan expects continued good performance through the fourth quarter, resulting in a sales growth above 5% in local currencies and an EBITDA margin equivalent to the pre-Quest acquisition. Moving forward, the company expects to grow organically between 4.5% and 5.5% per year.


Fragrance sales for the first nine months and the third quarter of 2010 totaled CHF 1,539 million (up 10.9%) and CHF 522 million (up 6.8%), respectively. Results were driven by new wins with key customers and improved sales of existing products.

Fine fragrance grew 20.7% in local currencies for the first nine months of 2010, led by new wins, normalized customer order patterns and restocking earlier in the year. Europe, North America and Latin America showed continued strength.

Across all customer segments, the consumer products business grew 9.4% in local currencies in the first nine months. Developing markets generated double-digit growth while developed markets reported positive growth. Asia-Pacific—particularly India, Thailand and China—sales rose in the double digits across all customers groups and all product segments. Fabric care sales and the markets of Argentina, Mexico and Venezuela boosted Latin American growth. Local and regional customer sales, as well as international customer sales, showed double-digit growth. Europe, Africa and the Middle East reported an increase year-over-year among all customer groups, boosted by the developing markets of Central and Eastern Europe, Africa and the Middle East, as well as growth in the mature markets. North America posted a double-digit growth, led by sales in the air care category and international customers. All product segment sales were above prior year levels. Sales in home and fabric categories reported double-digit growth.

Fragrance ingredient sales grew by 12.6% in local currencies, boosted by a high level of demand, particularly for specialties. Sales growth includes some restocking.


Flavor division sales for the first nine months and third quarter of 2010 totaled CHF 1,744 million (up 6.5%) and CHF 562 million (up 3.8%), respectively. Results were driven by all four regions and all major segments, particularly beverage, snacks and sweet goods. Developing markets accounted for nearly 40% of sales, while mature markets were driven by volume gains in existing products and new wins. Sales for Asia-Pacific increased by 9.3% in local currencies; China, Indonesia and India recorded strong growth in the beverage, snack and sweet goods segments. All segments contributed to gains in mature markets, particularly in Japan. Givaudan has also reported sales gains in Europe of 4.8% in local currency. New wins in Africa and Middle East and improved economic environment in Eastern Europe also contributed to positive results. Negatively impacting mature markets were Ireland, Great Britain and Northern Europe. North American results (up 8.1% in local currencies) were boosted by new wins in beverage, dairy and sweet goods. The double-digit growth for the quarter was the result of the strong growth of existing products and new wins. Latin American sales have grown 16.9% for the first nine months of the year. All markets are above last year, led by Brazil and Argentina. Growth has occurred across all segments, particularly in beverage, dairy and sweet goods.




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