Givaudan has reported that sales for the first nine months of 2018 reached CHF 4,073 million, an increase of 5.7% on a like-for-like basis and 8.4% in Swiss francs.
In the first nine months of 2018, Givaudan has experienced growth across all its major divisions. Per the quarter, the company saw Q3 sales reach CHF 1,399, an increase of 5.7% on a like-for-like basis and a 9.8% increase in Swiss francs from 2017 numbers. The company’s fragrance division saw sales reach CHF 1,878 million, an increase of 6.6% on a like-for-like basis and an increase of 7.9% in Swiss francs. Growth was also strong in its flavor division, which saw sales reach CHF 2,195 million, an increase of 4.8% on a like-for-like basis and an increase of 8.8% in Swiss francs.
Fine Fragrance Leads the Way
In the fragrance division, total sales of fragrance compounds reached CHF 1,633 million, an increased of 7.8% from CHF 1,515 million in 2017. Growth in the segment was complimented by the addition of CHF 27 million in sales from the acquisition of Expressions Parfumées and CHF 1 million from the acquisition of Naturex.
Per category, the fine fragrances segment saw the largest increase in sales, increasing at 11.9% on a like-for-like basis as a result of strong growth in all regions. Fragrance ingredients and active beauty businesses saw an increase of 6.9% on a like-for-like basis due to a strong performance of local and regional customers. Additionally, consumer products sales increased 5.2% on a like-for-like basis, with South Asia growing at double digits and solid growth from Asia and Latin America. However, sales in North America decreased due to a decline with international customers in the fabric care segment.
Beverage and Dairy Flavors Expand
The company also saw strong growth in its flavor division, which saw sales reach CHF 2,195 million, a growth of 4.8% on a like-for-like basis and an increase of 8.8% in Swiss francs. Growth was also helped by the acquisition of Centroflora Nutra and Naturex, which contributed CHF 6 million and CHF 35 million, respectively.
Strong growth in the category was attributed to positive sales across beverage, dairy, sweet goods and snack categories. Latin America saw the largest growth, increasing at 13.5% on a like-for-like basis, support by improved economic situations along with momentum in Argentina, Mexico and Columbia. Another growing market, Asia Pacific, saw sales increase by 5.7% on a like-for-like basis. Double-digit growth was seen from India and Thailand markets, while China and Indonesia both saw solid growth.
In Europe, Africa and the Middle East, sales increased by 4.3% on a like-for-like basis. Double-digit growth was seen in Russia, Ukraine and Greece, while Poland and Turkey brought in solid single-digit growth. In Africa and the Middle East, Egypt and South Africa contributed positively to the regional performance, which was offset by challenging market condition across the Middle East and Nigeria. Additionally, sales in North America increased by 2.1% on a like-for-like basis across existing beverage, dairy and sweet goods businesses.
