Givaudan is gaining momentum, led by surging demand for fine fragrances and stronger growth in consumer products. But the Swiss flavors and fragrance giant’s nine-month results also expose a widening performance gap between its two main businesses, with Taste & Wellbeing struggling to match the pace of Fragrance & Beauty.
“We are pleased with the accelerating momentum in our sales growth in the first nine months of 2026, with sustained strong performance in our Fragrance & Beauty business and sequentially improving performance in Taste & Wellbeing, in line with expectations," said Christian Stammkoetter, CEO. "With ongoing geopolitical and macroeconomic challenges, these results once again demonstrate the value that Givaudan’s unique capabilities bring to all of our customers in supporting their growth ambitions across all product segments and geographies.”
For the first nine months of 2026, Givaudan reported sales of CHF 5.891 billion, up 5.2% on a like-for-like basis, excluding acquisitions and currency effects. Growth accelerated sharply in the third quarter, when organic sales increased 8.6% year over year to CHF 2.092 billion, comfortably ahead of analyst expectations. The results reflect stronger volumes, particularly in fine fragrance, as well as improving momentum in flavors.
Fragrance & Beauty delivered the strongest performance, generating CHF 3.15 billion in sales for the first nine months, up 8.8% like for like compared with 8.0% growth in the same period last year.
Fine fragrance remained a major growth engine, with sales up 15.3%. Although that trailed the exceptionally strong 18.7% growth recorded a year earlier, the business continued to expand at a double-digit rate. The third quarter provided another boost, with Fragrance & Beauty sales rising 13.5% organically.
Consumer Products was another bright spot, growing 9.3% in the first nine months, accelerating from 5.9% in the prior-year period. The results point to sustained demand across fragrance applications beyond prestige perfumery.
Not every part of the division shared in the gains. Fragrance Ingredients and Active Beauty sales declined 2.5%, reversing the 1.5% growth recorded in the first nine months of 2025.
Givaudan’s Taste & Wellbeing division generated CHF 2.741 billion in sales, up just 1.5% like for like for the nine-month period. That compares with 3.4% growth a year earlier.
There are signs of improvement. Third-quarter organic growth reached 3.5%, up from 2.1% in the same quarter of 2025 and ahead of analysts’ expectations. Management described the sequential improvement as consistent with its plans for the business.
However, the division’s reported sales declined 2.8% in Swiss francs, reflecting the impact of currency movements. Foreign exchange effects reduced reported group sales growth as well, despite underlying demand gains.
North America remains the clearest weakness. Regional sales in the first nine months fell 3.3% organically, compared with 3.9% growth in the prior-year period. Givaudan attributed the decline to continued weakness in its Health and Functional business and tariff refunds paid to U.S. customers during the third quarter.
The company has already outlined plans to improve Taste & Wellbeing’s performance, including a review of its underperforming natural ingredients business. The division’s improving quarterly trajectory is encouraging, but sustained recovery will depend on whether that momentum extends across its businesses and geographies.
Regional performance was mixed. Asia Pacific delivered the strongest turnaround, with nine-month like-for-like sales growth reaching 7.1%, compared with a 0.5% decline in the prior-year period.
South Asia, Africa and the Middle East grew 4.1%, slowing from 8.8% in 2025. Europe grew 1.5%, down from 3.8%, while Latin America advanced just 1.1%, compared with 3.1% a year earlier.
Across market types, high-growth markets expanded 7.9%, while mature markets grew 2.7%. Both remained positive, although growth moderated slightly against the prior-year comparisons.
Currency movements also continued to weigh on reported results. For the first nine months, foreign exchange effects reduced sales by CHF 234 million, or 4.0%. Acquisitions contributed CHF 82 million, including contributions from Belle Aire Creations and Vollmens Fragrances.
The company’s 2030 strategy, Driving sustainable growth with customers, calls for average annual like-for-like sales growth of 4% to 6% over the five-year period, alongside average adjusted free cash flow above 12%. Its priorities include developing higher-value products and solutions, expanding into adjacent markets and pursuing strategic acquisitions.
With nine-month organic growth at 5.2% and third-quarter momentum accelerating, Givaudan remains within its long-term sales-growth target range. The next test is whether the company can sustain fragrance demand while translating the improving trajectory in Taste & Wellbeing into a broader recovery.
