Givaudan has released its first quarter sales for 2023, with recorded sales of CHF 1,773 million, an increase of 3.6% on a like-for-like (LFL) basis and a decrease of 0.4% in Swiss francs.
With sustained higher input costs in 2023, the company is continuing to implement price increases in collaboration with its customers to fully compensate for the increases in input costs.
Sales Drivers & Market Breakdowns
Fragrance & Beauty sales were CHF 837 million, an increase of 6.8% LFL and an increase of 3.3% in Swiss francs.
On a business unit basis, Fine Fragrance sales increased by 20.9% LFL against a high prior year comparable growth of 17.4%, Consumer Products sales increased by 3.0% LFL and sales of Fragrance Ingredients and Active Beauty increased by 5.1% LFL.
The sales growth was driven by the volume increases in Fine Fragrance with sustained high levels of new business. In addition, pricing actions were implemented in all business units. The growth was achieved across all customer groups with a strong performance in the high-growth markets.
Taste & Wellbeing sales were CHF 936 million, an increase of 1.0% LFL and a decrease of 3.5% in Swiss francs.
On a regional basis, the sales performance was driven by Europe, which increased by 6.7% LFL, South Asia, Africa and the Middle East sales which increased by 23.4% and Latin America, where sales increased by 10.9% LFL. Sales in North America declined by 10.7% LFL and Asia Pacific declined by 3.8%. Pricing actions were implemented in all regions.
From a segment perspective Snacks, Beverages, and Sweet Goods all contributed to the growth.
Givaudan CEO Gilles Andrier shared, “Our solid Q1 sales once again demonstrate the importance of the balance that Givaudan has across the different business segments, geographies and client groups. We have also demonstrated our continued focus and innovation programs which allow our customers to bring great products to the market.”
Givaudan’s 2025 strategy, ”Committed to Growth, with Purpose,” is the company’s intention to deliver growth in partnership with customers, through creating inspiring products for happier, healthier lives and having a positive impact on nature, people and communities.
The company aims to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow of at least 12%, both measured as an average over the five-year period strategy cycle. In addition, Givaudan aims to deliver on key non-financial targets around sustainability, diversity and safety, linked to Givaudan’s purpose.
As for long-term goals, the company’s release reads, “Our ambitions include doubling our 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.”