Givaudan has released a report of 2021 full-year results. Notably, the adjustment to prices due to increased costs. Highlights of the report include:
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- Sales of CHF 6.7 billion, up 7.1% on a like-for-like basis and 5.7% in Swiss francs.
- Strong sales across all markets and with all customer groups.
- All 2025 strategic focus areas on track and contributing to the results.
- EBITDA of CHF 1,482 million, an increase of 6.0% over 2020.
- EBITDA margin of 22.2%, versus 22.1% in 2020.
- Comparable EBITDA margin of 22.5% compared to 22.8% in 2020.
- Net income of CHF 821 million, an increase of 10.5% over 2020.
- Free cash flow of 12.6% of sales or CHF 843 million.
- Proposed dividend of CHF 66.00 per share, up 3.1% year-on-year.
Business Performance
- Full-year sales were CHF 6,684 million, an increase of 7.1% on a like-for-like basis and 5.7% in Swiss francs when compared to 2020.
- Fragrance & Beauty sales were CHF 3,091 million, an increase of 6.6% on a like-for-like basis and 5.8% in Swiss francs.
- Taste & Wellbeing sales were CHF 3,593 million, an increase of 7.6% on a like-for-like basis and 5.7% in Swiss francs.
With higher input costs in 2022, the company is implementing price increases in collaboration with its customers to fully compensate for the increases in input costs.
CEO Gilles Andrier said, “I am very pleased with the successful start that we have made into our 2025 strategic cycle, with all parts of our business and our strategic focus areas contributing to the strong financial results that we have achieved in 2021. With the continuing challenges of the COVID-19 pandemic during 2021, I am extremely grateful to all of the Givaudan employees around the world for their continued focus and commitment in supporting our customers throughout the difficult conditions we have faced over the last two years.”
Gross Margin
The gross profit increased by 7.4% from CHF 2,659 million in 2020 to CHF 2,855 million in 2021.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)
The EBITDA increased by 6.0% to CHF 1,482 million in 2021 compared to CHF 1,397 million in 2020, whilst the EBITDA margin was 22.2% in 2021 compared to 22.1% in 2020.
Operating Income
The operating income was CHF 1,089 million compared to CHF 996 million, an increase of 9.3% versus 2020.
Financial Performance
Financing costs in 2021 were CHF 94 million versus CHF 86 million in 2020, largely related to the increase in the net debt of the group in connection with the acquisitions that the group has made.
Net Income
The net income was CHF 821 million in 2021 compared to CHF 743 million in 2020, an increase of 10.5%, resulting in a net profit margin of 12.3% versus 11.8% in 2020.
Cash Flow
Givaudan delivered an operating cash flow of CHF 1,288 million in 2021, compared to CHF 1,189 million in 2020.
Net working capital as a percentage of sales was 24.0%, compared to 24.4% in 2020.
Total net investments in property, plant and equipment were CHF 177 million, compared to CHF 180 million in 2020, as the group continues to invest in expanding its capabilities in high growth markets.
Financial Position
Net debt at December 2021 was CHF 4,394 million, compared to CHF 4,040 million at December 2020, with the increase driven by the acquisitions of DDW and Custom Essence.
Dividend Proposal
At the Annual General Meeting on 24 March 2022, Givaudan’s Board of Directors will propose a cash dividend of CHF 66.00 per share for the financial year 2021, an increase of 3.1% versus 2020. This is the twenty-first consecutive dividend increase following Givaudan’s listing at the Swiss stock exchange in 2000.
Givaudan Fragrance & Beauty
Fragrance & Beauty sales were CHF 3,091 million, an increase of 6.6% on a like-for-like basis and 5.8% in Swiss francs. This sales growth was mainly driven by the rebound of the Fine Fragrances and Active Beauty businesses which were particularly impacted by the COVID-19 pandemic in 2020.
Total sales for Fragrance Compounds (Fine Fragrances and Consumer Products combined) increased by 5.5% on a like-for-like basis. In Swiss francs, sales of compounds increased to CHF 2,640 million from CHF 2,529 million in 2020.
Fine Fragrances sales increased by 22.5% on a like-for-like basis against a comparable sales decline of 6.0% in the prior year. Consumer Products sales increased by 1.5% on a like-for-like basis against a strong comparable growth of 9.1% in 2020.
Sales of Fragrance Ingredients and Active Beauty increased by 14.2% on a like-for-like basis, with strong double-digit growth in Active Beauty and a strong single-digit growth in Fragrance Ingredients.
Givaudan Taste & Wellbeing
Taste & Wellbeing sales were CHF 3,593 million, an increase of 7.6% on a like-for-like basis and an increase of 5.7% in Swiss francs.
From a segment perspective, the strong sales performance was achieved across all segments and mainly by beverages, savory and snacks.
Asia Pacific
Sales in Asia Pacific increased by 7.4% on a like-for-like basis.
South Asia, Africa and the Middle East (SAMEA)
Sales in South Asia, Africa and the Middle East increased by 6.1% on a like-for-like basis.
Europe
Sales in Europe increased by 6.3% on a like-for-like basis.
North America
On a like-for-like basis, sales in North America increased by 5.8%, driven by strong performance in the beverages and savory segments.
Latin America
Sales in Latin America increased 19.3% on a like-for-like basis, led by strong double-digit volume growth in Mexico, Brazil, Colombia, Chile and Argentina, and across all segments.
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