Givaudan has released the company's 2022 full-year sales. The company reported CHF 7,117 million in sales, an increase of 5.3% on a like-for-like (LFL) basis and 6.5% in Swiss francs when compared to 2021.
Report highlights include:
– Sales of CHF 7.1 billion, an increase of 5.3% on a like-for-like basis and 6.5% in Swiss francs
– Strong performance in high-growth markets with 9.9% growth on a like-for-like basis
– EBITDA of CHF 1,476 million and EBITDA margin of 20.7%, versus 22.2% in 2021
– Comparable EBITDA margin of 20.9% compared to 22.5% in 2021
– Net income of CHF 856 million, an increase of 4.2% over 2021
– Free cash flow of 6.7% of sales or CHF 479 million
– Proposed dividend of CHF 67.00 per share, up 1.5% year-on-year
– CDP Double A rating for climate and water for the fourth consecutive year
Gilles Andrier, CEO, Givaudan, shared, “We are very pleased with our solid performance in 2022, despite the challenging environment that we have faced throughout the year. Once again we have demonstrated our strong focus on supporting the growth of our customers through excellent supply chain performance, whilst at the same time delivering innovative and impactful solutions which are a key part of our 2025 strategy. With the ongoing challenges which the external environment brings, I am extremely grateful to all Givaudan employees around the world for their continued commitment in supporting us in continuing to deliver industry-leading performance.”
The gross profit decreased from CHF 2,855 million in 2021 to CHF 2,762 million in 2022. The gross margin decreased to 38.8% in 2022 compared to 42.7% in 2021 mainly as a result of the dilution effect of the pricing actions to compensate for higher input costs, as well as the higher raw material, energy and freight costs.
Givaudan’s financial position remained solid at the end of the year. Net debt at December 2022 was CHF 4,530 million, compared to CHF 4,394 million at December 2021. The net debt to EBITDA ratio was 3.07, compared to 2.97 at December 2021.
The net income was CHF 856 million in 2022 compared to CHF 821 million in 2021, an increase of 4.2%, resulting in a net profit margin of 12.0% versus 12.3% in 2021. Basic earnings per share were CHF 92.83 compared to CHF 89.03 for the same period in 2021.
Givaudan delivered an operating cash flow of CHF 948 million in 2022, compared to CHF 1,288 million in 2021.
Net working capital as a percentage of sales was 26.8%, compared to 24.0% in 2021. Total net investments in property, plant and equipment were CHF 211 million, compared to CHF 177 million in 2021, with the easing of COVID-19 restrictions around the world supporting a higher level of project activity in 2022.
Intangible asset additions were CHF 78 million in 2022, compared to CHF 70 million in 2021 as the company continued to invest in its digital roadmap and in bringing all acquired entities onto the Givaudan operating platform.
Total net investments in tangible and intangible assets were 4.1% of sales in 2022, compared to 3.7% in 2021.
Operating cash flow after net investments were CHF 659 million in 2022, versus CHF 1,041 million in 2021. Free cash flow4 was CHF 479 million in 2022, versus CHF 843 million for the comparable period in 2021. As a percentage of sales, free cash flow in 2022 was 6.7%, compared to 12.6% in 2021.
Fragrance & Beauty
Fragrance & Beauty sales were CHF 3,256 million, an increase of 5.5% LFL and 5.3% in Swiss francs. The growth is said to be driven by the sustained strong performance of Fine Fragrances and Fragrance Ingredients combined with the return to good growth momentum in the Consumer Products business in the second half of 2022. In Active Beauty the single-digit growth was achieved against a high double-digit comparable growth in 2021.
Taste & Wellbeing
Sales in Taste & Wellbeing were CHF 3,861 million, an increase of 5.2% on an LFL basis and an increase of 7.5% in Swiss francs. On a regional basis, sales in Asia Pacific increased by 5.3% LFL; in South Asia, Africa and the Middle East, sales increased by 17.6% LFL; in Europe, sales increased by 11.1% LFL; in North America sales decreased by 6.4% LFL; and in Latin America, sales increased by 16.7% LFL basis. In the key strategic focus areas, solid single-digit sales increases were recorded in plant-based proteins, health and wellness and in Naturals.
At the annual general meeting scheduled for March 23, 2023, Givaudan’s Board of Directors will propose a cash dividend of CHF 67.00 per share for the financial year 2022, an increase of 1.5% versus 2021. This is the twenty-second consecutive dividend increase following Givaudan’s listing on the Swiss stock exchange in 2000.