Givaudan reports strong sales growth in Q3, maintains 2020 targets

11 Oct 2017 --- In the first nine months of 2017, Givaudan recorded sales of CHF 3,757 million (US$3,854 million), an increase of 3.5 percent on a like-for-like basis and 6.8 percent in Swiss francs compared to the previous year. The company’s Flavor Division sales were CHF 2,017 million (US$2,069 million), an increase of 4.7 percent on a like-for-like basis and an increase of 10.9 percent in Swiss Francs (CHF).

Givaudan continued the year with good business momentum and with the project pipeline and win rates sustained at a high level. This good growth was achieved against strong prior year comparable for the same period in 2016, particularly in the first six months and in the Fragrance Division. The company continues to successfully implement price increases in collaboration with its customers to compensate the increases in input costs.

The company reaffirms its 2020 ambition to create further value through profitable, responsible growth. Building on the first year of this strategic cycle in 2016, Givaudan’s 2020 ambition is built on the three strategic pillars of growing with its customers; delivering with excellence; and partnering for shared success. During the three months to 30 September 2017, the company successfully closed the acquisition of Vika B.V. and announced the acquisition of the Nutrition Division of the Centroflora Group (Centroflora Nutra), both of which are fully aligned with the 2020 strategy.

Flavor Division
The Flavor Division reported sales of CHF 2,017 million (US$2,069.5 million), a growth of 4.7 percent on a like-for-like basis and an increase of 10.9 percent in Swiss Francs. Givaudan successfully closed the acquisition of Vika B.V. acquired in September 2017. Including all acquisitions, for the comparable period the growth was 12.5 percent in local currency.

The sales performance was driven by new wins and strong business expansion in North America, Europe, Middle East and Africa.

Asia Pacific grew whilst Latin America experienced a decline compared to 2016, against strong comparables, largely driven by challenging market conditions in Brazil. From a segment perspective, dairy, savory and beverages all contributed to the positive sales development.

Asia Pacific
Sales in Asia Pacific increased by 3.4 percent on a like-for-like basis. In high growth markets, new wins and existing business expansion in China, India, Thailand and the Philippines contributed positively to the growth which was only partially offset by weaker sales in Indonesia. The mature markets within the region continued to grow with a particularly good performance in Singapore and Oceania.

Europe, Africa and the Middle East
Sales in Europe, Africa and the Middle East increased by 4.8 percent on a like-for-like basis. Double-digit growth in the high growth markets of the Middle East and North Africa coupled with good growth in Central and Eastern Europe contributed to the performance in the region. The mature markets of Western Europe contributed to the growth with good results in the UK, Benelux, Italy and Iberia. Within the segment performance, in particular, savory and beverages segments contributed to the strong performance.

Latin America
Sales in Latin America decreased 2.4 percent on a like-for-like basis against strong comparable growth in 2016 of 17.9 percent. Continued good sales momentum in Argentina and Mexico was offset by the impact of the challenging economic environment in Brazil.

North America
Sales in North America increased by 8.6 percent on a like-for-like basis. The strong growth was driven by new wins and growth of the existing business in the dairy, beverages and savory segments.