Givaudan Q3 Performance Boosted by Latin America Growth
11 Oct 2016 --- Strong growth in Latin America helped Givaudan's flavor division report sales up 2.9 percent to 617m Swiss francs ($626m) in the third quarter, but Western Europe and the Middle East continued to be challenging. The Swiss fragrance and flavor maker also announced that that its chairman and finance chief are to stand down next year.
Givaudan reported third quarter sales of 1.184bn Swiss francs ($1.2bn), up 3.1 percent on a like-for-like basis, which was slower than growth the first part of the year.
Its flavors division, which supplies products for likes of Danone, performed well for the most part in the period July to September.
In a bid to offset difficult trading in Western Europe, Givaudan has looked to win new contracts from faster-growing economies in Latin America and Asia.
Sales in Asia Pacific increased 4.9 percent on a like-for-like basis with strong double-digit growth in India and Indonesia coupled with good growth in the Indochina area.
The mature markets of Japan, Oceania and South Korea delivered good growth helped by the expansion of the existing business. Double-digit growth in Sweet Goods and Snacks contributed to the performance in the region.
Across Europe, Africa and Middle East (EAME), sales were down 0.3 percent on a like-for-like basis.
An improved performance in Sub-Saharan Africa, Russia and South Eastern Europe was offset by deteriorating market conditions in the Middle-East.
The mature markets of Western Europe were helped by strong results in Italy and Scandinavia, offset by lower sales in France and Germany. Snacks and Sweet Goods contributed due to business growth.
In North America, sales nudged down 0.9 percent on a like-for-like basis with a good performance in Dairy and Sweet Goods being offset by lower sales in Beverages.
Across Latin America, sales were up 17.9 percent on a like-for-like basis. Double-digit growth in Argentina, Brazil and Central America was driven by existing business growth and strong new wins while Mexico registered a solid performance.
Givaudan has also announced that Chairman Dr Jürg Witmer is to retire next year and will be replaced by Vice Chairman Calvin Grieder, who joined Givaudan's board of directors in 2014.
Separately, Tom Hallam, currently Head of Group Controlling & Business Development, will become its new Chief Financial Officer next year, replacing Matthias Währen, who is retiring.
Earlier this year, Givaudan announced its acquisition of ConAgra Foods’ Spicetec Flavors & Seasonings business for $340m.
