Givaudan Reports $2.08 Billion Sales in its Flavor Business

Feb 16 2012 --- Givaudan Group released its finance figures, the company reported strong sales. Sales were 3.9 billion Swiss francs ($4.2 billion), up 5.2% in local currencies.

 

Gilles Andrier, Chief Executive Officer, comments: “Our 2011 results are a convincing demonstration of the continued value we bring to our customers. The business achieved a strong sales momentum in a tough environment and a significant profit improvement in the second half of the year. We are well on track for 2012 and to deliver on our mid-term targets.”

 

The Flavour Division accounted for sales of 2.08 billion francs ($3.01 billion), a growth of 5.7% in local currencies and a decline of 7.5% in francs.

 

Sales in developing markets increased at near double digit growth over 2010 while the mature markets delivered above average growth despite the unfavorable economic conditions. All major segments grew favorably with Beverage, Savoury and Snacks leading the way.

 

The strategic pillars in the Flavour Division achieved strong growth with emphasis on expanding the developing markets, implementing key Health and Wellness programs, gaining market share with targeted customers, and providing strategic solutions to the Food Service industry.

 

EBITDA decreased to 407 million francs ($438 million) from 489 million francs ($526 million) last year.

 

Operating income declined to 239 million francs ($257 million) from 317 million francs ($341 million) last year. The operating margin on a comparable basis decreased to 12.9% from 15.9% reported last year. 

 

Throughout all regions and segments, the Flavour Division worked closely with its customers on growth and innovation opportunities. In Health and Wellness applications, the division continued its successful commercialisation of sweetness and salt replacement solutions, translating into a double-digit growth rate.

 

Sales in Asia Pacific achieved a 10.5% growth in local currencies, a solid performance on top of a double digit prior year comparables. The developing markets of China, India and Vietnam recorded double digit gains while Indonesia delivered a high single digit increase.

 

Sales in the mature markets escalated as well with solid growth in Japan and Oceania. Givaudan's global footprint was able to react quickly to support Japanese customers needs following the following the earthquake and tsunami in March.

 

Progress was well balanced across all segments as strong new wins complemented the established business growth with gains coming from Beverage, Dairy, Snacks and Savoury. The region delivered double digit growth in the divisional strategic growth pillars, with strong emphasis in Food Service and Health and Wellness sales.

 

To support growth momentum in India, Givaudan is working to expand the technical centre that will house expanded flavour creation, application and innovation capabilities to service the fast growing flavour and taste opportunities in the Indian marketplace.