Givaudan Reports Above Market Growth

04/04/07 In the first quarter 2007, leading flavours and frangrances supplier Givaudan recorded sales of CHF 890 million, an increase in local currencies of 19.8% over last year. This reflects the good organic growth of Givaudan and the inclusion of Quest sales as of March 2007.

On a pro forma basis, as if Quest had already been consolidated since 1 January 2006, sales reached 1,124.8 million corresponding to a growth in local currencies of 5.3% and 4.0% in Swiss francs.

Givaudan’s Flavour Division recorded three months sales of CHF 594.4 million, representing a growth of 2.4% in local currencies and a growth of 0.7% in Swiss Francs. Excluding the effects of the on-going streamlining of commodity ingredients (CHF 16 million in the first quarter), local currency growth was 5.3%.

All regions recorded strong growth with the exception of North America which showed a flat development compared to last year’s strong results. Asia Pacific reported high single digit growth. The developing markets of Thailand, Malaysia, Korea and the Indian Subcontinent continued its strong momentum and posted double digit growth. China delivered high single digit growth on top of last year’s good momentum. Japan recorded a renewed growth as a result of new wins. All business segments reported good performance led by a double digit growth in Confectionery combined with solid growth coming from Dairy, Beverages and Savoury.

Latin America posted double digit growth against a strong prior year comparable. Strongest growth came from the South Cone markets with a double digit performance, driven by both, existing products and new wins in the Beverage and Savoury segments. The Brazilian market gained due to the strength of the Savoury segment.

Sales in North America were flat. Savoury recorded a good performance due to growth in the retail and in foodservice. Flavours for snacks kept its excellent momentum. Confectionary and Dairy showed a good development. Beverages maintained its high sales levels from last year, when the segment grew double digit.

Streamlining of commodity ingredients from the closure of New Milford continued. The Oconomowoc facility was successfully closed in February and all production transfers to the Devon site were completed.

Sales in Europe, Africa and Middle East recorded a high single digit growth with a good development in all segments. Beverages posted good sales results, namely in carbonated drinks and tea. Savoury made good progress in snacks and culinary applications. The developing markets recorded high double digit growth driven in CIS, Poland as well as South and East Africa. All major segments contributed to this achievement.