Givaudan Reports Continued Sales Momentum
Flavour Division sales were CHF 1,698 million during the first nine months of 2012, an increase of 4.8% in local currencies and 7.7% in Swiss francs over the same period in 2011. The increased sales were as a result of new wins in key segments and volume growth of the existing business.
9 Oct 2012 --- In the first nine months of 2012 Givaudan recorded sales of CHF 3,231 million, an increase of 6.1% in local currencies and 8.8% in Swiss francs compared to the previous year.
Givaudan continues to demonstrate strong business momentum with a full project pipeline and win rates sustained at a high level.
Mid-term, the overall objective is to grow organically between 4.5% and 5.5% per annum, assuming a market growth of 2-3%, and to continue on the path of market share gains. By delivering on the company's five pillar growth strategy - developing markets, Health and Wellness, market share gains with targeted customers and segments, research and sustainable sourcing - Givaudan expects to outgrow the underlying market and to continue to achieve its industry-leading EBITDA margin while improving its annual free cash flow to between 14% and 16% of sales by 2015.
Givaudan confirms its intention to return above 60% of the company's free cash flow to shareholders once the targeted leverage ratio, defined as net debt, divided by net debt plus equity, of 25% has been reached. For this ratio calculation, the Company has decided to exclude from equity any impact arising from the proposed changes of IAS 19 - Employee Benefits (revised) going forward.
Flavour Division sales were CHF 1,698 million during the first nine months of 2012, an increase of 4.8% in local currencies and 7.7% in Swiss francs over the same period in 2011. The increased sales were as a result of new wins in key segments and volume growth of the existing business.
Sales expansion in the developing markets continued while the mature markets continued their good performance during the first nine months against very strong comparables. All segments continued to expand globally with strong performances in Beverage, Sweet Goods and Snacks.
Sales in Asia Pacific increased by 4.6% in local currencies as a result of new wins and growth of the existing business. The developing markets achieved high single digit growth driven by particularly strong performances in Indonesia and Thailand. The mature markets continued their good performance against last year's strong double digit comparables. New wins across major markets fuelled the growth in Beverages, Savoury and Snacks.
Sales in Europe, Africa and the Middle East grew by 3.5% in local currencies for both the developing and mature markets. This was driven by high single digit growth in the developing markets of Africa and Eastern Europe coupled with moderate growth in the mature markets of Western Europe led by Great Britain. All business segments increased with the exception of Savoury. Growth of the existing business in Beverage and new wins in Snacks led the overall expansion in the region.
North America sales increased by 3.4% in local currencies. All segments grew with the exception of Dairy. High single digit gains in the Beverage segment and double digit growth in Snacks were driven by new wins and existing business evolution.
Sales in Latin America increased by 12.9% in local currencies with strong performances in all of the major markets. Argentina and Mexico saw double digit growth and Brazil also experienced strong growth. Growth in Latin America was a result of new wins and volume gains in existing business, especially in the Beverage, Dairy and Savoury segments.
