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Givaudan results show strong growth in organic sales and profit

By Simon Pitman+

31-Jan-2014
Last updated on 31-Jan-2014 at 12:11 GMT

Givaudan results show strong growth in organic sales and profit

Fragrance and flavours ingredients provider has published full year 2013 results showing strong gains in organic sales worldwide, together with a rise in net income of nearly 20%.

The company said that full year like-for-like sales came in at 5.5% to CHF4.4 billion (€3.60 billion), which represented growth of 2.6% when taking into consideration the negative impact of foreign currency.

On the back of this net profit was up 19.5% to CHF490 million, while EBITDA was up 9.1% to CHF970 million, which improved the EBITDA margin from 20.9% in 2012 to 22.2% for the current year.

Fragrance compounds and consumer products show strong growth

Breaking the two principle business units down, the company’s fragrance division registered full-year sales of CHF 2.08bn, which represented a rise of 5.1% in like-for-like terms and a rise of 3.0% in Swiss Francs.

On the flavours side of the business, sales were up by 5.8% on a like-for-like basis to reach CHF2.27 billion.

In the fragrance division the fragrance compounds business increased like-for-like sales by 6.0% to CHF1.85 billion, while fine fragrance sales were up just 1.8%, driven by stronger gains in Latin America.

Mixed results in Fine Fragrances

Consumer Product sales were up by 7.1% on a like-for-like basis, driven by strong growth in developing markets, while growth in Fine Fragrances grew by 1.8%, a figure that was boosted by a strong performance in Latin American, but counterbalanced by weaker sales in Eastern Europe.

The company noted that Fine Fragrances that performed well included Tom Ford Noir, Tom Ford Café Rose, Prada Luna Rossa, James Bond 007 by James Bond, Red Sin by Christina Aguilera and True Reflection for Kim Kardashian.

The company says that it manages to control debt significantly during 2013, reducing it from CHF 1.15bn in 2012, to reach CFH 816 million in 2013, and has subsequently raised its mid-term guidance for the 2014 financial year to achieve organic sales growth of between 4.5% to 5.5%, with market growth in the 2% to 3% range.

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