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Givaudan SA’s net profit for the first half of 2012 soared 68% from a year earlier, boosted by sales growth in both its fragrance and flavor divisions. The company also backed its mid-term forecast of 4.5% to 5.5% organic sales growth annually, based on a market growth of 2–3%.
For the first half of the year, Givaudan’s fragrance division sales were CHF 994 million, up 8.3% in local currencies and up 7.2% in Swiss francs, driven by a very strong performance in the consumer products business unit in Latin America and Asia-Pacific as well as moderate growth in the fine fragrance business.
By segment, fine fragrance sales grew 2.4% in local currencies, marked by a strong inflow of new business, noted with strong double-digit growth in Latin American sales. In Europe, new wins across key accounts drove sales growth. In North America, sales were down as new business wasn’t sufficient to offset erosion. Sales of fragrance ingredients fell 2.1% in local currencies during the period, reflecting a weak performance for sales of commodities.
As a whole, Givaudan posted total first-half net income of CHF 201 million, compared to CHF 120 million a year earlier. Group sales for the first half of the year rose 6.9% in local currencies and 6% in Swiss francs to CHF 2,126 million.