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Givaudan announced sales growth of 6.7% for fiscal 2008 to reach CHF 4,087 million. The company’s operating income increased 17.7% to CHF 379 million, while its operating margin, on a comparable basis, was flat at 11.9% in 2008 versus 2007.
"Through continued long-term investments made in recent years, we have created a talent, asset and technology base that is the key to our success," said Jürg Witmer, chairman, Givaudan. "We are able to deliver effectively into markets that are less volatile and exposed to economic downturns because the sensory dimension addresses basic needs of consumers in most consumer products."
Fragrance division sales were up 7.9% to CHF 1,898 million. Operating income was up 29.7% to CHF 153 million. The results, according to the company, were driven by the above market growth of fine fragrances and the good growth of specialty ingredients and the consumer products business. The flavor division reported sales of CHF 2,189 million, representing a growth of 5.8% in local currencies.
Givaudan will continue to focus on increasing its share in developing countries and in key market segments, and is confident of achieving the savings target of CHF 200 million by 2010.
"In 2009 and possibly beyond, the world will have to expect an unprecedented decline in global economic activity," said Witmer. "Although this will be very challenging, my fellow board members and I are convinced that Givaudan is well equipped to navigate through the storms ahead. Our solid business model and long-term orientation will enable us to continue to create value for our shareholders and customers in the years to come."
A PDF of the company's 2008 annual report is available on the company's Web site.