Givaudan's first-half 2026 results highlight a widening divide between its fragrance and flavor businesses, with Fragrance & Beauty continuing to drive growth while Taste & Wellbeing remains largely flat.
The company reported first-half sales of CHF 3.8 billion, representing 3.6% like-for-like (LFL) growth despite a 1.7% decline in Swiss francs due to currency effects. Growth was balanced geographically, with high-growth markets rising 5.2% LFL and mature markets increasing 2.0% LFL.
Fragrance & Beauty was the clear standout, delivering 6.5% LFL growth to CHF 2.01 billion. Consumer Products was the strongest-performing business, surging 9.2% LFL, while Fine Fragrance continued its momentum with 7.3% LFL growth despite lapping an exceptionally strong 18.0% comparison in the prior year. The lone weak spot within the division was Fragrance Ingredients and Active Beauty, which declined 4.1% LFL after growing 5.7% a year earlier.
Taste & Wellbeing, meanwhile, grew just 0.5% LFL to CHF 1.79 billion, reflecting uneven demand across regions. Asia Pacific was the division's brightest market with 4.9% LFL growth, while Europe posted a modest 0.3% increase. North America and Latin America both declined 1.5% LFL, underscoring continued softness in key food and beverage markets.
Although sales continued to grow organically, profitability weakened. Adjusted EBITDA margin slipped to 24.3% from 25.2%, while net income fell to CHF 475 million from CHF 592 million. Givaudan attributed the decline primarily to CHF 103 million in non-recurring costs related to litigation settlements, provisions, restructuring expenses and costs associated with competition authority investigations into the fragrance industry.
The results suggest fragrance remains Givaudan's primary growth engine, fueled by strong demand across both consumer products and fine fragrance, while flavors continue to face a more subdued operating environment.
