Givaudan beats sales expectations as fragrance demand stays strong

what happened

According to Newsmetry API, Swiss fragrance and flavour producer Givaudan posted an 8.6% year-on-year increase in comparable sales for the three months through September. The company’s analyst poll had pointed to growth of 4.7%. Performance was supported by robust momentum in fragrances and a further improvement in the flavours business.

Revenue from flavourings used in food and beverages increased 3.5%, versus a 2.8% consensus estimate. The fragrance division, which supplies scents for perfumes and household products, expanded 13.5%, while analysts had expected 6.6%. Sales for the first nine months totalled 5.89 billion Swiss francs ($7.07 billion), 5.2% higher on a like-for-like basis and above the 3.9% consensus. The company said it raised prices with clients this year to fully offset higher input costs.

why it matters

The figures provide an early indication of demand among food, drink, perfume and household-product makers supplied by Givaudan. After weak North American sales, the group is working to strengthen flavours, including through a strategic review of its natural ingredients business.

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