Givaudan: Continued good sales growth
In the first nine months of 2020 the Swiss company recorded sales of CHF 4,790 million, an increase of 3.7% on a like-for-like basis and 2.7% in Swiss francs. Fragrance & Beauty sales were CHF 2,199 million, an increase of 4.5% on a like-for-like basis and an increase of 5.3% in Swiss francs. Taste & Wellbeing sales were CHF 2,591 million, an increase of 3.1% on a like-for-like basis and an increase of 0.6% in Swiss francs.
Good busines momentum
As the COVID-19 pandemic continues to have an impact on a global level, the comapy sustained good business momentum whilst maintaining its operations and global supply chain with minimal disruption. The good growth was achieved across most product segments and geographies, with particularly strong performance in household, health and personal care segments within Fragrance & Beauty, as well as in packaged foods, savoury, snacks and nutraceuticals in Taste & Wellbeing. In the product segments most affected by the COVID-19 pandemic, namely fine fragrances and to a lesser extent active beauty in Fragrance & Beauty and Foodservice in Taste & Wellbeing, the Group experienced a continued reduction in business activity, as the restrictions related to the COVID-19 pandemic curtailed retail and travel retail activity as well as out-of-home food consumption.
“I am very pleased with our good sales performance during a period where the COVID-19 pandemic continues to have a significant impact on the world. Our group continues to demonstrate our market leadership and the important role that we play in sustaining the global supply chain in food and beverage as well as in household, health and personal care products,” said CEO Gilles Andrier. “I am especially proud of the entire organisation for their ongoing dedication and for enabling us to continue to support our customers to keep critical products available to consumers throughout the COVID-19 crisis.”
In the continuing challenging environment related to the COVID-19 crisis and in line with the company’s purpose, the group is strongly focused on:
- Protecting and supporting its employees. Be it those on site or those who are still working from home;
- Meeting the demands of its customers. Particularly for those products which support consumers throughout the pandemic around the world.
- Taking care of the communities in which it operates.
The Company’s 2020 ambition is to create further value through profitable, responsible growth. Building on the first four years of this strategic cycle, the company´s 2020 ambition is defined around the three strategic pillars of ‘Growing with our customers’, ‘Delivering with excellence’ and ‘Partnering for shared success’.
As part of the company’s 2020 strategy, it also seeks to create value through targeted acquisitions, which complement existing capabilities in providing winning solutions for its customers. Since 2014, the group has completed sixteen acquisitions, which are fully in line with the growth pillars within the Company’s 2020 strategy.
Ambitious financial targets are a fundamental part of the company´s strategy. They aim to outpace the market with 4-5% sales growth and a free cash flow of 12-17% of sales, both measured as an average over the five-year period of our strategy cycle. It is the company’s intention to maintain its current dividend practice as part of this ambition.