The Swiss producer of perfumes, flavors, and beauty components eased issues a few potential slowdown in the US on Tuesday, October 14, after reporting “sturdy” nine-month gross sales.
From January by September, the Geneva-based group recorded revenues of CHF 5.7 billion Swiss francs (EUR 6.1 billion or USD 7.1 billion), up 5.7% on a like-for-like foundation (excluding foreign money and acquisition results) and 1.7% in Swiss franc phrases.
As within the first half, positive fragrances continued to drive development, with gross sales surging 18.7% regardless of a excessive comparability base after years of double-digit positive factors.
The group additionally mentioned it carried on implementing value changes to “totally compensate” the influence of upper uncooked materials and customs prices, it mentioned in a press launch.
Intimately, Givaudan’s Perfumes & Magnificence division, which additionally contains fragrances for laundry and hygiene merchandise in addition to skincare components, generated gross sales of CHF 2.9 billion, up 8% in comparison with the identical interval a 12 months earlier, excluding foreign money results and acquisitions.
For his or her half, gross sales of flavors for the meals business amounted to CHF 2.8 billion, up 3.4%. In North America, gross sales grew by 3.9%.
Slowdown fears “dispelled”
These outcomes are in keeping with estimates from analysts surveyed by the Swiss company AWP, who had forecast a mean of CHF 5.7 billion in income, together with CHF 2.9 billion from the Perfume & Magnificence division and CHF 2.8 billion from Flavors.
Arben Hasanaj, an analyst at Vontobel, described the gross sales as “sturdy,” noting that they “dispel speedy market issues,” notably over “a slowdown in the US” or “a decline in perfumery,” he wrote in a market commentary.
Givaudan doesn’t challenge short-term forecasts however as a substitute supplies a rolling five-year roadmap. For the interval by the top of 2025, the group had focused annual gross sales development of 4–5%, however mentioned it’s “very more likely to exceed the higher finish” of that vary, as gross sales have already grown by a mean of seven.2% between 2021 and 2024.