Oct 9, 2020
Givaudan: sales growth hampered by exchange rate impact
Oct 9, 2020
On Thursday, Swiss group Givaudan, the world's number one fragrance and aroma manufacturer, published sales figures for the first nine months of the year that were slightly below expectations. Exchange rate effects slowed down growth, despite an improvement in Q3.
Givaudan's revenue in the first nine months of the financial year grew by 2.7% compared to the same period last year, reaching CHF4.7 billion (€4.4 billion). Sustained demand for detergent and cleaning fragrances managed to compensate for a slump in fine perfumery, as the group indicated in a press release.
Givaudan stated that, net of exchange rate effects, acquisitions and divestments, its sales grew by 3.7%. The negative impact of exchange rate variations, the group having to contend with a strong Swiss franc, was calculated at CHF317 million.
According to Swiss agency AWP, analysts expected a revenue of CHF4.8 billion on average.
In the period in question, sales for Givaudan’s perfumery and beauty products business, bolstered by a series of acquisitions, grew by 5.3%, reaching CHF2.1 billion, despite a marked slump in fine fragrances, hit by the widespread closures of perfumeries and airport duty free shops, following lockdown measures and travel restrictions.
Sales for the aromas division recorded instead a more modest growth, increasing by 0.6% to reach CHF2.5 billion.
Gilles Andrier, Givaudan's general manager, said he was “very satisfied” with the group's performance, given that the Covid-19 pandemic is “still having a strong impact worldwide,” as he stated in the press release.
In Q3, the group’s sales showed signs of renewed energy, growing by 3.1%, having increased by a more tentative 2.8% in Q2.
Givaudan sets itself new financial targets every five years. At the end of August, the group published its new forecast up to 2025, predicting a 4% to 5% annual growth rate again.
Zurich, 8 October 2020 (AFP)
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