×
92 878
Fashion Jobs
PACSUN
Human Resources Project Coordinator
Permanent · Anaheim
NORDSTROM
Asset Protection - Agent - Houston Galleria
Permanent · Houston
NORDSTROM
Manager - Asset Protection - Los Cerritos
Permanent · Cerritos
NORDSTROM
Asset Protection - Agent - Phipps Plaza
Permanent · Atlanta
NORDSTROM
Asset Protection - Agent - Houston Galleria
Permanent · Houston
NORDSTROM
Retail Stock & Fulfillment - Fashion Mall at Keystone
Permanent · Indianapolis
NORDSTROM
General Manager- Bazille- Stanford Shopping Center
Permanent · Palo Alto
NORDSTROM
Asset Protection - Agent - Tustin Marketplace Rack
Permanent · Tustin
NORDSTROM
Asset Protection - Agent - Howe Bout Arden Rack
Permanent · Sacramento
NORDSTROM
Asset Protection Agent - Mercado Rack, Naples, fl
Permanent · Naples
NORDSTROM
Asset Protection - Agent - Alamo Quarry Rack
Permanent · San Antonio
NORDSTROM
Retail Stock - Marketplace at Braintree Rack
Permanent · Braintree
NORDSTROM
Asset Protection - Agent - East Palo Alto Rack
Permanent · East Palo Alto
NORDSTROM
Inventory Integrity & Quality Manager - Riverside, ca
Permanent · Riverside
NORDSTROM
Asset Protection - Security Ambassador - Roosevelt Field
Permanent · Garden City
NORDSTROM
Asset Protection -Agent - East Palo Alto Rack
Permanent · East Palo Alto
NORDSTROM
Asset Protection - Security Ambassador - Newbury Rack
Permanent · Boston
NORDSTROM
Asset Protection Agent - Aventura
Permanent · Aventura
NORDSTROM
Asset Protection- Agent-The Sono Collection
Permanent · Norwalk
NORDSTROM
Asset Protection - Agent - Laguna Niguel Rack
Permanent · Laguna Niguel
NORDSTROM
Retail Stock & Fulfillment - Los Cerritos Center
Permanent · Cerritos
NORDSTROM
Retail Stock & Fulfillment - International Plaza
Permanent · Tampa
By
Reuters
Published
Jul 17, 2015
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Givaudan first-half profits rise on cost-cutting, backs targets

By
Reuters
Published
Jul 17, 2015

Givaudan, the world's biggest flavours and fragrance maker, said on Friday it is aiming to offset a demand slowdown from big consumer goods companies by looking for smaller, regional customers.

The Swiss company's first-half net profit rose more than 11 percent, beating analysts' forecasts. Cost-cutting, including moving production from a Swiss site to Mako, Hungary, helped to support the profit increase.

Givaudan


But sales at its fragrance division, which is heavily exposed to demand for luxury goods, fell 1.1 percent.

Givaudan Chief Executive Gilles Andrier told Reuters that the company, which provided the formula for Prada brand Miu Miu's recently released perfume, is increasingly seeking smaller and regional customers to reduce its reliance on the world's largest food makers and fragrance manufacturers for business.

"Going-forward, it's really about continuing to compensate with local and regional clients the slowdown with large clients," Andrier said.

The Geneva-based company, which competes with Germany's Symrise, Firmenich and IFF, produced healthy sales growth at its flavours business, but these gains were eroded by the strong Swiss franc. Overall, the division's sales rose 0.4 percent in the six months. Last year, flavours made up 52 percent of group sales and fragrances 48 percent, according to the company's website.

Givaudan's shares rose more than four percent to their highest in two months and were among the top gainers in the pan-European FTSEurofirst 300 index. The stock was 4.5 percent higher at 1,758 Swiss francs by 1149 GMT.

"These are robust results from Givaudan, considering the ongoing challenging market environment," Bank Vontobel analyst Jean-Philippe Bertschy said. He rates the stock at "hold."

The company and its peers have benefited from strong emerging market demand for their products, where consumers have had more money to spend on ready-meals and cosmetics. But growth in these markets has slowed down.

Givaudan stuck to its mid-term goal to grow revenue, excluding acquisitions and divestments, between 4.5 and 5.5 percent a year, assuming overall market growth of 2 to 3 percent. It also confirmed a commitment to return more than 60 percent of free cash flow to shareholders.

Net profit for the first six months stood at 339 million Swiss francs ($354.34 million) from 305 million francs year-ago.

The net result beat analyst expectations, which averaged 302 million francs.

© Thomson Reuters 2022 All rights reserved.