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By
Reuters API
Published
Jul 19, 2019
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Givaudan confirms 2020 guidance, first half net profit up 2.3%

By
Reuters API
Published
Jul 19, 2019

Fragrance and flavour maker Givaudan said it was on track to deliver on its 2020 guidance after net profit rose 2.3% in the first half of 2019, with recent acquisitions boosting growth across its product segments.


Net profit increased to 380 million Swiss francs (310.12 million pounds) from 371 million francs in the first six months of 2018, while sales rose 6.3% on a like-for-like basis - Reuters


"Our strong performance for the first half of 2019 confirms the resilience of our business and our ability to consistently deliver industry leading financial performance," Chief Executive Gilles Andrier said in a statement on Thursday.

The Swiss company, which makes flavours for foods and drinks and fragrances for toothpaste and perfumes, has been benefiting as its customers, big consumer goods companies, try to innovate faster and use more natural ingredients.

Net profit increased to 380 million Swiss francs (310.12 million pounds) from 371 million francs in the first six months of 2018, while sales rose 6.3% on a like-for-like basis.

On a reported basis, including acquisitions, sales were up 15.7% to 3.094 billion francs.

The company, which competes with Germany's Symrise and U.S.-based IFF, confirmed it aimed 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 its five-year strategy cycle.

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