Swiss fragrance specialist Givaudan boosts profits in 2017, confirms 2020 targets

Geneva, 26 January 2018 (AFP) - Swiss group Givaudan, a specialist in fragrances and flavours, published above-expectations 2017 results on Friday, and confirmed its targets for 2020. The Geneva-based group stated in a press release that its net income rose 11.7%, to CHF720 million (€616 million), in the last financial year.

Givaudan's full-year revenue was CHF5.051 billion, an increase of 4.9% on a like-for-like basis, and 8.3% in Swiss francs, when compared to 2016. Analysts queried by press agency AWP were instead expecting on average a net income of CHF649 million, and sales worth nearly CHF5.0 billion. "Givaudan closed the year with a strong commercial performance, and broadened its portfolio of projects and new contracts," said the group.

"Such robust growth came from all of the group's product and regional segments, and also from the contribution made by recent acquisitions," added Givaudan. Sales in local currency for the Fragrance division grew 4.5%, reaching CHF2.3 billion, while the Flavours division generated a revenue of CHF2.7 billion, up 5.3%.

The group indicated that "it continues to implement price increases (...) in order to compensate fully for the rising costs of raw materials." Givaudan also confirmed its targets for the 2015/2020 period, notably aiming for a sales growth between 4% and 5% per annum, and for a cash flow volume equivalent to between 12% and 17% of revenue.