Givaudan reports H1 earnings of 368 mln Swiss francs
today Jul 18, 2016
Swiss flavours and fragrance maker Givaudan on Monday reported first-half profit above estimates and said it expected to grow faster than the rest of the market in the medium term.
Givaudan's fragrance division, which makes perfumes and scents for toothpastes and shower gels, compensated for weaker growth at the flavours division.
Net profit rose to 368 million Swiss francs ($374.33 million) in the six months ended June 30 from a restated 342 million francs a year earlier. The figure beat analysts' forecasts for 347 million francs in a Reuters poll.
The Geneva-based company, whose flavours are used by food groups like Nestle, Unilever and Danone, said sales rose to 2.33 billion francs from 2.18 billion francs. The figure was just ahead of expectations for revenues of 2.31 billion francs.
Givaudan maintained its targets, which include sales growth of 4 percent to 5 percent over the next four years. The company has been one of the strongest performers on the Swiss Market Index, gaining nearly 13 percent so far this year.
The company was buoyed by a strong performance from its fragrance division, which makes fine fragrances like James Bond 007 for Women and Bottega Veneta Pour Homme Extreme as well as for consumer products like shower gels and washing powders.
The division's sales grew by 10.7 percent in the first half, outpacing the 3.5 percent sales rise at the company's flavours division.
Givaudan has been seeking to compensate for weaker conditions in western Europe and North America by winning new contracts from food companies in faster growing regions like South America and Asia. ($1 = 0.9831 Swiss francs)
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