Givaudan’s Fragrance Business Rebounds in First Half
PARIS — Givaudan saw its fine fragrance business rebound in the second quarter of 2021 after being hard hit by the coronavirus pandemic.
In the three months ended June 30, the Swiss fragrance and flavors supplier overall registered a 6.1 percent on-year sales rise to 1.69 billion Swiss francs, or $1.85 billion. Its Fragrance & Beauty division’s revenues increased 9.1 percent to 776 million francs, while the Taste & Wellbeing division’s sales grew 3.6 percent to 923 million francs.
For the first half of the year, Givaudan registered net profits of 481 million francs, up 16.3 percent. Total group sales were up 4.7 percent to 3.37 billion francs.
“As the COVID-19 pandemic continued to have an impact on a global level, Givaudan sustained good business momentum whilst maintaining its operations and global supply chain at a high level,” the company said in a statement Thursday. “The strong growth was achieved across most product segments and geographies, with the mature markets growing at 6.1 percent and the high-growth markets at 10.4 percent on a like-for-like basis.”
The company’s Fragrance & Beauty division’s sales came in at 1.56 billion francs in the first half, up 7.4 percent. Fine fragrance sales surged 34.5 percent on a like-for-like basis, spurred by a strong rebound of prestige fragrances and specialty retail.
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“In Fragrance & Beauty, the product segments most affected by the COVID-19 pandemic, namely fine fragrances and to a lesser extent active beauty, showed a strong improvement in the first half of 2021 as retail activity picked up and as customers and consumers maximized the availability of other channels, including direct selling and e-commerce,” said Givaudan.
Givaudan’s Taste & Wellbeing division’s sales were 1.81 billion francs in the first half, a 2.5 percent gain.
“In Taste & Wellbeing, the food service segment was still impacted by the COVID-19 pandemic, however [it] experienced a strong recovery in the second quarter, as restrictions in relation to home food and beverage consumption started to be lifted in certain markets,” Givaudan said.
Gilles Andrier, chief executive officer of Givaudan, said all parts of the group’s business contributed to the financial results, as did contributions from strategic growth areas earmarked for 2025. Those include expanding the portfolio, extending customer reach and focused market strategies.
By 2025, Givaudan aims to reach organic sales growth of between 4 and 5 percent on a like-for-like basis and a free cash flow of at least 12 percent, as measured as an average during a five-year cycle. Non-financial targets are set, as well, for sustainability, diversity and safety.
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