Givaudan achieves massive organic growth in the first half-year
Published: Tuesday, Jul 23rd 2024, 06:30
Updated At: Wednesday, Jul 24th 2024, 01:59
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As expected, the Geneva-based flavor and fragrance manufacturer Givaudan achieved higher sales in the first half of 2024. The industry leader benefited from a significant increase in sales volumes. Profitability was also clearly higher than a year ago.
From January to June, sales rose by 5.7 percent to 3.37 billion Swiss francs, as the supplier of flavors and fragrances for food, perfumes, household and personal care products announced on Tuesday. In organic terms, i.e. adjusted for acquisitions and disposals as well as currency effects, Givaudan even grew by 12.5 percent.
The Group benefited from a further significant increase in sales volumes. However, negative currency effects continued to have a dampening effect, as can be seen from the press release.
The medium-term target range for organic growth of 4% to 5% was therefore significantly exceeded. Analysts' expectations (AWP consensus: 11.4%) were also exceeded.
Significantly more profitable
Profitability also increased with the higher sales volumes. Cost measures also contributed to this. The operating result (EBITDA) rose by almost 19 percent to CHF 906 million. The corresponding margin thus improved from 21.6 percent to 24.2 percent. Net profit was 31 percent higher at 588 million.
As usual, Givaudan is not giving a concrete outlook for the current year. However, the medium-term targets remain unchanged. Accordingly, Givaudan is aiming for organic sales growth of at least 4 to 5 percent per year. In addition, free cash flow should amount to at least 12 percent of sales.
New Chief Financial Officer
Givaudan also announces the appointment of Stewart Harris as new Chief Financial Officer effective August 1. Harris is currently Head of Corporate Finance & Business Development and succeeds Tom Hallam, who will retire at the end of January 2025.
To ensure a smooth transition, Hallam will be available to provide management advice and support on a number of strategic projects until his retirement.
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