Givaudan sees “good business momentum” in first quarter
Global flavor and scent market leader Givaudan saw sales increase by 3.5% to CHF 1.2 billion in the first three months thanks to “good business momentum” carrying over from the previous year. The company says its “project pipeline” remained strong, along with its “win rates” for new business. This increase is more impressive when you consider that it was facing very strong comparables for the previous year, and that it is currently in the process of raising prices “in collaboration with its customers to compensate the increases in input costs.”
Givaudan’s share price jumped by 4% last week!
SOURCE: Yahoo Finance
Givaudan reiterated its ambitions up to 2020, saying that it plans to build growth through three “strategic pillars”: growing with its customers, delivering with excellence, and partnering for shared success. It aims to “outpace the market” with growth of 4% to 5%, and a free cash flow between 12% and 17%, measured as an average over the five-year period of its strategic cycle.
The company’s flavor division reported sales of CHF 666 million for the quarter, growing by 4.8% on a like-for-like basis from the same period a year earlier. However, when inclusive of two of the company’s recent acquisitions – Spicetec and Activ International – growth stood at 14.1% in local currency.
With the exception of Latin America – where the company faced an extremely strong set of comparable figures from the previous year – Givaudan saw growth in all of its markets. Latin America declined 3.4%, year-on-year, but the same figure was positive for Asia Pacific (+2%), Europe, Africa and the Middle East (+6.1%), and North America (+9.2%).
Dominion holds Givaudan in its Global Trends managed Fund.
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