Givaudan beats on sales, share price jumps
Flavour and scent specialist Givaudan reported third quarter earnings for 2017 this week, painting a strong picture of the company and reiterating its targets for 2020. The company said that sales rose by 5.7% to 1.27 billion Swiss Francs ($1.3 billion). This easily beat analysts’ expectations, which saw sales rising to 1.24 Swiss Francs. Translated back into Swiss Francs, the company’s sales look even better, showing a 7.7% rise. These are strong results, particularly given the headwind of rising costs, which are plaguing Givaudan and others.
Givaudan’s share price jumped on the reported earnings
SOURCE: Yahoo Finance
In a short statement, Givaudan mentioned the challenges facing it and reiterated its plan to 2020, saying: “The company continues to successfully implement price increases in collaboration with its customers to compensate the increases in input costs.” and “The company reaffirms its 2020 ambition to create further value through profitable, responsible, growth.”
Givaudan and its peers are facing two-way pressure: on the one hand, input costs are rising. On the other, big food groups, which are amongst Givaudan’s most important customers, are seeing slowing growth.
Stripping out currency effects and acquisitions, Givaudan’s sales have risen by 3.5% over the first nine months of the year to 3.76 billion Swiss Francs. The company has forecast 4% to 5% average annual sales growth through to 2020.
Dominion holds Givaudan in its Global Trends Managed Fund.
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