Givaudan sees a strong first quarter thanks to recent acquisitions
Over the past six months, Swiss scent and flavour giant Givaudan, the company behind many everyday tastes and smells we come into contact with, has worked hard to corner the natural end of the market. The company has correctly identified this segment as a high-growth one, and made two major acquisitions (Naturex six months ago, and Centroflora’s nutrition division almost a year ago) that – according to Givaudan’s first quarter earnings report – have paid off.
Givaudan’s share price has trended solidly up over the year so far
Givaudan said that sales in the first quarter of 2019 increased by 6.3% year on year to $1,523 million. The company said performance was strong across all categories, and that both acquisitions contributed. Centroflora Nutra apparently bought in CHF 4 million in sales, and Naturex contributed an impressive CHF 111 million.
The company has seen rising prices in regards to raw materials, but managed to pass a significant portion of that on to its customers without complaint. It plans to continue sharing these costs “in collaboration with its customers” over the rest of the year. A release said that the flavour division was a major growth contributor, seeing its performance driven by “new wins and good business momentum across all regions.”
The company’s CEO, Gilles Andrier, said that Givaudan had made a strong start to the year, telling investors: “Our key strategic focus areas of Naturals, Health and wellbeing, Active Beauty, Integrated solutions and local and regional customers delivered strong growth, supported by the recent acquisitions.”
Dominion holds Givaudan in its Global Trends Managed Fund.
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