Givaudan sees “good start” to the year, despite slight sales miss
Flavour and fragrance giant Givaudan, which is behind many of the scents and tastes we encounter on a daily basis, reported its first quarter results for 2018. The results were exclusively positive and, according to the company, constitute a “good start” to the year, despite slightly missing sales targets.
Sales rose by 5.4% year on year, to 1.308 billion Swiss francs – analysts had hoped for 1.335 billion Swiss francs. Adjusted for currency and acquisition, the company’s like-for-like sales rose by 5% from the previous year against analysts’ expectations of 5.6%.
Givaudan’s share price is up by 19% over the past year
SOURCE: Yahoo Finance
In a statement, Givaudan said: “Givaudan started the year with good business momentum and with the project pipeline and win rates being sustained at a high level.”
Looking at the results in slightly more depth, it is clear that the company’s fragrance business is in good shape, with like-for-like sales seeing a 5.7% increase year on year (over the same period, the company’s flavor division saw sales growth of 4.5%). Through the quarter, the ‘fine fragrances’ unit, which makes perfumes for big names like Dior and Prada, was a powerful contributor to this strong performance.
Givaudan confirmed its mid-term targets for 4% to 5% sales growth on average over a five-year period. It is also “planning to launch an offer for French natural ingredients group Naturex.”
Dominion holds Givaudan in its Global Trends Managed Fund.
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