July 24, 2021
Swiss fragrance & flavor maker Givaudan First-quarter earnings were better than expected, driven by a return to growth in fine fragrance, a segment heavily impacted by the closure of stores and airport boutiques last year.
The Geneva-based group’s net profit increased 16.3% compared to the first quarter of the previous year, for a total of CHF 481 million (€ 444 million). Meanwhile, the company’s revenue increased 4.7% to CHF 3.3 billion. Press release.
By comparison, financial analysts surveyed by the Swiss business news agency AWP predicted that on average, they would generate 3.3 billion revenues and 453 million francs.
Group perfume and cosmetology sales increased 10.1%, excluding the effects of currency fluctuations and acquisitions, and fine fragrance, one of the most affected segments of the health crisis, was 16.4 in the first quarter of last year. % Decrease.
Sales of the cosmetics raw materials business, which decreased 0.1% year-on-year, also increased 14.4%.
However, in the company’s flavor division, Givaudan showed a “strong recovery” in the second quarter as health regulations were relaxed, but fast-food-related businesses “continued to be affected by the pandemic.”
Nonetheless, sales in the flavors division increased 6.1% due to advances in other segments such as vegetable proteins, beverage flavors and natural flavors.
Despite Covid-19’s impact on luxury fragrances and restaurant services, Givaudan is one of a group of companies that was relatively unharmed and was able to get out of the health crisis and even achieve revenue and revenue growth in the first half of last year. is.
The decline in premium flavors was largely offset by the demand for soap, sanitary and detergent scents, but the slowdown in restaurant service was well offset by the demand for flavors in foods consumed at home.
Givaudan has confirmed its medium- to long-term financial targets and is aiming for intrinsic sales growth of 4% to 5% by 2025.
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Givaudan perfume sales recovered in Q1
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