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Fine Fragrance, Price Increases Boost Givaudan’s 2022 Results

The Swiss fragrance and flavors supplier registered strong growth across product segments and geographies.

PARIS — Business at Givaudan, the world’s largest fragrance and flavors supplier, was boosted in 2022 by its fine fragrance activity and price increases.

Net profit at the Vernier, Switzerland-based company rose 4.2 percent on-year to 856 million Swiss francs, or $929.9 million, while company sales were up 6.5 percent in local currency and by 5.3 percent on a comparable basis to 7.1 billion Swiss francs.

Gilles Andrier, chief executive officer of Givaudan, in a statement called 2022’s environment “challenging,” partially due to higher input costs and inbound supply-chain disruptions.

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“Once again, we have demonstrated our strong focus on supporting the growth of our customers through excellent supply-chain performance, whilst at the same time delivering innovative and impactful solutions, which are a key part of our 2025 strategy,” he said.

Givaudan highlighted it had registered good growth across product segments and geographies. The group’s business in mature markets gained 1.9 percent and 9.9 percent in high-growth markets on a like-for-like basis.

“The company continues to implement price increases in collaboration with its customer to fully compensate for the increases in input costs,” Givaudan said.

In late January 2022, the group said it would realize price increases during the course of the year, due to the higher input costs.

Givaudan recorded strong growth from its fragrance and beauty division, with sales of 3.26 billion, representing a 5.3 percent rise in Swiss francs and 5.5 percent in like-for-like terms. Price increases helped buoy that. 

On a like-for-like basis, fine fragrance sales rose 14.3 percent, consumer product sales were up 2 percent ­— against a strong comparable, and fragrance ingredients and active beauty’s growth was 10.2 percent.

Sales at the company’s taste and wellbeing division equaled 3.86 billion Swiss francs, an increase of 7.5 percent in Swiss francs and 5.2 percent on a like-for-like basis.

Givaudan’s net debt at year-end 2022 stood at 4.53 billion, versus 4.39 billion at the end of 2021.

The company reiterated its goals for 2025. By then, it aims for organic sales growth of 4 percent to 5 percent on a like-for-like basis and a free cash flow of at least 12 percent — both measured on an average over a five-year period.

“In addition, we aim to deliver on key non-financial targets around sustainability, diversity and safety, linked to Givaudan’s purpose,” the group said.