Firmenich's perfume factory Geneva

PARIS — Firmenich, the largest privately owned fragrance and flavors maker, reported sales rose 4.9 percent in the first half of its fiscal year, driven by both divisions and markets such as China, North America and India.

Sales at the Geneva-based group were up 14 percent on a constant-currency basis and 2.3 percent on an organic basis at constant currency, reaching 2 billion Swiss francs, or $2.24 billion, in the six months ended Dec. 31, 2020.

Unfavorable exchange rates wiped 174 million francs off the total.

Adjusted EBITDA of 367 million francs was down 12.4 percent on-year on a reported basis and up 1.6 percent on in organic terms at constant currency.

The adjusted EBITDA margin was 18.4 percent, down 360 basis points, versus 22 percent in the same prior-year period. Half of the decrease is attributed to foreign exchange and the other half to the impact of the coronavirus pandemic on Firmenich’s acquisitions. Adjusted EBITDA margin remained constant on an organic basis at constant currency.

“Firmenich delivered a solid performance in the past six months, underpinned by sustained organic growth, despite new peaks in the pandemic,” Gilbert Ghostine, chief executive officer of Firmenich, said in a statement released on Thursday. “In a challenging environment, I am pleased that we demonstrated again the strength of our business, growing at double-digit rates in key markets such as China, North America and India.”

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The group’s Perfumery & Ingredients sales gained 1.6 percent organically at constant currency, bolstered mostly by consumer fragrances and ingredients.

“Our mid-market perfumery platform in North America delivered strong double-digit organic growth,” Firmenich said. “Fine fragrance continues to be impacted by the retail closures and travel restrictions, yet we have seen an encouraging sequential improvement in the second quarter.”

The company’s Taste & Beyond sales increased 3.6 percent organically at constant currency.

During its last fiscal year, Firmenich completed its acquisition of Les Dérivés Résinques et Terpéniques, or DRT, a maker of naturally derived renewable ingredients.

“This acquisition enables Firmenich to build the world’s leading innovation platform for renewable, biodegradable and sustainable ingredients for fragrances, flavors and nutrition,” Firmenich said. “While we are in the process of integrating DRT, revenue and profit were materially impacted by the pandemic in the first half of the year, as a result of lower volume and demand in the DRT industrial end markets as well as in the fine fragrance market.

“Despite this soft start, we remain entirely confident in the strategic fit of the acquisition, as well as in the quality of the assets and the team,” the company continued. “Feedback from our customers on the value of our unique and proprietary access to renewable ingredients confirms our confidence that DRT provides us a longterm competitive advantage.

For more, see:

Firmenich Creates Chief Consumer and Innovation Officer, Perfumery, Role

Ilaria Resta Named President of Firmenich’s Perfumery Division

Symrise Shifts Executives, Merges Business Groups

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