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Givaudan Is Raising Prices This Year, Citing ‘Higher Input Costs’

Net profit at the Swiss fragrance and flavors supplier increased 10.5 percent in 2021.

PARIS — Givaudan, the world’s largest fragrance and flavors supplier, will realize price increases this year.

“With higher input costs in 2022, the company is implementing price increases in collaboration with its customers to fully compensate for the increases in input costs,” Givaudan said in a statement released Friday morning.

Net profit at the Zurich-based company increased 10.5 percent to 821 million Swiss francs, or $880.9 million, for the full-year 2021. Operating profit was 1.09 billion francs, a 9.3 percent rise.

Company sales in the period reached 6.68 billion francs, up 5.7 percent in francs and 7.1 percent on a like-for-like basis.

The company’s Fragrance and Beauty sales were 3.09 billion, a gain of 5.8 percent in local currency and 6.6 percent on a constant basis. The Taste and Wellbeing division’s revenues advanced 5.7 percent in francs and 7.6 percent on a like-for-like basis to 3.59 billion francs.

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Business in mature markets gained at 6.3 percent and in high-growth markets at 8.3 percent on a like-for-like basis.

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In Fragrance and Beauty, the product categories that were most hard hit during the first phases of the health crisis — fine fragrances and, to a lesser extent, active beauty — delivered double-digit growth in 2021.

The beverage, savory and snacks categories registered strong sales increases in the Taste and Wellbeing division, as did the plant-based proteins, health and wellness, and naturals segments.

Givaudan’s fourth-quarter 2021 sales increased 5.6 percent to 1.62 billion francs, spurred by all product segments and geographies.

The group reiterated its goals for 2025, which are fueled by three growth ambitions: expand the portfolio, extend customer reach and focused markets strategies.

By 2025, Givaudan 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 on average on an annual basis.

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

FOR MORE, SEE:

Givaudan Takes 48 Percent Stake in Nanovetores Group

Givaudan Invests in Chinese Fragrance and Beauty Incubator Next Beauty

Givaudan’s Fragrance Business Rebounds in First Half