PARIS — Givaudan’s net profits in the first half of 2017 rose 4.5 percent versus the same prior-year period, with gains registered in both its fragrance and flavors divisions.
The Vernier, Switzerland-based supplier said Thursday that income in the six-month period ended June 30 reached 384 million Swiss francs.
Givaudan’s operating profit declined 2.3 percent to 489 million Swiss francs, while its earnings before interest, tax, depreciation and amortization decreased 6.5 percent to 597 million Swiss francs.
The supplier’s sales of 2.48 billion Swiss francs rose 6.4 percent.
“The company continues to implement price increases in collaboration with its customers to compensate the increases in input costs,” Givaudan said in a statement.
During the first half of this year, the company’s fragrance division registered sales of 1.14 billion Swiss francs, up 0.4 percent. Total sales of fragrance compounds advanced 1 percent to 987 million Swiss francs, and revenues from fine fragrances were down 0.4 percent on a like-for-like basis, dampened by a strong prior-year comparable, the company said.
Sales from Givaudan’s consumer products activity gained 0.8 percent in comparable terms. The fragrance ingredients and active beauty business’ revenues decreased 2.7 percent in like-for-like terms.
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The flavor division posted sales of 1.35 billion Swiss francs, a 12 percent increase in reported terms and 4.4 percent on a like-for-like basis.
Givaudan reiterated its financial targets through 2020, aiming for average sales growth of 4 percent to 5 percent and average free cash flow of 12 percent to 17 percent of revenues.