PARIS — Givaudan’s 2011 net profits dropped 25.9 percent to 252 million Swiss francs, or $285.2 million, in a market rattled by mounting raw material costs.
In the 12 months ended Dec. 31, sales at the Vernier, Switzerland-based fragrance and flavor supplier decreased 7.6 percent to 3.92 billion Swiss francs, or $4.43 billion. On a constant-currency basis, revenues increased 5.2 percent. Dollar figures are converted at average exchange for the corresponding period.
Givaudan’s fragrance division’s sales dipped 7.8 percent to 1.83 billion Swiss francs, or $2.07 billion. On a constant-currency basis, revenues rose 4.7 percent. Revenues at the company’s flavor division were 2.08 billion Swiss francs, or $2.36 billion, down 7.5 percent on-year. On a constant-currency basis, revenues grew 5.7 percent.
The business achieved a strong sales momentum in a tough environment and a significant profit improvement in the second half of the year,” stated Gilles Andrier, Givaudan chief executive officer. “We are well on track for 2012 and to deliver on our mid-term targets.” As reported, that objective is to grow organically between 4.5 percent and 5.5 percent yearly, assuming the market is up between 2 percent and 3 percent, and to continue gaining market share during the next five years.