PARIS — Givaudan reported a 12.7 percent increase in 2015 net profits, driven partially by cost-cutting measures.
Net income at the Vernier, Switzerland-based fragrance and flavors supplier reached 635 million Swiss francs, or $610.5 million, in the year ended Dec. 31, 2015.
A strong Swiss franc negatively impacted Givaudan’s sales, which increased 0.2 percent to 4.4 billion Swiss francs, or $4.23 billion. On a like-for-like basis, they advanced 2.7 percent.
Sales in the company’s fragrance division declined 0.6 percent to 2.1 billion Swiss francs, or $2.02 billion, while its flavors divisions’ revenues increased 0.2 percent to 2.3 billion Swiss francs, or $2.21 billion.
Dollar figures are converted at average exchange for the period to which they refer.
“With these solid annual results, I am pleased to announce that we have delivered on all the ambitious mid-term targets that we set in 2010,” said Gilles Andrier, company chief executive officer. “I am particularly happy with the sales growth in developing markets in the second half of the year.”
Givaudan reiterated its financial targets through 2020, aiming for average organic sales growth of 4 percent to 5 percent and average free cash flow of 12 percent to 17 percent of revenues.