PARIS — Fragrance and flavors supplier Givaudan reported first-half net profits gained 7.6 percent to 368 million Swiss francs, or $403.3 million, bolstered by its perfume division.
In the six months ended June 30, the Vernier, Switzerland-based company’s sales were 2.33 billion Swiss francs, or $2.56 billion, up 6.9 percent on a reported basis and 6.2 percent in like-for-like terms.
Givaudan’s fragrance division posted sales of 1.13 billion Swiss francs, or $1.24 billion, a gain of 10.7 percent. Among its highlights: Total sales of fragrance compounds increased 9.5 percent to 977 million Swiss francs, or $1.07 billion, while fine fragrance revenues advanced 11.1 percent on a like-for-like basis, backed by strong new business and low erosion, according to the company.
Givaudan’s consumer products activity’s sales gained 10.2 percent in like-for-like terms, thanks to the performance in high-growth markets and a solid increase in mature markets. Revenues of fragrance ingredients and active beauty were up 5.2 percent on a comparable basis.
The company’s flavors division sales came in at 1.2 billion Swiss francs, or $1.32 billion, representing 3.5 percent growth in reported terms and 3 percent on a like-for-like basis.
Dollar figures were converted at average exchange for the period to which they refer.
Givuadan reiterated its objective of outpacing the market with 4 percent to 5 percent sales growth and a free cash flow of 12 percent to 17 percent of sales on average over the next five years.
The company also announced changes to its executive committee, effective Aug. 1. It said that Adrien Gonckel, currently the company’s chief information officer, will be retiring. And Anne Tayac, head of fragrance operations, is to become a member charged with designing, implementing and leading a global organization for business services and solutions.
As reported, Givaudan — as part of its strategy to keep developing its active-cosmetics business — in late June said it had expanded its collaboration with industrial bioscience company Amyris Inc. to research, develop and produce active-cosmetics ingredients. Over the past several years, Givaudan had been involved with Amyris on the R&D of proprietary fragrance ingredients.