Givaudan First-Quarter Fine Fragrance Sales Increased by 20.9%

The increase in sales was due to the increase in volume of Fine Fragrance with continued high levels of new business.

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On April 12, Givaudan, a Swiss essence and spice giant, announced its performance in the first quarter of 2023. In the first three months of 2023, Givaudan achieved sales of 1.773 billion Swiss francs, a year-on-year increase of 3.6%, and a decrease of 0.4% based on Swiss francs calculation.

According to information on the company's official website, Fine Fragrance sales increased by 20.9% LFL against a high prior year comparable growth of 17.4%, Consumer Products sales increased by 3.0% LFL and sales of Fragrance Ingredients and Active Beauty increased by 5.1% LFL(1).

The increase in sales was due to the increase in volume of Fine Fragrance with continued high levels of new business. In addition, all business departments have implemented pricing actions. All customer groups have achieved growth, particularly strong in high growth markets.

“The Company aiming to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow2 of at least 12%, both measured as an average over the five-year period strategy cycle. “

Givaudan CEO Gilles Andrier said: The solid sales growth in the first quarter once again demonstrates the importance of Givaudan's balance between its different business units, regions and customer segments. The company will continue to focus on innovation to enable our customers to bring quality products to market.

According to Reuters, J.P. Morgan analyst Celine Pannuti said in a note, "Overall, we believe the results mark a bottoming in volume deterioration seen since Q422 led by de-stocking, meanwhile pricing actions continue to be implemented to mitigate input cost inflation."

(1)LFL (Like-for-like) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period.

Source: Givaudan