Sales for the year came in at CHF 4.1bn, a drop of 1.1 per cent in Swiss francs compared to the previous year.
Currency effects dragged this figure down and in local currency the company reported a sales increase of 6.7 per cent.
However, these percentages have benefited from comparison with an expensive 2007 due to the integration of Quest International. On a pro forma basis, assuming the integration of Quest had taken place in January 2007, sales increased 1.0 per cent in local currencies and dropped by 6.4 per cent in Swiss francs.
EBITDA was not looking as gloomy as the sales would suggest, increasing 12.5 per cent to CHF 765m, due to integration savings of CHF 90m that partially compensated for higher costs.
Fine fragrance wins
The company’s fragrance segment led the way with a 7.9 per cent growth in sales in local currency and a 0.1 per cent decline in Swiss francs.
Within the segment, fine fragrances performed particularly well. This is in contrast to many of Givaudan’s competitors which have struggled with this division over the last year.
Givaudan explained that the sector is volatile and fast moving, and in order to stay ahead new wins must replace the large number of lost contracts. Regarding whether the company expected this success to continue into the first half of 2009, Givaudan said predictions were difficult in this ‘rollercoaster’ sector.
Operating income for the sector increased 29.7 per cent to CHF 153m but again on a comparable basis the income fell in pro forma terms from CHF 234m in 2007 to CHF 230m.
Flavours reported a growth in sales of 5.8 per cent in local currencies, and a drop of 2.0 per cent in Swiss francs.
Outgrow the market
Regarding the outlook for 2009 and beyond, the company said it was confident it would outgrow the market.
However, it said it was difficult to predict whether the soft fourth quarter resulting from destocking further down the supply chain, would run over into early 2009.
In addition, raw materials prices, which the company highlighted as an ongoing challenge throughout 2008, are not expected to drop significantly in 2009.